Crain’s Detroit Business: Michigan Chamber Study: Road repairs would add 11,000 jobs in state
Net employment in the state would increase by 11,000 jobs, direct and indirect, if a proposed $1.4 billion undertaking to repair Michigan’s roads moves forward, a study contends.
The study, commissioned by the Michigan Chamber of Commerce and conducted by Lansing-based Anderson Economic Group LLC, proposed four funding options for the work. The scenarios would increase vehicle registration fees or raise wholesale motor fuel taxes, or both.
“We’re looking to find the most sensible way to fix Michigan’s roads and bridges while creating an environment for economic growth and prosperity here in Michigan,” chamber President and CEO Rich Studley said in a statement.
If the $1.4 billion came from an increase in vehicle title and registration taxes alone, the average annual registration tax paid per vehicle would rise to $288 per vehicle. In 2010, the average was $112.
If the money came solely from an increase in motor fuel taxes, it would raise the price of gasoline by 45 cents a gallon in today’s market, according to the study.
The study estimates 25,000 jobs would be created. But because of a tax increase, the state would lose 14,000 jobs indirectly from a drop in household and business spending.
The effort stems partly from Gov. Rick Snyder’s proposal to increase transportation spending by $1.4 billion over the next 12 years to fix the roads.
The study says that funding for Michigan’s roads has not kept pace with rising construction costs and that taxes haven’t kept pace with inflation.
It also predicts that the costs to repair the roads will rise, because the longer that maintenance is put off, the more expensive it becomes.
