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Mayors & Managers Forum: A Bumpy Road

Mayors & Managers Forum: A Bumpy Road. August 2, 2013 Kirk T. Steudle, Director. Michigan Department of Transportation. Customer Survey: www.michigan.gov/mdotsurvey. Trunkline Pavement Condition has Peaked. Conditions are Getting Worse. Transportation Needs: $1.5 B/yr.

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Mayors & Managers Forum: A Bumpy Road

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  1. Mayors & Managers Forum: A Bumpy Road August 2, 2013 Kirk T. Steudle, Director Michigan Department of Transportation Customer Survey: www.michigan.gov/mdotsurvey

  2. Trunkline Pavement Condition has Peaked

  3. Conditions are Getting Worse

  4. Transportation Needs: $1.5 B/yr. • Ideally, transportation funding supports needs of all transportation systems • Bottom Line…Not enough money to do it all • Some effort to prioritize must be done • Decisions must be based on most cost effective options that have largest benefits • May mean doing something different • Can’t keep doing what we’ve always done and expect a better result

  5. Prioritizing Investment Reinvigorating the economy…creating jobs Highest priority for the state & transportation Preserving existing assets Moving people & goods effectively

  6. MDOT Efficiencies • Savings: $63 m per year over 5 years • Closed facilities • 15% of positions left vacant • Refinance debt • Electronic signature • Energy retrofits • Leveraging Partnerships • Many other cost-saving innovations

  7. The Governor’s Proposal • Convert cents-per-gallon gas tax to % of wholesale price, plus 14₵ increase to 33₵ • Diesel parity, from 15₵ to 33₵ • Increase passenger registration fees 60% • Increase weight-based truck fees 25% • Direct revenue to the roads that are most used • Plus a local option countywide registration Other proposals also exist: a sales tax increase dedicated to transportation or eliminating loopholes in current tax law

  8. Fiscal Year 2014 Budget • $120 million to STF to match federal funds • $115 million for Roads and Risks Reserve Fund in October, another $115 million in February • A total of $230 million to accelerate programmed preservation work • Just a down payment on the $1.5 billion per year additional investment needed • $1.2 billion through statewide user fee increase • $300 million by enabling local-option fees

  9. Community Impacts • Biggest impact is lack of action on revenue package • Community impacts subject to size of revenue package and local investment decisions

  10. Questions? Customer Service is ImportantPlease take our customer survey:www.michigan.gov/mdotsurvey

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