TRIP Reports: Michigan’s Economic Recovery Could Be Jeopardized By Transportation System Challenges, Including Deteriorated Roads & Bridges, Needed Safety Improvements And A Lack Of Transportation Funding

TRIPMichigan’s transportation system faces mounting challenges in the form of deteriorated roads and bridges, a lack of adequate safety features, highway bottlenecks and an inability to fund projects needed to support economic development opportunities in the state. Increased investment in transportation improvements at the local, state and federal levels could improve road and bridge conditions, boost safety, increase roadway efficiency and support long-term economic growth in Michigan, according to a new report released today by TRIP, a Washington, DC based national transportation organization.

The TRIP report, Michigan’s Top Transportation Challenges: Meeting the State’s Need for Safe and Efficient Mobility,” finds that pavement conditions are projected to deteriorate significantly over the next decade under current transportation funding levels. And while the state has made progress in reducing the share of deficient bridges in recent years, the share of deficient bridges is expected to increase in the coming years due to a lack of funding. Failure to make needed improvements to Michigan’s transportation system could threaten the state’s economic recovery.

The percentage of Michigan’s major roads that are in poor condition increased significantly in recent years, from 23 percent in 2006 to 38 percent in 2014. By 2025, the share of major roads in poor condition is projected to increase to 53 percent. Driving on rough roads costs Michigan motorists a total of $4.8 billion each year in the form of extra vehicle operating costs, an average of $686 annually per motorist. These costs include accelerated vehicle depreciation, additional repair costs, and increased fuel consumption and tire wear.

Michigan has made progress in recent years in reducing the share of bridges that are structurally deficient.

However, under current funding levels, the share of structurally deficient bridges is expected to increase. The percentage of structurally deficient bridges decreased from 16 percent in 2006 to 12 percent in 2014. By 2023, the share of structurally deficient bridges is projected to increase to 14 percent. Bridges that are structurally deficient have significant deterioration of the bridge deck, superstructure or substructure. Sixteen percent of Michigan’s bridges are functionally obsolete, an increase from 2006, when 12 percent were functionally obsolete. Bridges that are functionally obsolete no longer meet modern design standards, often because of narrow lanes, inadequate clearances or poor alignment.

“Michigan drivers have a unique opportunity to address our deficient roads and bridges in a few weeks,” said Denise Donohue, director of the County Road Association of Michigan. “Proposal 1 will add $1.2 billion to road funding, and it will be constitutionally dedicated to roads. We won’t fully recover from our current band-aid approach to roads for several years, but passing Proposal 1 puts us on the right path.”

Traffic crashes in Michigan claimed the lives of 4,587 people between 2009 and 2013, an average of 917 fatalities each year. And Michigan’s rural non-Interstate roads have significantly higher rates of fatal crashes, with a traffic fatality rate of 1.76 fatalities per 100 million vehicle miles of travel, nearly two-and-a-half times the

0.75 fatality rate on all other roads and highways in the state.

Michigan’s economic recovery is threatened by increased road and bridge deterioration, freight bottlenecks and the lack of needed transportation improvements to serve economic development. The efficiency and condition of Michigan’s transportation system, particularly its highways, is critical to the health of the state’s economy. Annually, $520 billion in goods are shipped throughout Michigan, mostly by truck. The amount of freight, measured by weight, shipped annually throughout Michigan is expected to increase by 25 percent from 2015 to 2030, putting further stress on the state’s roads, highways and bridges.

The efficiency of freight delivery and personal travel in Michigan is being compromised by six significant highway bottlenecks. Relieving congestion at these bottlenecks will require significant investment to improve traffic flow at these locations. The top six highway bottlenecks in Michigan include the following: I-94 at I-75 and I-75 at I-696 in the Detroit area; I-96 at US 131 in the Grand Rapids area; I-69 at I-96 and I-96 at US 127 in the Lansing area; and I-94 at I-69 in the Port Huron area.

