LANSING - With the state government's chronic lack of money and legislators' inability to pass a balanced budget, we shouldn't be surprised that Michigan's roads - and construction workers' employment opportunities - are going to suffer their share.

According to a report issued last month by the Michigan Infrastructure and Transportation Association (MITA), funding to construct and maintain the state's roads and bridges is expected to decline by 18 percent in 2008 - and that's one of the biggest areas of decline anywhere in the state budget.

"This is a typical case of pay me now or pay me much more later," said Mike Nystrom, vice president of government and public relations for MITA. "The Legislature just adopted a state budget which includes $1.5 billion in new tax revenues without addressing the desperate needs of our transportation network."

The Michigan Department of Transportation has been warning about the funding shortfall for months.
Back in April, MDOT Director Kirk Steudel told Michigan Building and Construction Trades Legislative Conference delegates that the state's current 92 percent "good" rating for the condition of the state highway system will not last without additional revenues.

He said Michigan will spend $1.62 billion on highway work in 2007. That number will drop to $1.3 billion next year, and then decline to about $1.2 billion in each of the years 2009, 2010, and 2011. Those declining expenditures mean that the "good" rating is projected to apply to only 68 percent of the state's highways by 2014. "We're going to need a greater revenue stream to keep it going," Steudle said.

And with the state budget cut to the bone, there's little likelihood that that's going to happen. MITA said the state will have an estimated $700 million annual shortfall in just maintaining the MDOT-managed system, and at least $2 billion in additional needs at the local level.

When it comes to federal dollars, Michigan remains a "donor" state, receiving only 92 cents on every federal gasoline tax dollar it sends to the feds. Political battles by fellow donor states to increase that share in recent years have not been very fruitful.

State spending on roads in Michigan is one-third from federal money and two-thirds generated from the state. And 53 percent of state road improvement expenditures are generated from Michigan's 19-cents-a-gallon fuel tax. High gas prices have lessened usage of gasoline - and lower usage has resulted in fewer taxes collected.

MITA said a report by the University of Michigan estimates that our state will lose 12,255 jobs in many sectors of the economy by 2009 as a result of these cuts. The jobs are being lost not only in construction, but also in manufacturing, professional services and business services, according to the report.