SEMCOG PUSHES FOR MORE REVENUE TO FIX MICHIGAN’S ROADS

Original Story: detroitnews.com

Detroit — Members of the Southeast Michigan Council of Governments urged the Legislature on Thursday to move ahead and approve a gas tax increase to generate more revenue for the state’s crumbling roads.

SEMCOG presented a resolution that supported a Senate-passed plan and opposed a House effort because it fails “to generate rough revenue to reverse the deterioration of our roads.” A Grand Rapids Transportation Lawyer represents clients in Michigan Transportation Law matters.

At a meeting Thursday morning, SEMCOG officials — along with representatives from local governments and road commissions — criticized the House bills because they would “divert a significant existing revenue stream from public schools and divert significant revenues from local governments.”

House Bill 6082 calls for the additional sales tax revenue to be split three ways for road repairs: 39 percent to the Michigan Department of Transportation, 39 percent to county road commissions and 22 percent to cities and villages.

“Michigan is standing on the precipice of a historic opportunity,” SEMCOG executive director Kathleen Lomako said. “We see three potential outcomes: Our Legislature could fail to act, which means more crumbling roads and bridges, inadequate transit and unsafe winter roads. A Detroit Transportation Lawyer has experience in Michigan Transportation Law and represents clients in transportation claim recoveries.

“We could follow the direction of the House: Fund roads by jeopardizing the future or our schools, transit and local government services. This is not an acceptable solution. Or, our leaders can follow the direction set by the governor and the Senate: Fix the roads, support transit, protect our schools and local government services.”

That statement comes as legislative leaders attempt to hash out a deal to generate $1.2 billion in additional money for road repairs in a conference committee — and extending the sales tax to some services is a possible option.

The conference committee is composed of three senators and three representatives, with majority Republicans controlling four of the seats. If the panel can get two votes from members of the Senate and House, their reported legislation would be advanced to the floors of both chambers for a vote, potentially next week during the final three days of the lame-duck session.

According to SEMCOG, the Senate bill:

 Provides $1.5 billion after four years phase in and residents will see an improved transportation system in two to three years. An Indianapolis Transportation Lawyer is following this story closely.

 Eliminates fuel tax and creates tax on wholesale price of fuel, which is phased in and fully funded after four years.

 Funds public transit through an existing formula.

 Provides first state increase in funding of public transit since 1987.

According to SEMCOG, the House bill:

 Raises $1.4 billion after eight years.

 Directs funding to maintenance rather than reconstruction. No new funding for public transit.

 Eliminates the fuel tax and creates a tax on the wholesale price of fuel. Legislation also eliminates the 6 percent sales tax on fuel, resulting in revenue losses to public schools and local governments.

SEMCOG recently released the results of its 2014 road evaluations, which concluded the metro area saw a staggering jump in the total miles of roads that should be repaired by completely rebuilding them from the soil on up. The study found that 1,900 miles of major roadways needed to be reconstructed, a jump of 500 miles compared to two years ago.

Another 1,900 miles are in need of preventive maintenance to keep them from slipping into poor condition. Only 650 miles of roadway in the metro area are considered to be in good condition, according to the SEMCOG evaluation.

On Thursday, the conference broke into laughter when Detroit Mayor Mike Duggan began his remarks with references to the city no longer being in a state of bankruptcy. A Denver Transportation Lawyer assists clients in the resolution of cases involving transportation law.

“I greatly appreciate not having to ask Kevyn Orr for permission to be here,” Duggan said. “We put Kevyn on a plane, and it was just like sending your kid off to college.”

Duggan said he supported Gov. Rick Snyder as well as the Senate bill on how to raise revenues for Michigan roads.

“All of us here are behind the governor,” Duggan said. “We lost power to a number of buildings here in Detroit last week due to failing infrastructure. Well, the same thing is happening to our roads.”

Duggan was followed by Macomb County Executive Mark Hackel who said the state “has a tremendous need for road funding.”

“There is a very limited amount of funding to do what needs to be done,” Hackel said.

“The Senate has a great plan. It raises funds but it doesn’t take away from local governments or the schools. We put the world on wheels but now people are embarrassed to put their wheels on our roads.”

Outgoing Wayne County Executive Robert Ficano said the state can no longer afford to “kick the can down the road.”

