In The News

Deal reached on Michigan transportation budget

A temporary government shutdown in Michigan has been averted. Gov. Jennifer Granholm signed a balanced budget for the coming year, which relies heavily on an infusion of federal funds for transportation projects.

The transportation budget, which comes in at $3.2 billion, doesn’t include authorization to move forward on a proposed new Detroit River crossing.

House and Senate lawmakers worked out a compromise to approve a 2010-2011 state budget that raises the $84 million the state needed to secure about $475 million in federal matching money to benefit roads and bridges.

With a budget agreement in place, the state will sell short-term bonds, redirect some driver’s license fees and reduce spending in other areas to raise the money.

Rep. Dave Agema, R-Grandville, was critical in his comments that the budget is merely a short-term solution to a potential long-term problem. He estimates an even bigger transportation funding hole next year – as much as $140 million.

“For years, budgets have been passed that simply roll over all of this year’s budget problems into next year. This is no different,” Agema said in a statement. “We can’t continue to kick the can down the road and expect the problems to go away.”

Proponents said difficult decisions had to be made. Despite calls from some organizations and lawmakers to increase fuel taxes, they said a deal was done that didn’t resort to any tax increase.

Plans to move forward on a second bridge over the Detroit River were delayed. The state Department of Transportation was allotted only enough money to continue existing contracts on the project connecting Detroit and Windsor, Ontario, through May. At that time, the next governor and Legislature will need to decide whether to go through with plans for the Detroit River International Crossing.

The transportation bill – HB5589 – also includes limits on the use of toll credits related to the river crossing. The credits are sought to help local funding meet the threshold to access federal transportation funds.

Michigan could not use toll credits earned from a private tolled bridge to fund a new international crossing within five miles of the private tolled bridge.

The Ambassador Bridge is about two miles from the proposed DRIC site. Bridge owner Matty Moroun has been pushing to build his own bridge next to the Ambassador.

To view other legislative activities of interest for Michigan, click here .

Editor’s Note: Please share your thoughts with us about the legislation included in this story. Comments may be sent to [email protected] .

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