LANSING - In a state that is in no condition to hear more bad economic news, out comes a Nov. 10 report that says Michigan's transportation routes will continue to deteriorate without doubling our state's investment in roads and bridge repair.

The 13-member Michigan Transportation Funding Task Force - a bipartisan group appointed by the governor and legislature that included labor, political and business representatives - reviewed the state of the state's transportation system for 10 months and concluded that if current funding levels continue, "The financial and practical impacts of this inadequate level of investment are so profound that this is clearly not an option for Michigan."

Right off the bat, the task force said, without the immediate commitment of additional state money, Michigan stands to lose up to $1 billion a year in federal matching funds. The report said a total of $3.2 billion was invested in Michigan roads in 2008.

Under the "do-nothing" strategy, the task force said, the result would be the loss of 13,000 jobs, the vast majority in construction. The state trunkline system would deteriorate from today's 90 percent in good condition to about 65 percent in good condition by 2015; and the local road system and local bridge condition would be expected to deteriorate even more quickly. The "do-nothing" plan does not allow for new or expanded road work.

"Michigan needs to take action to stimulate economic activity and keep the personal
mobility we enjoy today," said Rich Studley, co-chair of the task force and president and CEO of the Michigan Chamber of Commerce.

Added co-chair Dennis Gillow of Operating Engineers Local 324: "One of the best ways government can help improve the economy and create jobs is to invest in infrastructure."

The group said a future "good" investment level would about double the current investment highways, roads and bridges to a total investment of $6.1 billion, which would include the federal match of $1 billion. An additional 74,000 jobs would be created.

A "good" investment level, as defined by the task force, would allow the state to match anticipated federal aid, and would preserve 85 percent of state trunk-line pavements and 90 percent of state trunk-line bridges in good condition. At the local level, it also would be sufficient to allow resurfacing, pavement repairs, paving of some gravel roads, intersections improvements, modest road widenings, and would preserve 85 percent of local bridges in good condition. It would also address congestion, particularly in urban areas, with funds for the highest-priority capacity improvements.

And the task force's "Better" investment would produce $12.7 billion annually, providing
" a world-class system of highways, roads, and bridges throughout the state" and could potentially sustain some 179,000 jobs.

The task force found that Michigan's road funding mechanism is woefully inadequate. A typical Michigan auto driver pays 2½ cents per each mile driven; a typical semi-truck driver, 8 1/3 cents. Transit investment in Michigan is half to one-tenth the investment made by other populated, economically diverse states like New York, New Jersey, Maryland, Illinois, Massachusetts, California, even Minnesota and Delaware.

Michigan gets road repair money from gasoline taxes, which have declined in recent years in conjunction with lower consumption brought on by higher gas prices and fewer miles driven. "Compounding this historic under-investment," the task force said, is continued inflation in materials costs which reduces the total amount of money in the pot for projects.

Where to go from here? The task force first recommended increasing "efficiencies" around the state: more purchasing and labor cooperation between jurisdictions that share roads, better mass transit, and improved use of technology to reduce congestion, such as in the area of better traffic signals.

But the big money will have to come from elsewhere. For example, a 10 percent increase in Michigan vehicle registration fees would provide about $86 million in additional revenue per year.

Michigan's per-gallon motor fuel taxes (19 cents per gallon for gasoline and 15 cents for diesel fuel) currently provide about half the revenue to the state Transportation Fund. Michigan's per-gallon motor fuel taxes have not increased in ten years, and were not increased for ten years prior. "This helps explain why under-investment in transportation is an ongoing problem in Michigan," the group said.

The Task Force suggested several options, including increasing motor fuel taxes over time, or converting the cents per gallon motor fuel tax to a percent of sales price.

Other options include designating a portion of all state sales tax receipts to transportation. Public-private partnerships could be enabled for road-building. Toll roads could be established.

"Based on the information at their disposal," the Task Force said, "it could reach only one conclusion. More investment in transportation is absolutely needed. Much more."

Now comes the hard part, finding the money.