Saginaw county cof c 5 2-13
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Transcript of Saginaw county cof c 5 2-13
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Encouraging Transportation Investment
Saginaw County Chamber of CommercePercolator BreakfastMay 2, 2013Horizons Conference Center
Rich Studley, President & CEOMichigan Chamber of Commerce
By:
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Michigan Chamber2013-14 Legislative Priorities:
Transportation
GOAL: Encourage Transportation Investment
Chamber Members Advocate:
• Increasing state & local investment in roads and public transportation by at least $1.6 billion per year by revising and modernizing the method of funding in a way that ensures costs are borne primarily by users of the system.
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Transportation Is The Backbone of Michigan’s Economy
35% of US/Canada trade flows through Michigan
$520 billion in freight is moved each year on Michigan’s highways, rail and water ports
Trucking accounts for 67% of all freight tonnage moved in
Michigan
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Operation of bus transit systems contribute an estimated $740 million to the economy each year
Passenger rail is expected to generate between $1.0-1.5 billion in net economic benefit annually
Aviation contributes more than $20 billion/year
80% of Michigan tourism isauto-based - $17.7 billion in total visitor spending in 2011
Transportation Is The Backbone of Michigan’s Economy
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Innovation and Efficiency• MDOT has saved an average of
$63M/year since 2009 on efficiencies & innovations. Examples include:– $48M: staff reductions & closed facilities
– $71M in one-time savings by bonding and process improvements
– $4M/year using electronic signatures for construction documents
– $22M in 2012 & 2013 by partnering with businesses & local governments & improving maintenance practices
– $4M/year in energy savings
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1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Perc
ent
Pave
men
t in
Goo
d &
Fair
Cond
ition
Inve
stm
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Leve
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Investment Condition (percent good and fair)
Trunkline Pavement Condition has Peaked
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Transportation Funding Roads and Bridges
Federal funds: $1 billion Includes $250 m to local agencies
State motor fuel taxes: $946 million State registration fees: $876 million
FEDERAL FUNDS $1B
STATE REGISTRATION
FEES $876M
STATE MOTOR FUEL TAX $946M
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Conditions are Getting Worse
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The Cost of Doing Nothing
• Costs of an inadequate system– $11.6 billion annually – lost time, wasted fuel, crashes, etc.
• $3,014 annually per driver– $370 per driver per year for auto repairs due to poor roads
• Safety impacts of an inadequate system– Total crashes in 2011: 284,049– Total cost of crashes : $8.25 billion– Total fatalities: 889– Total injuries: 71,796
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Benefits of Acting Now
• The economic impacts in the first two years:– 12,000 jobs each year– $1.598 B in personal income– $2.92 B in Gross State Product
• In the next 10 years, this $1.2 billion/year investment will generate:– Over $10 billion in real personal income– More than $24 billion in Gross State Product
• PLUS, better roads & transit, greater efficiency, improved safety
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Impact Could Be Felt in 2013
• If action is swift, work can begin this summer– If not, real progress will be delayed to next summer
• Transportation agencies and contractors are eager to do the work– MDOT’s program and lettings are 1/3 less in 2013 than
what they were 4-5 years ago ($650M vs. $930M)
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• Making investments to improve our state’s roads and bridges is sound economic policy.
• The conditions of Michigan’s roads and bridges continue to deteriorate.
• There is not enough money being generated to support our infrastructure system.
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• The average Michigan citizen pays $357 annually in unnecessary repairs to their vehicles due to poor roads.
• If we fix the roads, 1,000 lives over the next 10 years could be saved.
• Investing in our roads now benefits everyone in the state.
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Leading businesses. Moving Michigan forward.
www.michamber.com
Any Questions?