Resolve, unity, vision essential to reverse Michigan’s population crisis
DETROIT – Jeff Donofrio, president and CEO of Business Leaders for Michigan, Sandy K. Baruah, president and CEO of the Detroit Regional Chamber, and Brian Calley, president and CEO of the Small Business Association of Michigan, as leaders of Michigan’s business community and members of the Growing Michigan Together Council, have released a statement in response to the Council report issued today.
“The Growing Michigan Together Council Report makes the compelling case that Michigan is in crisis. It is an urgent call to action to unite behind a common vision for our state’s growth that will improve the lives of current residents as well as those who will return home or choose to live in this great state.
“We, as business leaders, have long advocated for cohesive, holistic solutions to address Michigan’s population crisis that can withstand disruptions, transcend politics, and initiate lasting improvement. Getting population trends back on track is critical to ensuring our state’s economic prosperity, political influence, and competitiveness. The risk is greatest if we do nothing.
“We are encouraged by the report’s focus on three interwoven and visionary strategies around education, the economy, and our communities. These are a set of guiding principles that, when developed and implemented, have potential to impact and change Michigan for the better.
“This is a unique opportunity to chart the course of our collective future, one that values and supports all Michiganders. The status quo won’t get us where we need to be. We must approach these challenges differently and come together to create the Michigan we want for today, tomorrow, and generations to come.”
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About Business Leaders for Michigan
Business Leaders for Michigan, the state’s business roundtable, is dedicated to making Michigan a Top 10 state for jobs, education, widely shared prosperity and a healthy economy. Our work is guided by the Compete to Win Plan, a comprehensive strategy for how government, community, education and business leaders can improve Michigan’s growth. The organization is composed exclusively of the executive leaders of Michigan’s largest companies and universities. Our members drive 40% of the state’s economy, generate over $1 trillion in annual revenue and serve more than half of all Michigan public university students. Find out more at businessleadersformichigan.com
About the Detroit Regional Chamber
Serving the business community for more than 100 years, the Detroit Regional Chamber is one of the oldest, largest, and most respected chambers of commerce in the country. As the voice for business in the 11-county Southeast Michigan region, the Chamber’s mission is carried out by creating a business-friendly climate and providing value for members. The Chamber also executes the statewide automotive and mobility cluster association, MICHauto, and hosts the nationally recognized Mackinac Policy Conference. Additionally, the Chamber leads the most comprehensive education and talent strategy in the state. Learn more at detroitchamber.com.
About the Small Business Association of Michigan
The Small Business Association of Michigan focuses solely on serving the needs of Michigan’s small business community through advocacy, collaboration and buying power. Today they serve more than 32,000 members in all 83 counties of Michigan. SBAM is located in Lansing, just one block from the Capitol.
Growing Michigan Together Council urges Michigan’s leaders to take significant action to fund and fix our roads
LANSING, Mich. – The Growing Michigan Together Council (GMTC) released their recommendations today following more than five months of work gathering data, listening to expert presentations, reviewing survey feedback, and collaborating with workgroups. The recommendations, with infrastructure being a core component, provide a starting point for Michigan’s leaders to make significant change in public policy that will improve the state to attract future generations to make Michigan their home.
“These recommendations highlight just how far we need to go to get our core infrastructure, the roads and bridges that millions of Michiganders rely on, back on track for generations to come,” said Rob Coppersmith, Executive Vice President of the Michigan Infrastructure & Transportation Association (MITA), who also served as a member of the Growing Michigan Together Council. “If we are going to succeed in being a thriving, growing state that attracts and retains population, Michigan must make the needed investments to fund and fix our roads and end the decades of disinvestment that have set Michigan backwards.”
The GMTC was charged with developing actionable recommendations that support Michigan’s population growth through investment in needed areas, including Michigan’s infrastructure network. The council is comprised of a broad range of stakeholders with diverse backgrounds who are all invested in Michigan’s future. The GMTC acted in an advisory role to the governor and the director of the Department of Labor and Economic Opportunity to identify concrete, data-driven, and evidence-based goals among several significant issues facing Michigan, including developing a long-term, equitable, and sustainable infrastructure investment plan.
“The council identified major problems facing the state, and the $3.9 billion annual funding deficit facing our roads and bridges is one of the biggest,” said Coppersmith. “The data makes it clear that it’s time we take our infrastructure funding crisis seriously, and the consequences of not doing so will cost us even more each year we fail to act.”
The council recommendations highlight the need to reverse decades of disinvestment in Michigan’s roads. The 21st Century Infrastructure Report found in 2016 found that Michigan faced an annual road finding deficit of $2.1 billion. In 2017, Michigan’s gas tax increased slightly for both gas and diesel. Additionally, Michigan received a one-time funding allocation from the federal Infrastructure Investment and Jobs Act (IIJA), and the 2019 Rebuilding Michigan Program (RBMP) in one-time bond funding for state and federal roads. The 2023 Michigan Infrastructure Report Card gave our overall infrastructure network a grade of C- and our roads a D, even after these funding increases. Making matters worse, the 2023 PSC report commissioned by MITA found that none of these increased investments have been enough, and the infrastructure funding gap has grown to $3.9 billion. The funding increases seen in recent years are expected to drop off in 2026, leading to a scenario where gains realized in recent years will be lost if we don’t close the $3.9 billion investment gap.
The council recommended an array of solutions to consider closing the investment gap to fix and fund Michigan’s roads, including:
- Future proofing our physical infrastructure to ensure that Michigan is investing in our communities in a way that ensures that our infrastructure can adapt to an ever-changing climate;
- Examine alternative funding sources that make funding our roads equitable, ensuring that road funding is not threatened by the decreasing revenue from the gas tax as more drivers transition to hybrid and electric vehicles. Alternative funding sources include vehicle miles travel fees, tolling, and better utilization of public-private partnerships;
- Better leverage opportunities for federal investments and state-federal partnerships in community driven solutions that can help prevent flooded highways and streets, like we’ve experienced in southeast Michigan in recent years;
- Incentivize state and local entities responsible for infrastructure to coordinate their efforts through service sharing agreements or consolidation of local services to better coordinate infrastructure projects that cross jurisdictional lines.
“We look forward to working with the governor and our partners in the legislature to turn these recommendations into solutions over the coming year,” said Coppersmith. “Michigan’s need is clear, it’s time we enact a long-term, equitable, and sustainable infrastructure investment plan that will finally dedicate the resources to improve our roads and bridges that our friends and families rely on to get to school, work, and their homes. We can’t address the many challenges Michigan faces with housing, education, and transit without quality infrastructure in place. Michigan’s time is running out, we must act now to fund and fix our roads.”
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The Michigan Infrastructure & Transportation Association is a statewide trade association that represents a broad spectrum of heavy construction companies and suppliers that help build a better Michigan from the ground up. For more information, visit thinkmita.org.