The Michigan Department of Transportation (MDOT) has obligated $296.5 million of American Recovery and Reinvestment Act (ARRA) projects three weeks ahead of the June 29 deadline imposed by federal legislation. By meeting the federal deadline, Michigan is now eligible to receive any ARRA funding redistributed from other states.
"This is great news for Michigan workers and Michigan taxpayers," said Gov. Jennifer M. Granholm. "We are rebuilding Michigan infrastructure while putting Michigan men and women back to work."
"This investment will result in approximately 8,800 jobs, including 1,800 construction jobs, 1,200 construction-related jobs, 1,300 supporting industry jobs and 4,500 indirect jobs," State Transportation Director Kirk T. Steudle said. "We also have obligated $36.2 million in local projects to date. Michigan workers are getting a real bounce from Recovery Act funding."
On March 31, 2009, Granholm signed legislation authorizing Michigan to spend $873 million in ARRA highway funding. The bill allowed the state to invest $635.4 million on state trunk lines (U.S., interstate and Michigan routes) with $211.8 million directed to programs administered by local jurisdictions and $25.8 million for rural and intercity bus capital projects.
MDOT also has submitted $13 million in ARRA-funded rural transit projects to the Federal Transit Administration, placing the state on track to meet the Sept. 1 federal deadline for obligating half of the rural and intercity transit projects.
The $296.5 million in highway funding is the first use of almost $7 billion in ARRA dollars allocated for Michigan.
On the other hand, MDOT told a committee of lawmakers that it would have to cut 137 road projects over the next five years because of declining revenues, the Detroit Free Press reported.
The road and bridge preservation projects would cost the state $740 million, but because of declines in gas-tax receipts and other revenues, the state faces a deficit of $102 million, according to MDOT Government Affairs Director Ron DeCook. “This means we will not be able to match about $576 million in federal funds in 2011,” said DeCook, according to the Detroit Free Press.
