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Encouraging Transportation Investment

Encouraging Transportation Investment

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Encouraging Transportation Investment

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  1. Encouraging Transportation Investment Saginaw County Chamber of Commerce Percolator Breakfast May 2, 2013 Horizons Conference Center By: Rich Studley, President & CEO Michigan Chamber of Commerce

  2. Michigan Chamber 2013-14 Legislative Priorities:Transportation GOAL: Encourage Transportation Investment Chamber Members Advocate: • Increasing state & local investment in roads and public transportation by at least $1.6 billion per year by revising and modernizing the method of funding in a way that ensures costs are borne primarily by users of the system.

  3. 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

  4. 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 isauto-based - $17.7 billion in total visitor spending in 2011

  5. Innovation and Efficiency • MDOT has saved an average of $63M/year since 2009 on efficiencies & innovations. 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

  6. Trunkline Pavement Condition has Peaked

  7. 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 STATE MOTOR FUEL TAX $946M FEDERAL FUNDS $1B STATE REGISTRATION FEES $876M

  8. Conditions are Getting Worse

  9. 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

  10. 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

  11. 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)

  12. Making investments to improve our state’s roads and bridges is sound economic policy. • The conditions of Michigan’s roads and bridges continue to deteriorate. • There is not enough money being generated to support our infrastructure system.

  13. The average Michigan citizen pays $357 annually in unnecessary repairs to their vehicles due to poor roads. • If we fix the roads, 1,000 lives over the next 10 years could be saved. • Investing in our roads now benefits everyone in the state.

  14. Any Questions? Leading businesses. Moving Michigan forward.www.michamber.com