The Federal Highway Administration estimates that each dollar spent on road, highway and bridge improvements results in an average benefit of $5.20 in the form of reduced vehicle maintenance costs, reduced delays, reduced fuel consumption, improved safety, reduced road and bridge maintenance costs and reduced emissions as a result of improved traffic flow.

“Michigan’s road and bridge conditions are only going to get worse if greater funding is not made available at the local, state and federal levels,” said Will Wilkins, TRIP’s executive director. “Michigan has made tremendous strides to recover from a devastating economic downturn, but the deteriorating condition of the state’s roads and bridges threatens the state’s future economic growth.”

MICHIGAN’S TOP TRANSPORTATION CHALLENGES

Providing a Transportation System to Support and Sustain Michigan’s Economic Revival

Executive Summary 

As Michigan continues to recover from a devastating economic downturn, the condition, efficiency and safety of the state’s transportation system is likely to play a critical role in determining the extent and pace of the state’s re-emergence as a region with a strong economy and a desirable quality of life.

Since unemployment and population loss crested in 2010, Michigan has experienced steady economic and employment growth and seen its population stabilize and begin to grow modestly. But the state’s economic recovery is threatened by Michigan’s inability to address its transportation challenges. These challenges include deteriorating roads, highways and bridges, a lack of adequate traffic safety features, a lack of transportation facilities to support economic growth and quality of life, and a lack of adequate financial resources to address the state’s transportation challenges.

For Michiganders to enjoy an enhanced quality of life while the state sustains and accelerates economic recovery, Michigan will need to maintain and improve the condition of its roads, highways and bridges. Making needed improvements to the state’s transportation system will enhance its ability to provide efficient, safe and reliable mobility for residents, visitors and businesses.

Meeting Michigan’s need to modernize and maintain its transportation system will require a significant boost in local, state and federal funding.

TRANSPORTATION CHALLENGE: Deteriorated Pavement Conditions

The condition of locally and state-maintained roads and highways are deteriorating and are forecast to worsen significantly under current levels of funding. Repairing roads and highways while they are in good or fair condition greatly reduces long-term preservation costs because of the high cost of repairing roads in poor condition.

  • A report by the Michigan Transportation Asset Management Council (MTAMC) found that the percentage of Michigan’s major roads in poor condition has increased from 23 percent in 2006 to 38 percent in
  • 45 percent of Michigan’s major roads were rated in fair condition and the remaining 17 percent were rated in good condition in
  • Michigan’s major roads and highways (all arterial and collector routes) account for 37 percent of all lane miles of roadways in the state and carry 90 percent of all vehicle miles of travel in the
  • Under current funding, the MTAMC found that the percentage of major roads in Michigan in poor condition will increase to 53 percent by
  • Keeping roads in good condition by performing minor maintenance is far more cost- effective than waiting until roads are in fair or poor condition when it becomes far more costly to make needed.
  • Roads in good condition can be maintained by preventive maintenance, which costs approximately $85,000 per lane mile. Roads in mediocre or fair condition require resurfacing, which costs approximately $575,000 per lane mile. Roads in poor condition require reconstruction to repair the surface and the base under the road, which costs approximately $1,625,000 per mile – 19 times greater than the cost of preventive maintenance.
  • A Fall 2014 poll of local Michigan governments conducted by the Gerald R. Ford School of Public Policy at the University of Michigan found that a majority (52 percent) of the state’s local governments are only able to keep up with short-term road fixes such as filling potholes, as opposed to practicing long-term and more cost-effective preventive maintenance.
  • Driving on rough roads costs all Michigan motorists a total of $4.8 billion annually in extra vehicle operating costs (VOC), an average of $686 annually per motorist. Costs include accelerated vehicle depreciation, additional repair costs, and increased fuel consumption and tire

TRANSPORTATION CHALLENGE: Progress in Reducing Share of Deficient Bridges Threatened

Michigan has made progress in reducing its share of bridges that are rated structurally deficient, but under current funding levels, the share of Michigan’s locally and state- maintained bridges that are structurally deficient is expected to increase.

