June 5, 2009


Miller: Feds should put up money for Michigan road projects

By TODD SPANGLER
FREE PRESS WASHINGTON STAFF WASHINGTON – U.S. Rep. Candice Miller called today for the federal government to put up money for Michigan road projects without the cash-strapped state being forced to pay its usual share, saying she’d introduce legislation to that effect if the White House can’t see its way to granting a waiver.

Miller, a Harrison Township Republican, carped in a news release and a letter to Ed Montgomery, President Barack Obama’s point man to help auto communities and workers, that recent news of the state’s intention to cancel 137 road and bridge projects because it can’t come up with its share is unacceptable at a time when thousands are being thrown out of work.

The federal government typically pays about 80% of the cost of projects through its Highway Trust Fund, but the state has to come up with its 20% share. This week, Michigan Department of Transportation Director Kirk Steudle said the state’s 19-cent-per-gallon gas tax hasn’t generated enough cash, meaning it will cancel $740 million in road and bridge repairs.

“I understand the concept that states need to provide matching funds in order to receive federal dollars,” said Miller. “However, these are extraordinary times and Michigan has been uniquely devastated by the current economic crisis. Withholding $740 million in road projects will only make things worse.”

There’s an issue of fairness as well, she said.

For years, Michigan officials have complained of the state’s standing as a so-called donor state – meaning it pays more into the federal highway fund via gas taxes then it gets out for road and bridge projects. In 2007, the Heritage Foundation, a conservative think tank in Washington, D.C., issued a report showing Michigan got about 87 cents back for every dollar it put into the fund, compared to a state like California – which got a nearly dollar-for-dollar return, or Florida, which got $1.27 for every $1 it put into the trust fund.

And that’s with Michigan getting a return. If it is forced to forgo $740 million in projects because it can’t come up with its share, that federal money, said Miller, could go to other states – making Michigan’s rate of return even worse.

That, said Miller, means “subsidizing other state that are not experiencing near the economic upheaval as we are in Michigan. That is simply not acceptable.”

Any efforts such as Miller’s, however, would be a long shot.

Nick Farber, a transportation policy associate with the National Conference of State Legislatures, said today that most, if not all, states are seeing a decline in transportation revenues because of more fuel efficient cars and high gasoline prices. Any move such as the one contemplated by Miller – which would ask to waive Michigan’s contribution to get road money for two years – would see a parade of states lining up for similar treatment.
The White House declined to comment on the legislation and letter. But the state Department of Transportation said it would take whatever help it could get.
“We certainly welcome the congresswoman’s effort and support,” said Ron DeCook, an MDOT spokesman. Asked if he knew of any state getting such a general waiver from the match for federal dollars, he acknowledged he had not.



Okay, how many of us wake up this morning thinking we would be rooting for Candace Miller?