“With good roads, you’re much more attractive for economic development,” Ficano said. “The time to act is now.”

Washington Township Supervisor Dan O’Leary came straight to the point when he spoke in support of the Senate bills.

“I’m a little angry because I just had to pay $1,700 for repairs to my truck’s suspension,” O’Leary said. “That’s one thing people don’t talk about: the hidden tax that comes with poor roads.”

The last time the gasoline tax was raised was in 1997 when the Legislature raised it from 15 to 19 cents per gallon. Over the past decade gas revenues have gone into a steep decline due to motorists driving less with more fuel efficient vehicles.

At the same time the cost of concrete, asphalt, road salt, fuel, insurance and repairs have continued to rise.

Amtrak in Michigan: Beware of Cost Spike

Story first appeared on The Detroit News

Michigan's costs for passenger rail service will quadruple this fall under a federal act requiring the state to
subsidize its busiest Amtrak route.

The 4-year-old law shifts an annual subsidy of about $25 million from the federal government to the state.

Added to the $8 million Michigan provides for its other two Amtrak lines, the state's tab for passenger rail
service will jump to about $33 million.

Tim Hoeffner, director of the Michigan Department of Transportation's rail office, said the state has little
choice but to absorb the added cost if it wants to meet a growing demand for passenger train service in the lower half of the state.

Ridership on the Pontiac-Detroit-Chicago route, Amtrak's most popular with three daily trains, has risen to nearly a half-million passengers per year. Ridership totaled nearly 800,000 on all three state routes last year, a record.

"I don't think if we reduced the quality of service we would continue to grow our revenues," he said. "Our
business model is that you have to grow your way to prosperity."

Under a different philosophy in the late 1990s, the state cut subsidies and reduced service. The result was drops in ridership and revenue that were proportionally greater than the decrease in service, Hoeffner said.

The subsidy shift — atop other federal dictates — irritates House Speaker Jase Bolger, R-Marshall, who will be asked to OK it as part of the state budget.

"I'm so mad at the federal government for its continuation to force our hand, to try to tell us what to do,"
Bolger said. "We need to evaluate on our own what's right for Michigan's citizens, what's right for the
transportation structure in our state.

"What bothers me about this is the federal government coming in and telling us what to do when they can't even get their own job done," said Bolger, referencing spending battles in Congress.

But the state is in the midst of a major financial commitment to improve departure and arrival schedules, travel times and amenities.

In December, Michigan's Transportation Department signed a deal with Norfolk Southern Railway and the federal government to buy 135 miles of track between Dearborn and Kalamazoo for $140 million.

Work begins in 2014 to upgrade the track so trains will be able to reach speeds as high as 110 miles an hour on that section of what will become high-speed service along the Pontiac-Detroit-Chicago route, which Amtrak calls the Wolverine.

There's been additional progress on MDOT's high-speed rail project: Trains have been able to run at 110 mph for almost a year on 80 miles of the 100-mile portion of the Wolverine route between Kalamazoo and the Burns Harbor area of Indiana.

It's the first stretch of rail outside the northeastern U.S. rail corridor to see that speed, Hoeffner said.

"We'll raise the speed as much as we can in as many places as we can along the route," he said.

Hoeffner said the state's higher tab to subsidize Amtrak will be included in the 2013-14 fiscal year spending plan Gov. Rick Snyder presents to the Legislature Feb. 7. The new state budget takes effect Oct. 1.

MDOT officials knew this was coming. It's mandated by the Passenger Rail Investment and Improvement Act of 2008, which shifts Amtrak subsidies from the federal government to the states on routes shorter than 750 miles. The Wolverine route is 283 miles long.

There is a trade-off: The federal act also awards millions of federal dollars to Michigan to cover the full cost
of new passenger cars Amtrak will start running on the state's lines in three to four years.

Most Amtrak routes are subsidized because ticket revenues fall short of costs.

In Michigan, the state has been subsidizing two routes, the Blue Water and the Pere Marquette. Until now, the feds had provided the subsidy for the Wolverine.

Besides setting a new ridership high in Michigan in 2012, Amtrak took in a record $29 million. The official
ridership figures for the year: The Blue Water route, once daily between Port Huron, East Lansing and Chicago, 187,991 passengers. The Pere Marquette, once a day between Grand Rapids and Chicago, 109,501. The Wolverine had 495,277 riders.