August 2, 2013

Kirk T. Steudle, Director

Michigan Department of Transportation

Mayors & Managers Forum: A Bumpy Road

Customer Survey: www.michigan.gov/mdotsurvey

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Trunkline Pavement Condition has Peaked

Conditions are Getting Worse

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Transportation Needs: $1.5 B/yr.

• Ideally, transportation funding supports needs of all transportation systems– Bottom Line…Not enough money to do it all– Some effort to prioritize must be done

• Decisions must be based on most cost effective options that have largest benefits– May mean doing something different– Can’t keep doing what we’ve always done and

expect a better result

Prioritizing Investment

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Reinvigorating the economy…creating jobs

Preserving existing assets

Moving people & goods effectively

Highest priority for the state & transportation

• Savings: $63 m per year over 5 years– Closed facilities– 15% of positions left vacant– Refinance debt– Electronic signature– Energy retrofits– Leveraging Partnerships– Many other cost-saving innovations

MDOT Efficiencies

– Convert cents-per-gallon gas tax to % of wholesale price, plus 14₵ increase to 33₵

– Diesel parity, from 15₵ to 33₵– Increase passenger registration fees 60%– Increase weight-based truck fees 25%– Direct revenue to the roads that are most used– Plus a local option countywide registration

Other proposals also exist: a sales tax increase dedicated to transportation or eliminating loopholes in current tax law

The Governor’s Proposal

Fiscal Year 2014 Budget• $120 million to STF to match federal funds• $115 million for Roads and Risks Reserve

Fund in October, another $115 million in February– A total of $230 million to accelerate programmed

preservation work• Just a down payment on the $1.5 billion per

year additional investment needed– $1.2 billion through statewide user fee increase– $300 million by enabling local-option fees

Community Impacts

• Biggest impact is lack of action on revenue package

• Community impacts subject to size of revenue package and local investment decisions

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Questions?

Customer Service is ImportantPlease take our customer survey:www.michigan.gov/mdotsurvey