On the federal side

We have spent a lot of time recently talking about the state transportation funding situation. Let’s turn to the federal side of the ledger and see what is happening over there. I wish I could tell you there was better news coming from Washington, but there isn’t.

The short-term extension to the current federal funding program Congress approved late last year is coming to an end. Moving Ahead for Progress in the 21^st Century (MAP-21), will sunset at the end of May 2015 without an action of Congress. If that wasn’t bad enough, the transportation trust fund will run out of money in July unless Congress finds a way to increase funding. Barring no new revenue, the feds would have to slow down repayment of federal funds to states, curtailing the number and types of projects states and local governments can invest in.

Transportation Secretary Anthony Foxx was in town this week to discuss this problem and pitch the need for additional transportation funding at both the state and federal level. While Congress tries to find a short-term solution, Secretary Foxx was ready to talk long term. The Administration was ready to introduce their version of a long-term solution called Generating Renewal, Opportunity, and Work with Accelerated Mobility, Efficiency, and Rebuilding of Infrastructure and Communities throughout America Act, or the GROW AMERICA Act.

The GROW AMERICA Act is a six-year transportation reauthorization proposal transmitted to Congress by the Administration that provides increased funding for our highways, bridges, transit, and rail systems.

What would it do for Michigan? The proposed GROW AMERICA Act would put almost $300 million more federal dollars into Michigan’s underfunded highway and transit systems.

That is great you say, but what is the catch? Well, there are two.

1. The proposed $478 billion GROW AMERICA program would be paid for with the Administration’s proposal to collect taxes on corporate earnings that are currently parked overseas. There is not a lot of support for this revenue source.
2. In order to be able to accept an additional $300 million in federal funds, we would have to come up with an additional $75 million in state and local funding. Good luck with finding that!