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Article
Affiliation(s)

Spy Pond Partners, LLC, Arlington, MA 02474, USA

ABSTRACT

In 1997 the Michigan Department of Transportation (MDOT) established an ambitious set of condition targets for its pavements and bridges, and the Department received increased revenue from a 4-cent-per-gallon increase in the state motor fuels tax to help meet its targets. However, over time, actual revenue was less than both what was initially estimated as needed to meet the targets and what was projected from the tax increase. Consequently, actual conditions were projected to fall short of the target levels, so the department issued bonds to address the shortfall through 2012. To support deliberations on future funding, in 2013 MDOT performed an analysis of historic conditions to determine what additional fuel tax revenues would have been required beginning in 1997 to: replace bond revenues used to fund pavement and bridge projects from 1997 to 2012; and enable MDOT to meet its condition targets. The analysis was performed using data on actual pavement and bridge funding and conditions; as well as predicted funding and conditions for different hypothetical increases in fuel taxes. The analysis concluded that, in addition to the actual increase of 4 cents per gallon, a fuel tax increase of another 10 cents per gallon would have been required in 1997 to replace bond revenue used for pavement and bridges and allow MDOT to meet its condition targets. The analysis results were used to help inform the discussion of Michigan’s target asset conditions and funding, and demonstrate application of MDOT’s pavement and bridge management systems for performing historic analyses.

KEYWORDS

Transportation asset management, transportation finance, performance measures, pavement management, bridge management.

Cite this paper

Journal of Traffic and Transportation Engineering 12 (2024) 107-118 doi: 10.17265/2328-2142/2024.03.001

References

[1]   Michigan Department of Transportation. Highway/Bridge White Paper: 2035 MI Transportation Plan - State Long-Range Transportation Plan. MDOT, 2012. Available online at the following URL (accessed July 2013): http://www.michigan.gov/documents/mdot/MDOT_HighwayBridgeWhitePaperFinal_397580_7.pdf.

[2]   Galehouse, L. “Strategic Planning for Pavement Preventive Maintenance: Michigan Department of Transportation's ‘Mix of Fixes’ Program.” In TR News, No. 219. TRB, 2002.

[3]   Michigan Department of Transportation and Wilbur Smith and Associates. Michigan Department of Transportation State Long Range Transportation Program 2005-2030: Highway/Bridge Technical Report. MDOT, 2006.

[4]   Gordon Proctor & Associates, StarIsis Corp., and Spy Pond Partners, LLC. The Road Not Taken – Michigan’s Highway Funding Decisions: Lessons from the Past and Implications for the Future. MDOT, 2013. Available online at the following URL (accessed July 2013): http://www.michigan.gov/documents/mdot/MDOT_ReportRoadNotTaken-5_13_13_v2_423606_7.pdf.

[5]   Wong, Lawrence. “A Brief Reference on Fuel Costs and Fuel Price Elasticity.” In Policy Notes, Vol. 5, No. 1. Oregon Department of Transportation, 2001.

[6]   Poor, Aaron. Fuel Price Elasticity: Synthesis. Technical report prepared for the Washington State Department of Transportation, 2007.

[7]   Michigan Department of Transportation. Road Quality Forecasting System. MDOT, 2000. Available online at the following URL (accessed July 2013): http://www.michigan.gov/documents/roadquality_19998_7.pdf.

[8]   Hearn, G. Transportation Asset Management Case Studies: Bridge Management: Practices in Idaho, Michigan, and Virginia. Report No. HIF-12-029. FHWA, 2012.

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