Michigan Transportation Infrastructure Needs and Funding Solutions

March 8, 2023

In 2016, Michigan’s 21st Century Infrastructure Commission found that the state needs to spend an extra $2.2 billion every year on roads and bridges to reach its quality targets. When we include the needs of other transportation methods like bus transit, passenger trains, and freight, the total annual amount needed goes up to $2.6 billion.

In 2022, the Michigan Infrastructure and Transportation Association (MITA) approached Public Sector Consultants to update the transportation infrastructure estimates in the 21st Century Infrastructure Commission report and review potential solutions to fill the long-term funding gap.

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About Our Analysis

This report outlines the costs to maintain Michigan’s road network, current road funding estimates and revenue sources, as well as potential options for raising additional revenue to close the funding gap. In developing the estimated funding gap, PSC found:

Michigan’s transportation system needs are likely higher than previous estimates
Investment in recommended maintenance can save Michigan residents money
Michigan has set a standard of maintaining roads at a 90% good and fair condition level, which has not been accomplished on a sustainable level because of a lack of funding, and it will cost more to bring the system up to standard.
There is a $3.9 billion annual funding gap—and depending on the maintenance approach, that funding gap could be much bigger