  • Twelve percent of Michigan’s locally and state-maintained bridges were rated structurally deficient in 2014. A bridge is structurally deficient if there is significant deterioration of the bridge deck, superstructure or substructure. A structurally deficient bridge may be posted for lower weight, restricting or redirecting large vehicles, including commercial trucks and emergency services vehicles, or it may need to be
  • Sixteen percent of Michigan’s locally and state-maintained bridges are functionally obsolete. Bridges that are functionally obsolete no longer meet current highway design standards, often because of narrow lanes, inadequate clearances or poor.
  • In 2006, 16 percent of Michigan’s bridges were rated structurally deficient and twelve percent were rated functionally.
  • Under current funding, the share of Michigan’s bridges rated structurally deficient is expected to increase to 14 percent by

TRANSPORTATION CHALLENGE: Improving Roadway Safety

Improving safety features on Michigan’s roads and highways would likely result in a decrease in traffic fatalities and serious crashes. It is estimated that roadway features are likely a contributing factor in approximately one-third of all fatal and serious traffic crashes.

  • Between 2009 and 2013 a total of 4,587 people were killed in traffic crashes in Michigan, an average of 917 fatalities per
  •  Michigan’s overall traffic fatality rate of 1.00 fatalities per 100 million vehicle miles of travel in 2013 is slightly lower than the national traffic fatality rate of 09.
  • Michigan’s overall traffic fatality rate of 1.00 fatalities per 100 million vehicle miles of travel in 2013 is slightly lower than the national traffic fatality rate of 09.
  • The fatality rate on Michigan’s rural non-Interstate roads was 1.76 fatalities per 100 million vehicle miles of travel in 2013, nearly two-and-a-half times higher than the 75 fatality rate on all other roads and highways in the state.
  • Roadway features that impact safety include the number of lanes, lane widths, lighting, lane markings, rumble strips, shoulders, guard rails, other shielding devices, median barriers and intersection design. The cost of serious crashes includes lost productivity, lost earnings, medical costs and emergency
  • Several factors are associated with vehicle crashes that result in fatalities, including driver behavior, vehicle characteristics and roadway features. TRIP estimates that roadway features are likely a contributing factor in approximately one-third of fatal traffic
  • Where appropriate, highway improvements can reduce traffic fatalities and crashes while improving traffic flow to help relieve congestion. Such improvements include removing or shielding obstacles; adding or improving medians; improved lighting; adding rumble strips, wider lanes, wider and paved shoulders; and better road markings and traffic signals.
  • Investments in rural traffic safety have been found to result in significant reductions in serious traffic crashes. A 2012 report by the Texas Transportation Institute (TTI) found that improvements completed recently by the Texas Department of Transportation that widened lanes, improved shoulders and made other safety improvements on 1,159 miles of rural state roadways resulted in 133 fewer fatalities on these roads in the first three years after the improvements were completed (as compared to the three years prior). TTI estimates that the improvements on these roads are likely to save 880 lives over the next 20 years

TRANSPORTATION CHALLENGE: Economic Recovery Threatened by Deteriorated Roads and Bridges, Freight Bottlenecks and lack of Modernized Highway and Transit Facilities

The efficiency of Michigan’s transportation system is critical to the recovery and health of the state’s economy. The state’s economic recovery is threatened by increased deterioration of Michigan’s roads and bridges and the lack of needed transportation improvements to serve economic development.

