At a recent State Transportation Commission meeting, Michigan Department of Transportation (MDOT) leadership announced they would invest $1.27 billion in their 2009 Highway Program.
This investment level represents roughly a 10-percent 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 (snowplowing, mowing, etc.) performed by MDOT, 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 Five-Year Program. Without an influx of new transportation revenues similar growth in the 2009, the 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.