In a late night session at the nation’s capital, the U.S. House of Representatives passed a $154 billion jobs bill last night that would provide an estimated additional $850 million for transportation projects in Michigan in 2010.
The “Jobs for Main Street Act” invests more than $27 billion in highways improvement in order to help stimulate the national economy. In a surprising twist, the legislation would exempt states from the required federal match in order to receive their full federal aid. News reports over the past year have revealed that Michigan stands to lose $600 million a year because of the inability to match federal aid.
While the news from Washington is encouraging and investment in infrastructure is a proven job creator, MITA continues to call on state legislators to fix the long-term funding problem. The Michigan gas tax provides $100 million less per year than just five years ago due to declines in gas consumption.
Even with the additional federal revenue, pavement conditions will continue to decline. The Transportation Funding Task Force (TF2) last year said a $3 billion a year increase in transportation funding was needed in order to overcome a decade of declines and maintain the current road network in good condition.
The stimulus bill taps $75 billion of bank-bailout funds from the treasury to pay for more infrastructure projects and assistance for cash-strapped states. About $48 billion of the TARP funds would pay for highway construction projects, high speed rail, water projects, and school construction.
The legislation now moves to the U.S. Senate for consideration, which is not expected to take up the plan until next year.
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T’was a week before Christmas, when all through DC
Rumors were swirling of the next spending spree.
Bills were being drafted by congress with care
In hopes that an economic recovery would soon arrive there.
Contractors were nestled all snug in their beds,
While visions of low bids danced in their heads.
Pelosi in the chair as head of House caucus,
And Senate Finance Chair, powerful Max Baucus.
Let’s stimulate the economy and invest in our roads,
An unemployed electorate is like kissing a toad.
Twenty-eight billion for highway repair,
A replay of ARRA will curtail the despair.
A billion for wastewater and a billion for drinking,
The underground industry will slow from its sinking.
Although bills won’t be finished before Christmas ends,
Talks will resume in 2010.
And then Santa sprang to his sleigh with a whistle,
Whizzing above the potholes he bristled.
I heard him exclaim, as he disappeared out of sight,
We can employ all our people and get rid of the blight!
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Merry Christmas from the MITA staff.
Please feel free to contact Mike Nystrom at mikenystrom@mi-ita.com or Keith Ledbetter at keithledbetter@mi-ita.com or call the MITA office at 517-347-8336 with any questions or comments.
