DETROIT – In today’s global economy, businesses have a virtually unlimited number of choices where to locate or expand to grow jobs. The places that will win the battle for those jobs are those that provide the most value relative to their costs. In Michigan, we’ve made tremendous strides to compete on costs, but we have work to do in some critical value areas, including the quality of our infrastructure.
At $154 per person, MI ranks last among all states for what it spends on roads, and it shows. We rank 45th in urban road condition and we have 1,354 bridges that are considered structurally deficient. This has a negative impact on our ability to attract jobs. Businesses considering expanding or locating in Michigan see our crumbling infrastructure and question if they are going to be able to move their people and goods around efficiently.
And the longer we delay, the worse the situation will get. While the use of State General Fund revenues over the last two years has provided a temporary reprieve, we can’t continue to rely on one-time fixes. Further, using General Fund dollars in this way, reduces funding for other important priorities such as public safety, higher education, and our communities.
Business Leaders for Michigan?s’ view: A permanent solution is needed. The cost of maintaining and improving our roads and bridges is the responsibility of all who use them, and is currently supported through gas taxes and vehicle registration fees. The revenue raised from these sources is insufficient to keep our roads in good condition, falling short by more than $1 billion. If we want better roads, we need to find a long-term revenue source for fixing them.
