As the state’s budget woes continue, the Michigan Department of Transportation announced Thursday it would delay hundreds of road projects because of dwindling resources.
The state could see road construction spending go from about $1.4 billion this year to less than $600 million in three or four years, the Lansing State Journal reports. The state can’t spend the $1.4 billion because of American Recovery and Reinvestment Act, or stimulus, cash from the feds. That money is gone.
Making matters worse, if state revenues continue to plummet, the state may be unable to leverage matching funds to bring in other federal dollars. That’s why some lawmakers on Tuesday introduced legislation to increase the state’s gas tax.
Watch for the issue of generating new revenues versus cuts only budgeting to become more and more prominant in Lansing as lawmakers and Gov. Jennifer Granholm square off for her final budget battle as governor.
Adding spice to this year’s battle, which is likely to be a re-hash of last year’s, will be that many of the politicians making the budget decisions this year are term limited, seeking higher office, bitterly partisan, or all the above.