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Michigan, 14 other states tire of being 'donors' of U.S. highway money

Date Posted: October 17 2003

LANSING - During the past six years, Michigan has averaged an 88 percent return on highway funding it sends to the federal government, giving it the dubious distinction of being a "donor state."

Now, Gov. Jennifer Granholm and leaders of the other 14 states who put in more than they receive in federal highway dollars are lobbying Congress to provide a return of at least 95 percent. A multi-state letter signed by the governors on Sept. 30 comes as President Bush signed a five-month temporary extension law to continue the nation's highway and transit programs.

"Michigan drivers know that too many of our roads are in poor condition and cause higher vehicle repair costs," Granholm said. "While I'm pleased Congress and the president have kept the transportation funds flowing, too much of our money is spilling into other states. I hope Congress will pass a six-year bill by early next year that gets Michigan the full 95 percent minimum guarantee we deserve."

A 95 percent return is projected to help bring home approximately $200
million more per year to Michigan in federal highway funds.

The governors have formed a group called SHARE, or "States' Highway Alliance for Real Equity." The governors have endorsed the Highway Funding Equity Act, legislation co-introduced by Senator Carl Levin (D-MI) and House Majority Leader Tom Delay (R-TX),
and co-sponsored by Michigan's congressional delegation.

The governors wrote, "This inequity disproportionately impacts our commuters with more congestion, less safety and mobility, and higher vehicle repair bills than
experienced in the 'donee' states."

Other donor states include Arkansas, Florida, Georgia, Indiana, Kentucky, Louisiana, Mississippi, North Carolina, Ohio, Oklahoma, South Carolina, Tennessee, Texas, and Virginia.

Between 1998 and 2001, there were 26 states that received less than a 100 percent share of their contributions to the Highway Trust Fund, and 20 states received less than a 95 percent share.