Significant Boost Proposed for Michigan’s Ailing Economy

November 10, 2008

Transportation Rescue Plan Would Generate Jobs, Investments

LANSING, Mich. — Michigan would gain thousands of new jobs and billions in new economic development and redevelopment by implementing recommendations of a new statewide transportation system report released today by a blue ribbon panel of business, labor and government leaders, the Michigan Municipal League (MML) said.

The 62-page report from the Transportation Funding Task Force presents a frank assessment of Michigan’s neglected and crumbling transportation system, including roads and bridges, public transit and aviation. The task force recommends reforms to make transit operations more efficient and cost effective, and significant new investments in public transit and roads to generate jobs and economic development.

“The broad conclusion of the report is spot on: Michigan’s economy can prosper again if we make significant public and private sector investments in public transit and roads and bridges,” said MML Executive Director and CEO Dan Gilmartin. “The converse is also true. Michigan simply will not prosper again if we continue to disinvest in our roads and fail to develop transit alternatives to driving including adequate bus systems, light rail and commuter rail. We need the Governor and our legislative leaders to join with the private sector, citizens, and the federal government to make transportation an economic development priority.”

Gilmartin noted new public transit projects are moving forward in Grand Rapids, Detroit, Ann Arbor and Howell. The recommendations in the task force report and legislation pending in Lansing — including House Bill 6114 — would provide foundations to support transit jobs and investments in the future, he said.

“These projects represent a terrific start but still fall short of the level of rapid transit system development Michigan desperately needs to create jobs, generate new development and attract young, college educated people to live in our communities,” Gilmartin said. “Michigan simply must get to the level of investment recommended in the task force report, or we will continue to watch from the sidelines as urban areas in other states thrive as a result of their rapid transit systems.”

The Transportation Funding Task Force was created by Governor Jennifer Granholm and the Michigan Legislature in 2007. Its 13 members include leaders of the Michigan Chamber of Commerce, organized labor, state and local governments, both major political parties, public transit, aviation, tourism, and the general public.

After months of work and public meetings across the state, the task force report concludes that: “The consequences to Michigan if action is not taken to address the need for increased transportation investment are dire indeed.” Michigan will lose up to $1 billion in federal funds each year, “putting more than 17,000 jobs at risk.”

Increasing transportation investment to a “good level” will “sustain 126,000 Michigan jobs, attract new business, and open new global markets for Michigan products and services. It will yield nearly $15 billion in other economic benefits for all sectors of the Michigan economy.”

For mass transit, the report says a “good investment level” will allow agencies to replace aging bus fleets with greener and more fuel-efficient vehicles. “It will enhance convenience and choice in passenger transportation and allow implementation of long-overdue travel alternatives, such as commuter rail and light rail …. It will provide urban travel options that make Michigan cities more attractive to business and residents.”

Gilmartin noted cities across the nation that have built rapid and mass transit systems in the past 15 years — Dallas, Minneapolis, Denver, Charlotte, Portland — have gained thousands of new jobs and billions of dollars in new private sector development, including residential housing units, retail stores, restaurants, entertainment venues and other cultural attractions, grocery stores and shopping centers, and much more.

“Investing in roads and public transit is a proven economic development policy that other cities in other states have embraced,” he said. “Sadly, Michigan has not and is missing out on the many economic, environmental and social benefits of transit.”

MML, along with many business, labor, government and citizen organizations, will be seeking new transit and transportation policies and investments in Michigan in the coming months and years.

The Michigan Municipal League advocates on behalf of its member communities in Lansing, Washington D.C., and the courts; provides educational opportunities for elected and appointed municipal officials; and assists municipal leaders in administering services to their communities through League programs and services. For more information, visit www.mml.org.

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