Michigan road 'crisis' report now pegs annual funding need at $2 billion and growing

LANSING, MI -- The price tag for fixing Michigan roads continues to grow with legislative inaction.

Former state Rep. Rick Olson (R-York Township), who began annual road "crisis" studies while serving in the Legislature, released his latest report on Wednesday, projecting Michigan would have to spend an additional $2.18 billion a year to keep most roads in good or fair condition.

"As a conservative Republican, when I look at the numbers, I don't like the idea that we're somehow going to have to find this revenue," said Olso

n, who now works as a House Republican policy adviser on other issues . "You can't just find it through waste, fraud and abuse. It's just not there."

Officials say it is cheaper to maintain a good road than it is to replace a poor one, meaning the long-term cost increases every year the state fails to increase funding. Olson's annual report, which is based on a model he developed with a bipartisan House panel and the Michigan Department of Transportation, reflects that reality.

Back in 2011, the workgroup projected that the state would need to increase annual road funding by $1.4 billion a year in order to maintain the condition of most roads and bridges. Olson's 2012 report pegged the annual need at $1.5 billion, and a 2013 version recommended $1.75 billion a year.

The 2014 numbers reflect current construction costs, which had not been adjusted since the original 2011 report, but do not take into account the potential impact of Michigan's brutal winter and subsequent thaw, which is expected to produce one of the biggest pothole seasons in recent history.

The state Legislature has, in recent years, made a series of one-time appropriations to help repair roads, but lawmakers have not advanced a long-term funding plan despite acknowledging the need.

Rep. Rick Olson

"It just sickens me when I look at those roads that could have been maintained with minimal dollars that are now just falling apart," said Olson, who lives in the Ann Arbor area. "Because we didn't do what we should have done, it's going to cost us a lot more. I have a business background, and it just doesn't make any business sense."

Olson's latest road funding report comes as the state Legislature begins work on the fiscal-year 2015 budget after approving a mid-year supplemental spending bill that includes $215 million in one-time money for road maintenance and construction projects.

Michigan Gov. Rick Snyder made road funding a top priority in his 2012 budget, calling for an additional $1.2 billion in revenue through increased fuel taxes and registration fees. The Legislature approved some one-time funding but did not sign off on his revenue plan.

Legislative leaders, speaking Tuesday night at a Lansing Regional Chamber dinner, said they continue to discuss road funding on a regular basis and remain optimistic they can agree on some sort of a plan this year.

A new bipartisan road proposal may be taking shape in the House, according to the

, which reports ideas include bumping

 diesel taxes to match gasoline, converting both fuel taxes to a wholesale rate, lowering truck weight limits and requiring tougher warranty standards on roads.

"I think we need to build a solution, and a solution doesn't happen all at once," House Speaker Jase Bolger (R-Marshall) said Tuesday. "It happens one step at a time. We've taken some of those steps, and I think we need to continue to build more."

Jonathan Oosting is a Capitol reporter for MLive Media Group. Email him, find him on Google+ or follow him on Twitter.

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