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Wed July 2, 2014
Road-funding trouble in D.C. could be bad for Michigan
There was much anger and disappointment last month when state lawmakers failed to figure out a way to fund badly needed road repairs before leaving for their summer break.
And now there's road funding trouble ahead in Washington, D.C. Federal gas taxes go into the Federal Highway Trust Fund. The money is handed out to states in the form of road construction payments.
Michigan gets more than $1 billion a year from the trust fund. But that could come to a screeching halt before the summer is out.
Mlive's Jonathon Oosting wrote that the fund is running low due to declining fuel tax revenue, and could be fully depleted by late August or September.
“The federal government is already making plans to scale back payments to states such as Michigan, if Congress doesn’t figure out a way to replenish this fund,” Oosting said.
The fund is not collecting as much money as it used to from gas taxes, as people are driving more fuel-efficient vehicles, or opting out of driving in favor of public transportation.
*Listen to the full interview above.
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