  • Michigan’s three largest economic sectors – manufacturing, agriculture and tourism – are highly reliant on an efficient and well-maintained transportation
  • More than half of Michigan local governments (58 percent) said that poor roads in their jurisdictions had a negative impact on economic development, in response to a 2014 Fifty-one percent said that poor roads had a negative impact on the fiscal health of local governments.
  • Michigan’s population increased by approximately eight percent between 1990 and 2005, from approximately 9.3 million to 10.1 million, before experiencing a slight decline through 2010 when the state’s population declined to approximately 9.9 (9.877) million people as a result of Michigan’s severe economic
  • Michigan’s population has achieved modest growth as the state’s economy has The state’s population rose from 9.877 million in 2010 to 9.909 million in 2014.
  • Michigan’s economy faltered during the latter half of the 2000s. Employment peaked at approximately 4.7 million jobs in 2005 resulting in an unemployment rate of 7.1 percent, before dropping to approximately 4.2 million jobs and an unemployment rate of 9 percent in 2010.
  • By January 2015, Michigan had added approximately 300,000 jobs, reaching approximately 4.5 million jobs, and the state’s unemployment rate dropped to 9 percent.
  • Annually, $520 billion in goods are shipped throughout Michigan, mostly by Seventy-eight percent of the goods shipped annually throughout Michigan are carried by trucks, another 21 percent are carried by rail, and the remaining freight shipped by water and air.
  • The amount of freight, measured by weight, shipped annually throughout Michigan is expected to increase by 25 percent from 2015 to 2030, putting further stress on Michigan’s roads, highways and
New international bridge crossing between Detroit and Windsor.
Improved intermodal truck-rail terminal and facilities in Southeast Michigan.
Modernizing and repairing portions of I-94 and I-75 in the Detroit area.
Improvements to Willow Run Airport in the Detroit area.
New rail tunnel between Detroit and Windsor to accommodate modern rail cars.
New intermodal rail/bus transit facilities in Troy/Birmingham, Grand Rapids, Dearborn, East Lansing, Ann Arbor and Detroit.
Completion of the M-1 Streetcar along Woodward Avenue in Detroit.
Construction of a second bus rapid transit line in the Grand Rapids area and a bus rapid Transit line in the Lansing area.
Improve and enhance public transit along the Woodward Avenue corridor from the Detroit riverfront to the city of Pontiac.
Improve and enhance public transit from northeast of Ann Arbor to south of Ann Arbor, connecting the campuses of the University of Michigan, downtown, the medical center, the train station and commercial areas.
  • The efficiency of freight delivery and personal travel in Michigan is being compromised by six significant highway bottlenecks, which are rated among the nation’s worst 250 highway bottlenecks. Relieving congestion at these bottlenecks will require significant investment to improve traffic flow at these
  • The American Transportation Research Institute reports that the top six highway bottlenecks in Michigan on highways that are critical to the nation’s freight delivery system are: I-94 at I-75 and I-75 at I-696 in the Detroit area; I-96 at US-131 in the Grand Rapids area; I-69 at I-96 and I-96 at US-127 in the Lansing area; and I-94 at I-69 in the Port Huron
  • Highway accessibility was ranked the number two site selection factor behind only the availability of skilled labor in a 2013 survey of corporate executives by Area Development magazine.
  • A number of critical transportation improvements that will improve the efficiency of Michigan’s transportation system are underway or are in the planning process. However, most of these projects will need significant additional funding to be completed. These projects include:
  • Because of a lack of adequate resources, the Michigan Department of Transportation (MDOT) plans to focus almost exclusively on preserving its current system rather than making any improvements to the system to support economic development
  • From 2015 to 2019, MDOT plans to spend an average of $671 million on road, highway and bridge repairs and only $4 million annually on expanding the capacity of the

TRANSPORTATION CHALLENGE: Inadequate Transportation Funding

Without a significant boost in transportation funding at the local, state and federal level, the condition of Michigan’s roads, highways and bridges will decline. This lack of funding will reduce economic productivity in the state and many projects needed to support economic growth and to support quality of life in Michigan will not move forward. New research indicates that the cost of making needed road, highway, and bridge improvements is far less than the potential loss in state economic activity caused by a lack of adequate road, highway and bridge preservation.

