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Road money increase around the bend - and a fairer system, too?

Date Posted: March 18 2005

Michigan will be receiving more money to fix roads and bridges, and spending fairness among the states may be on the way to becoming a little more equitable.

The House on March 10 approved a six-year, $284 billion transportation spending package that would provide Michigan an additional $185 million per year for road and bridge work. Michigan wanted a bill that would have provided about $300 million per year.

In addition, Congress seems poised to provide more equity to "donor" states like Michigan that sends more money in taxes to Washington than it receives in transportation benefits.

"While specific provisions that impact donor states were not changed in this particular version of the bill, donor state members have received a commitment from House leadership to work on raising the minimum guarantee rate-of-return to at least 92% at the conference committee," said Gary Naeyert, a long-time transportation advocate.

Michigan currently only receives a return of 88 percent of the money taxpayers send to Washington earmarked for road work - ranking us at No. 47 in terms of equity received.
The bill goes to the Senate, and President Bush has indicated he would be willing to sign off on the compromise legislation.

"This is not a final victory in making this bill equitable for donor states, rather our first significant accomplishment," said a statement from the Michigan Transportation Team, a lobbying group which includes unions.