Mich. faces losing federal transport funds

Mich. faces losing federal transport funds    The federal trust fund shortfall for highway aid to states is being compounded at the state level by the recession and a decline in tax receipts needed to maintain transportation networks.
   That problem resulted Thursday in Michigan's Transportation Commission adopting a unanimous resolution urging the legislature to address a projected state transportation-funding deficit by taking steps recommended last November by a bipartisan Transportation Funding Task Force.
   The Michigan Department of Transportation (MDOT) is expected to run out of money to match all available federal highway funding, beginning in the department's 2011 fiscal year. The revenue shortfall will result in the loss of as much as $2.1 billion in federal aid during the following four years, and jeopardize about 30,000 jobs.
   The task force and the commission noted that Michigan needs to at least double its current investment in transportation to prevent a loss of up to $1 billion in federal funds each year and to adequately maintain the state's highways, roads, bridges, freight transportation and aviation systems.
   MDOT said it needs an additional $320 million per year to maintain state highways in their current condition.
   State gas tax revenues have dropped $100 million in the last five years while road construction costs have escalated five-fold.
   Congress recently bailed out the Highway Trust Fund with money from the general Treasury.