Funding update

Let’s take a look at the current transportation funding situation.

In Washington…As expected, the Senate finally approved a two-month extension of the nation’s transportation program, which was set to expire May 31.

This extension kicks the can on the program down the road until the end of July, at which point both the spending authority and the funding will run out. There is little hope of a long-term bill between now and then, so another short-term extension – this one likely through the end of 2015 – is the most plausible outcome, assuming members can find the $11 billion needed to fund the Highway Trust Fund that long.

In Michigan…The state legislature continues to work on the budget even as many of them spent much of last week at the annual Detroit Regional Chamber Policy Conference on Mackinac Island. Reports indicate that they will dedicate $400 million in general funds to transportation.

It would be the fifth straight year that the state transfers general fund money to the road budget. This is another way of saying that traditional sources of revenue such as fuel taxes are not generating enough revenue. The legislature has yet to find a long-term solution to the funding crisis.

We may need a little “truth squad” on this increase to transportation funding.

This year, the state is putting in about $287 million from the general fund to transportation.
The proposed budget agreement is reported to increase that amount to $400 million.
This is an increase of $113 million – not an increase of $400 million, as is being reported. This would be a nice symbolic political move, but not nearly enough to address the significant needs that we stare at every day.

One more thing, all of this money would go to roads only. There are no increases for public transit! Be sure to let your legislators know how you feel about that!

Can you see the parallels here? Neither Congress nor the Michigan Legislature can find the will to address the long-term transportation infrastructure needs of our country and state. They just keep kicking the can down the road – another year, another legislative session, another election with nothing getting better.

Stay tuned. This is far from being over. In the meantime, let your representatives know if you agree with their action/inaction. The only way things can change is by you letting them know how you feel.

This is a very different scenario than previous extensions in that we have run out of money. They will have to come up with additional dollars or they cannot extend the program any longer. A long-term bill – with funding – is needed, or the federal program will be severely cut back.

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