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Thursday, April 24, 2025

Citizens Research Council advises replacing Michigan's road funding law

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Brian Calley President and Chief Executive Officer at Small Business Association of Michigan | LinkedIn

Brian Calley President and Chief Executive Officer at Small Business Association of Michigan | LinkedIn

Public Act 51 of 1951, which allocates Michigan's road funding, should be replaced with a new formula, the Citizens Research Council (CRC) suggests in a recent report. This proposal aims to allocate funds based on the actual needs and costs associated with road and bridge construction and maintenance.

Eric Paul Dennis, CRC Civil Engineer and Urban Planner, stated that the oft-cited "fiscal cliff" regarding state road funding is exaggerated. "That doesn’t mean we shouldn’t be talking about funding at this time. Even if our nominal funding stays flat, inflation can eat away at purchasing power fairly quickly, but as we have these talks, let’s keep all this in context. We don’t seem to be in a panic situation quite yet,” Dennis said.

CRC's analysis contrasts with Michigan's rank as the 30th state for road funding. Dennis stated that while other analyses position Michigan unfavorably for road funding, data indicates it is adequately funded. Different evaluation methods account for these differences, he noted.

Regarding bridges, the state has reduced the percentage of bridges deemed in poor condition to 11.3% in 2024, ranking it 43rd in the U.S. Overall, Michigan's highway system condition places it 40th nationally, according to the CRC report.

The report critiques the data collection method of the Transportation Asset Management Council (TAMC), which uses the Pavement Surface Evaluation and Rating (PASER) system. "One issue is that this is a rather subjective metric. There are a number of human biases that could impact this rating. TAMC data is often presented as though it is an objective and engineering quality metric, but it is neither," Dennis said.

The $3.9 billion funding gap currently debated by the Michigan Legislature and Governor Gretchen Whitmer partly relies on this subjective data. Dennis advocates for the International Roughness Index (IRI) as a more objective metric, as it has shown an increase in good-condition roads in the state contrary to PASER data.

Dennis observed a lack of correlation between the level of funding and actual road conditions, citing inefficiencies in the system. "You can be quite well-funded and have a very inefficient road program," he said.

Public Act 51, originally created to address road shortages, has undergone over 300 amendments but retains much of its original structure, Dennis explained. The CRC also recommends improved coordination between state and local agencies for infrastructure planning.

In contrast, the Michigan Department of Transportation (MDOT) contests the CRC's report. They argue the approximate $4 billion funding gap is corroborated by independent analyses, factoring in increased fuel-efficient vehicles, which affect state revenue. MDOT also uses metrics, including Remaining Service Life and Federal Pavement Condition Measure, in addition to PASER.

MDOT's memorandum emphasizes that poorer condition roads necessitate significant investments to improve, while better maintained roads require less funding for upkeep. They advocate that additional funding could greatly enhance the state's transportation infrastructure.

Article courtesy of MIRS News for SBAM’s Lansing Watchdog newsletter

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