Michigan, which is one of a number of states seeking to lose its status as a “donor” state for highway funding, will apparently have to get used to that status for a while longer.

On April 2, the U.S. House adopted the next generation of the Transportation Equity Act (TEA LU, or HR 3550), which allocates $275 billion in federal highway spending over the next six years. The House bill would reduce Michigan’s share of federal road money by $100 million per year, and if adopted would result in the immediate cessation of some state contruction plans.

Michigan planned to spend about $1.3 billion on road and bridge construction this year, about the same as 2003. The increase adopted by the House does nothing to address the spending “equity” among the states. As a donor state, Michigan only receives 90.5 percent of its return on highway money sent to Washington.

“We continue to be frustrated and disappointed that HR 3550 represents a major step backwards on the issue of donor state equity,” said Gary Naeyaert, co-chair of Michigan’s Transportation Team (MTT), a diverse coalition working to improve transportation funding fairness for all states. “Receiving the same meager return on a smaller piece of the pie is unacceptable, and we urge the leadership in Congress to remedy these fundamental deficiencies in the conference committee report.”

The House’s new six year transportation funding program actually reduces the minimum funding guarantee to states, to only 84% of what is sent to Washington.

The U.S. Senate’s version of highway spending is more generous. On Feb. 12, the Senate adopted a six-year, $318 billion spending bill that increases the minimum guarantee rate-of-return to 95.0% for all states. The differences will be worked out in conference.

“We have over a billion reasons to persuade transportation advocates to stay energized and continue working on this bill,” said Naeyaert. “The estimated difference in funding for Michigan between the Senate bill and the House bill is at least $1.2 billion.”

Meanwhile, President Bush has threatened to veto any transportation spending bill that comes to his desk with a price tag greater than $256 billion over six years.

Michigan has become much more serious about transportation funding in recent years. Our state spent an average of $560 million per year from 1994-1996, and the expenditures have been even or have risen every year since.

“Michigan cannot afford any reduction in the scope of minimum guarantee funds, and we cannot continue to settle for only a 90.5 percent return on our federal transportation taxes,” said state Transportation Director Gloria Jeff. “If TEA LU is approved in its current form at the $275 billion funding level, Michigan’s federal transportation funding equity problem will worsen during the next six years.”

RITE OF SPRING: Busting up the median barrier along the closed eastbound lanes of I-96 in Detroit is Marty Gay of Operating Engineers Local 324. A two-year project will completely renovate part of I-96. In all, the state is spending as much as $1.3 billion in highway and bridge construction in 2004.