Most experts agree putting more electric vehicles on the road is a major step toward fighting climate change, but a new report says states will also need to find new ways to fund road maintenance.
Currently, Michigan pays for road construction with a tax on gasoline and diesel, but as more electric vehicles take to the road, the highway fund is expected to shrink by tens of millions of dollars.
Report author Patrick Anderson, CEO of the East Lansing-based Anderson Economic Group, warned that unless lawmakers devise a new formula to pay for upkeep, Michigan's already-crumbling roadways will only get worse.
"For a lot of people who make a switch to an electric vehicle, they're paying $100 or $200 less a year in road taxes, but they're putting more weight on the road," he said. "That's a big, big switch, and something that has significant consequences for our ability to maintain our roads."
Anderson said EV owners now pay $140 a year in fees, while gas-powered vehicle drivers pay about $400 in fees and fuel costs. By 2030, he said, that could mean fewer tax dollars for the state, by hundreds of millions.
Anderson said a 2021 survey of Michigan roads and highways found that one-third of them were rated "poor," with only one-quarter in "good" condition. Michigan is slated to get $2.4 billion for transportation projects from the Bipartisan Infrastructure Bill over the next five years, but Anderson said the state needs a longer-term solution for its roadway upkeep.
"The report doesn't recommend that people either buy or don't buy an EV - I drive one myself - but they're not telling people what kind of car they should drive," he said. "We are saying that these decisions have consequences and that, right now, electric-vehicle drivers are not paying the same to maintain roads."
The report outlined several suggestions for EVs, including higher registration costs, mileage-based fees, a fee charged per kilowatt hour and a "miles fee" calculated during annual registration or by toll roads. Currently, eight other states are testing pilot programs to equalize the maintenance fees paid by all vehicle owners.
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One Arizona mayor is among the more than 2,800 elected city officials in Washington, D.C., this week for The National League of Cities' Congressional City Conference.
The conference is an opportunity for local leaders to meet with federal officials to discuss how federal policies make their way to local governments.
Roberta Cano, mayor of Winslow, said it is her second time attending the conference, which she called a "springboard" for projects in her community, one of which is a levee Winslow is trying to improve after being decertified by the Federal Emergency Management Agency in 2008.
She noted with the help of leaders at the Capitol, they have started the process to get the levee fixed.
"We were able to have a strong enough voice to get awarded $66 million to start the design and process to get our levee fixed," Cano reported. "Once that is repaired and is certified and all to protect our city, our economy is just going to boom."
Cano pointed out since the decertification of the levee, 90% of Winslow residents have had to get flood insurance on top of their regular home insurance, which she added has put a hefty financial burden on many.
Cano emphasized events such as the conference offer smaller cities like hers the ability to learn about federal funding and programs which otherwise would have gone unknown. Cano added it is a great chance to get to speak with other local leaders about the challenges they are facing and the solutions they are implementing.
"I pick everybody's brain as much as I can to deal with issues like recycling and housing, and even our fentanyl drug issues," Cano stated. "You want to talk about the most dynamic people in one setting, come to this conference, and you will just feel this energy. It'll blow you away."
Cano and other mayors will head to the Capitol today to meet with federal leaders and share infrastructure plans, following the recent two-year anniversary of the American Rescue Plan.
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A Minnesota bill could surface as early as this week, calling for a proposed tax increase to fund transportation needs.
Advocates and local government leaders hope lawmakers hear calls from the public to offer a range of options for residents to get around.
Transportation remains one of the issues still being debated in the current legislative session.
Sam Rockwell, executives director of the group Move Minnesota, said its recent polling indicates a majority of Minnesotans want to see more flexibility in how transit funds are spent.
"We saw 66% of Minnesotans," said Rockwell, "supporting shifting funding to support biking, walking and transit."
About 55% said they would support a regional sales tax to fund metro-area transit improvements. That's one of the recommendations from Rockwell's group to boost options.
While Democrats control the Legislature and the governor's office, it's unclear how transportation funding will come together. Republicans blocked a bonding bill, which included money for things such as walking trails, citing the need for tax relief first.
Bloomington City Council Member Patrick Martin said providing more efficient and accessible transportation options can help in a variety of ways, including helping business corridors.
"The development possibilities it opens up," said Martin, "knowing, you can say, reduced parking because there's reliable transportation nearby."
Nearly one third of Minnesotans said they would be more likely to use buses and trains if there were greater access in their neighborhoods.
Rockwell suggested that following up on that demand could help reduce emissions and personal budgets, because people wouldn't have to rely on cars as much.
"Being able to rely on your feet, on a bicycle, on the bus and the train," said Rockwell, "brings those transportation costs down."
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The transportation and warehousing industry continues to lead as Indiana's fastest-growing business sector, and has been for over a decade now, but the companies, like many others, don't have enough employees.
The Indiana Business Research Center at Indiana University said despite hiring bonuses and "help wanted" signs posted at trucking companies, too many jobs remain unfilled.
Carla Rogers, director of the center, said at the onset of the pandemic, the demand for goods could not keep up with the low supply of workers.
"We suddenly started getting more and more stuff delivered," Rogers recounted. "Instead of going to a store, we were getting it delivered. That needed more trucks, more truck drivers, more people in the warehouses to do the stocking."
Rogers pointed out Indiana's Department of Workforce Development has received federal money to create "WorkOne," an online center arranged by county where people can get information on choosing or changing a career, job training and apprenticeships.
She is also optimistic Indiana will continue to offer a "high school to community college to commercial training" pipeline for the next generation of workers in these fields.
Rogers thinks the trucking industry still has some barriers to address, to help people understand truck driving can be not only a safe experience, but also a well-paid career.
"We really ought to be looking at women, young people and people of color," Rogers urged. "These are the folks that could really benefit by what trucking is doing - and also train people up to become digitally literate."
According to the Business Research Center, between 2011 and 2021, Indiana's transportation and warehousing sector grew by almost 37%, adding more than 46,000 jobs, bringing the total number of statewide transportation and warehousing jobs to more than 171,000.
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