At a recent State Transportation Commission meeting MDOT leadership announced they would invest $1.27 billion in their 2009 Highway Program. This investment level represents roughly a 10% reduction from their $1.38 billion 2008 Highway Program investment.
In breaking down that $1.27 billion investment, MDOT is currently projecting that approximately $625 million in road and bridge projects will be let in fiscal year 2009. The balance of the $1.27 billion investment will be used to fund routine maintenance (snow plowing, mowing, etc.) performed by the Department, early preliminary engineering (project scoping), preliminary engineering (design), construction engineering, right-of-way acquisition, and other miscellaneous non-discretionary programs.
Compared to the dollar volume of road and bridge projects initially projected by MDOT for letting in 2008, this 2009 letting projection is very comparable. However, the 2008 road and bridge project lettings grew significantly to a fiscal year total of over $940 million as a result of Governor Granholm’s Local Jobs Today Initiative and MDOT’s advanced construction of some large projects from the later years of their 5-Year Program. Without an influx of new transportation revenues similar growth in the 2009 projected $625 million road and bridge program is not anticipated.
At this same State Transportation Commission meeting, MDOT leadership further announced significant downward adjustments in the 2010-2013 Highway Program. MDOT is conservatively projecting a reduction of $400 million in their Highway Program starting in 2010 as a result of the significant drop in state transportation revenues such that MDOT will be unable the provide the necessary matching funds to expend Michigan’s full allotment of the federal-aid transportation funds.
MITA continues it’s aggressive push for increasing state transportation funding. To help head off this dreadful funding scenario that will face our state and our industry as soon as 2010, we encourage all members to get involved in MITA’s state transportation funding initiative.
If you have any questions, please feel free to contact Glenn Bukoski at glennbukoski@mi-ita.com or Doug Needham at douglasneedham@mi-ita.com or by phone at (517) 347-8336.
