Bill includes more than $800 million for Michigan roads, bridges
By: Health Insurance
Submitted: 2009-12-25 13:01:28 | Word Count: 412
Michigan would be in line for more than $800 million in new federal funding for roads and bridges and would get a reprieve from providing state matching funds for federal aid, under a measure passed Wednesday by the U.S. House of Representatives.
The so-called “Jobs for Main Street Act,” which includes money for a variety of infrastructure purposes and extends unemployment benefits, health insurance subsidies for unemployed workers and other programs, would provide $847.5 million in new funding for Michigan roads and bridges, according to U.S. Rep. Sander Levin, D-Royal Oak.
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The money would be on top of Michigan’s normal highway allocation.
A Michigan association of highway construction companies and suppliers, the Michigan Infrastructure and Transportation Association, or MITA, said the bill also exempts states from the required match to receive full federal aid. And that’s another key issue for Michigan.
Crain’s reported in its Dec. 7 edition that Michigan next year might have to walk away from $475 million in federal highway funds because it lacks the $84 million for a state match.
And through fiscal 2014, the state could lose nearly $2.1 billion in federal funding because it won’t be able to match all the funds it is eligible to receive, according to Michigan Dept. of Transportation projections.
Gov. Jennifer Granholm and members of Michigan’s congressional delegation have expressed interest in having the federal government waive the requirement that states provide matching funds for federal projects such as road and bridge construction.
The House-passed legislation now goes to the U.S. Senate.
MITA said the additional money for Michigan roads is welcome, but it doesn’t come close to meeting the state’s needs. The extra money also would not go to local roads, which face their own significant funding shortfalls.
Mike Nystrom, vice president of government and public relations for MITA, said state lawmakers still need to address Michigan’s overall road funding problems.
“We caution the state elected officials that this is a short-term solution,” he said.
“The long-term solution is still something that will still have to be debated and solved in Lansing, not in Washington.”
