Recently released economic impact studies have sounded troubling alarms that unless Michigan takes quick action to increase transportation funding for next year, the state will lose out on a golden opportunity to create thousands of good-paying and desperately needed jobs.
The Anderson Economic Group, in a study commissioned by the Michigan Chamber of Commerce, concluded that Michigan will lose 12,000 jobs and the chance to jump start its economy if state lawmakers fail to pump new money into the state’s deteriorating transportation system. The study, released in late May, said Michigan could generate more than 15,000 construction jobs if it doubled the state’s investment in roads and bridges. That would help pave the way for a long-awaited economic turnaround.
Just last week the Michigan Department of Transportation released a study which showed that for every 10 jobs created in the public transit sector, six additional spin-off jobs are created in the rest of the economy. The study also noted that in 2008 transit operations provided about 9,200 jobs and contributed $1 billion to Michigan’s economy.
“The findings of these studies are clear – legislators are putting the safety and the jobs of Michigan citizens on the line by failing to take responsible action to invest in the state’s transportation system,” said Ken Sikkema, senior policy fellow at Lansing-based Public Sector Consultants and former Michigan Senate majority leader.
The Anderson Economic Group study, “Michigan’s Roads: The Cost of Doing Nothing and the Rewards of Bold Action,” marks the first time economists systematically connected transportation funding with the backbone Michigan industries that rely on a quality transportation network – manufacturing, tourism, and agriculture. During the last six years the amount of money available to fix roads and bridges in the Michigan Transportation Fund has steadily declined. That’s largely due to more fuel-efficient vehicles that result in less gas tax collections and fewer new car purchases which reduce the amount of money collected in registration fees. Michigan’s gas tax has not been increased since 1997 despite big increases in the costs of road and bridge repair and construction. The study also documents the direct link between poor road conditions and the associated dangers to motorists. Lousy roads increase the number and severity of accidents and also drive up the costs of both medical care and vehicle repairs.
The Michigan Department of Transportation case study "Economic and Community Benefits of Local Bus Transit Service," used a Michigan-based assessment tool created to help MDOT and transit agencies better understand the important role transit plays in stimulating the state's economy to the benefit of local communities and their residents. The study found that public transit agencies across the state collectively generated $1 billion in economic activity as a result of their hiring and spending, coupled with the re-spending of out-of-pocket cost savings by riders. The study also says that the money passengers save by taking the bus, add $264.4 million to the Michigan economy.
"For the first time, a local transit agency can now quantify the economic impact and value of bus operations on their community," said Clark Harder, executive director of the Michigan Public Transit Association. "This study cuts right to the chase, focusing on Michigan passengers and our transit bus-based service."
The two-year study was conducted for MDOT by HDR Decision Economics, using the most recent data available. To learn more, visit: www.michigan.gov/mdot. View the Anderson Group study at: http://www.michamber.com/docs/AEGRoadStudy.pdf .
The Michigan Transportation Team (MTT) is a broad-based, bipartisan partnership of business, labor, local government, associations and citizens with the common goal of improving Michigan’s transportation infrastructure. The DriveMI campaign is committed to promoting the development and maintenance of a safe, convenient and efficient transportation network that serves the public, private and economic development needs of Michigan. Please visit www.drivemi.org for more information on transportation funding or follow them on twitter @drivemi or YouTube at www.youtube.com/user/FixMIRoads or find them on Facebook.