  • Upgrading all of Michigan’s major roads currently in poor or fair condition to good condition would cost $14.1
  • Seventy-nine percent of local Michigan governments said they would need a 50 percent increase in state funding for local roads just to maintain their roads in their current condition. And more than half (56 percent) said that state funding for local roads would need to more than double to allow them to improve the condition of their roads, in response to a 2014 poll.
  • The Federal Highway Administration estimates that each dollar spent on road, highway and bridge improvements results in an average benefit of $5.20 in the form of reduced vehicle maintenance costs, reduced delays, reduced fuel consumption, improved safety, reduced road and bridge maintenance costs, and reduced emissions as a result of improved traffi
  • Signed into law in July 2012, MAP-21 (Moving Ahead for Progress in the 21st Century Act), has improved several procedures that in the past had delayed projects, MAP-21 does not address long-term funding challenges facing the federal surface transportation program.
  • In July 2014, Congress approved the Highway and Transportation Funding Act of 2014, an eight-month extension of the federal surface transportation program, on which states rely for road, highway, bridge and transit funding. The program, initially set to expire on September 30, 2014, will now run through May 31, 2015. In addition to extending the current authorization of the highway and public transportation programs, the legislation will transfer nearly $11 billion into the Highway Trust Fund (HTF) to preserve existing levels of highway and public transportation investment through the end of May.
  • If Congress decides to provide additional revenues into the federal Highway Trust Fund in tandem with authorizing a new federal surface transportation program, a number of technically feasible revenue options have been identified by the American Association of State Highway and Transportation Officials (AASHTO).
  • A significant boost in investment on the nation’s roads, highways, bridges and public transit systems is needed to improve their condition and to meet the nation’s transportation needs, concluded a new report from AASHTO. The 2015 AASHTO Transportation Bottom Line Report found that annual investment in the nation’s roads, highways and bridges needs to increase from $88 billion to $120 billion and from $17 billion to $43 billion in the nation’s public transit systems, to improve conditions and meet the nation’s mobilit

A 2014 report by the Oregon Department of Transportation (ODOT) concluded that allowing the state’s major roads, highways and bridges to deteriorate would result in significant reduction in job growth and reduced state gross domestic product (GDP) as a result of reduced economic efficiency.

  • The ODOT report used a sophisticated model that integrates transportation, land use and economic activity to compare how an economy operates when a transportation system is well-maintained versus when it is allowed to deteriorate. The report found that deteriorated pavements, which result in a rougher and slower ride for vehicles, and deteriorated bridges, which need to be closed to heavy trucks, reduce economic productivity by increasing transportation
  • The report found that allowing roads and bridges to deteriorate reduces business productivity by increasing vehicle operating costs as a result of driving on rough roads, reducing travel speeds and increasing travel times because of route detours necessitated by weight-restricted
  •  As road and bridge conditions deteriorate, transportation agencies are likely to shift resources from preservation projects, which extend the service life of roads and bridges, to more reactive maintenance projects, which results in higher lifecycle costs, the report found. Transportation agencies are also likely to respond to increased road and bridge deterioration by shifting funds from modernization projects, which relieve congestion and increase business productivity, to maintenance
  • As road and bridge conditions deteriorate, transportation agencies are likely to shift resources from preservation projects, which extend the service life of roads and bridges, to more reactive maintenance projects, which results in higher lifecycle costs, the report found. Transportation agencies are also likely to respond to increased road and bridge deterioration by shifting funds from modernization projects, which relieve congestion and increase business productivity, to maintenance
  • The ODOT report estimated that the road, highway and bridge deterioration anticipated over the next 20 years will result in Oregon creating 100,000 fewer jobs and generating $9.4 billion less in state GDP.
  • Oregon could avoid losing 100,000 jobs and $9.4 billion in GDP through 2035 by spending an additional $810 million more on road, highway and bridge repairs – nearly a 12-to-1 return on investment, according to the ODOT

Sources of information for this report include the Federal Highway Administration (FHWA), the Bureau of Transportation Statistics (BTS), the U.S. Census Bureau, the American Association of State Highway and Transportation Officials (AASHTO), the Texas Transportation Institute (TTI), the Michigan Department of Transportation (MDOT), the Michigan Transportation Asset Management Council, the Gerald R. Ford School of Public Policy at the University of Michigan, the American Transportation Research Institute and the National Highway Traffic Safety Administration (NHTSA). All data used in the report is the latest available.