Transcript Michigan’s Infrastructure Needs and Funding Michigan Department of Transportation Transportation Is The Backbone of Michigan’s Economy  35% of US/Canada trade flows through Michigan  $520

Michigan’s Infrastructure
Needs and Funding
2013
Michigan Department of Transportation
Transportation Is The Backbone of
Michigan’s Economy
 35% of US/Canada trade flows
through Michigan
 $520 billion in freight is moved
each year on Michigan’s
highways, rail and water ports
 Trucking accounts for 67% of
all freight tonnage moved in
Michigan
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Transportation Is The Backbone of
Michigan’s Economy
 Operation of bus transit systems
contribute an estimated $740 million to
the economy each year
 Passenger rail is expected to generate
between $1.0-1.5 billion in net economic
benefit annually
 Aviation contributes more than $20
billion/year
 80% of Michigan tourism is
auto-based - $17.7 billion in total visitor
spending in 2011
Asset Management
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Innovation and Efficiency
• MDOT has saved an average of
$63M/year since 2009 on efficiencies &
innovations. Some examples include:
– $48M: staff reductions & closed facilities
– $71M in one-time savings by bonding
and process improvements
– $4M/year using electronic signatures for
construction documents
– $22M in 2012 & 2013 by partnering with
businesses & local governments &
improving maintenance practices
– $4M/year in energy savings
Trunkline Pavement Condition has
Peaked
$900
100%
95%
92%
92%
91%
91%
89%
$700
89%
86%
$600
85%
82%
$500
80%
78%
75%
$400
75%
75%
73%
71%
69%
$300
70%
67%
$200
65%
64%
$305
$326
$362
$444
$410
$518
$521
$610
$658
$624
$572
$667
$551
$442
$471
60%
$180
$100
$160
Investment Level in Millions
90%
87%
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
$0
55%
Investment
Condition (percent good and fair)
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Percent Pavement in Good & Fair Condition
$800
Transportation Funding
 Roads and Bridges
 Federal funds: $1 billion
 Includes $250 m to local agencies
 State motor fuel taxes: $946 million
 State registration fees: $876 million
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$2,000
State Highway & Bridge
Investment History (in millions)
$1,800
Actual $
$1,600
$1,400
$1,200
CPI deflated $
$1,000
$800
$600
PPI deflated $
$400
$200
$0
1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
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Commodity Prices
$160
$140
$120
Unit Price
$100
$80
$60
$40
$20
$0
2005
2006
2007
2008
Excavation, Earth
Reinforcement Steel
Hot Mix Asphalt
Reinforced Concrete
2009
2010
2011
Structural Steel
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Statewide Average Salt Costs
Statewide Average Salt Costs
Average Cost Per Ton
$65.00
$60.00
$55.00
$50.00
$45.00
$40.00
$35.00
$30.00
$25.00
$20.00
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Time to Act
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1
Conditions are Getting Worse
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Pay Now or Pay Later
Trunkline Investment Scenarios
100%
90%
$3 B
% Good/Fair
70%
$10 B
$8 B
$6 B
$5 B
80%
Match All Federal Aid
$8 B
Match All Federal Aid +$917M/Year
Additional Investment
60%
$17 B
50%
$21 B
40%
$24 B
30%
2012
$12 B
$25 B
$26 B
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2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
The Cost of Doing Nothing
• Costs of an inadequate system
– $11.6 billion annually – lost time, wasted fuel, crashes, etc.
• $3,014 annually per driver
– $370 per driver per year for auto repairs due to poor roads
• Safety impacts of an inadequate system
–
–
–
–
Total crashes in 2011: 284,049
Total cost of crashes : $8.25 billion
Total fatalities: 889
Total injuries: 71,796
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Benefits of Acting Now
• The economic impacts in the first two years:
– 12,000 jobs each year
– $1.598 B in personal income
– $2.92 B in Gross State Product
• In the next 10 years, this $1.2 billion/year
investment will generate:
– Over $10 billion in real personal income
– More than $24 billion in Gross State Product
• PLUS, better roads & transit, greater efficiency,
improved safety
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REGIONAL
COMPARISON
STATE
STATE PROFILE (thousands)
Population
MICHIGAN
9,834
Illinois
12,831
Indiana
6,484
Minnesota
5,304
Ohio
11,537
Wisconsin
5,687
Registered
Vehicles Annual VMT
7,822 97,567,000
10,789 105,788,000
5,698 75,761,000
4,848 56,632,000
9,800 111,836,000
4,968 59,420,000
STATE INVESTMENT ALLOCATION (thousands)
Lane
Miles
257
293
200
284
262
237
Total
Funding
$1,709,199
$3,017,527
$1,215,322
$1,672,190
$2,706,474
$1,315,897
Funding
Per Pop.
$174
$235
$187
$315
$235
$231
Funding Per
Lane Mile
$6,651
$10,299
$6,077
$5,888
$10,330
$5,552
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Impact Could Be Felt in 2013
• If action is swift, work can begin this summer
– If not, real progress will be delayed to next summer
• Transportation agencies and contractors are eager
to do the work
– MDOT’s program and lettings are 1/3 less in 2013 than
what they were 4-5 years ago ($650M vs. $930M)
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Questions?
“Providing the highest quality
integrated transportation services for
economic benefit and improved
quality of life.”
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