Absent Long-Term Funding Plan

The Department of Transportation (MDOT) still plans to move forward with the rest of the overnor's $3.5 billion road bonding plan unless the Legislature comes forward with a long-term sustainable revenue source to replace the bonding proceeds, an MDOT official told a House committee Wednesday morning.

Some Republican legislators questioned last week the need to continue the bonding since the state is receiving around $5 to $6 billion in infrastructure dollars from the federal government. But during Wednesday's House Appropriations Transportation Subcommittee, MDOT Finance Director Patrick McCarthy said there's 49 specific projects the department is paying for on a cashflow basis.

So far $1.6 billion has been issued to pay for the projects, which includes the work on I-496 and Interstate 69 in the Lansing area.

McCarthy said that because of premium market conditions and Michigan being seen as a safe, attractive place to invest, Michigan is bringing in more money than projected, meaning the full $3.5 billion may not need to be issued.

"I don't want to issue more principal than what we need," he said.

MDOT is planning -- weather permitting -- to issue the third phase of the four-phase project later this year to keep those projects rolling.