MDOT director warns of funding cliff as department responds to unprecedented northern Michigan ice storm

Director Brad Wafrich, director of the Michigan Department of Transportation, told the State Transportation Commission on April 24 that the department expects a drop in program capacity as the Rebuilding Michigan bond program winds down and federal funding uncertainties loom, and he gave an update on a widespread late‑March ice storm that shut the Mackinac Bridge and damaged infrastructure in parts of northern Lower Michigan.

The commission heard that MDOT is still executing large, bond‑funded projects in 2025 but that annual program averages will be lower once bond spending declines and the federal Infrastructure Investment and Jobs Act requires reauthorization in 2027. Wafrich also described a recent statewide construction‑cost surge that reduced the department’s purchasing power.

Wafrich said MDOT’s five‑year program shows a large near‑term workload driven by rebuilding Michigan bond projects and that the department is delivering “almost $1,700,000,000” in repair and rebuild work in 2025 on the trunk‑line system. He noted the five‑year annual average is closer to $950,000,000, reflecting the temporary boost from bond proceeds. “From 2020 to 2022, 23, I believe it was about a 30% or more increase in inflation over that time line. So that means that we could do roughly 1/3 less work with the same amount of money,” Wafrich said.

Why this matters: the mix of one‑time bond funding and higher construction costs means MDOT’s ability to maintain and rebuild trunk lines will change after the bond program completes. The department also faces an uncertain federal authorization schedule and a governor’s executive recommendation for the 2026 budget that, if enacted, would provide additional state matching to draw federal funds.

Key details and context

- Rebuilding Michigan: Wafrich said the bond program remains active and about two‑thirds of its projects are 90% or more complete. About $700,000,000 of the original roughly $3.5 billion program remains to be sold to the market, and two large projects remain to be bid later this summer or fall.

- Construction costs: MDOT contracted Western Michigan University to develop a Michigan highway construction cost index that showed pre‑COVID programming assumptions (about 4% inflation per year) were in the right range, but the pandemic and supply disruptions produced a sharp price spike. Wafrich warned that the recent inflationary period reduced the effective mileage MDOT could pave with fixed dollars.

- Federal funding and state budget: Wafrich said the department is monitoring the timing of IIJA reauthorization (he used the federal acronym IIJA) and noted the governor’s executive recommended budget totals about $6.8 billion for transportation, with a significant portion from federal aid and a proposed $112,000,000 state contribution to preserve federal matching capacity.

- Road usage study: the governor’s recommendation includes funding for a road‑usage charging study as Michigan evaluates long‑term alternatives to shrinking fuel‑tax revenues amid more fuel‑efficient and electric vehicles.

Ice storm and Mackinac Bridge

Wafrich described a late‑March ice storm that affected much of northeastern Lower Michigan. He said 12 counties declared emergencies after heavy ice accumulation knocked down power lines and poles across wide areas. “The Mackinac Bridge… was closed for over a day. Nobody ever remembers seeing ice like this before,” Wafrich said. He credited county crews, utility companies, DNR personnel, the National Guard and out‑of‑state DOT crews with a large mutual‑aid response.

Wafrich noted that the department’s maintenance crews and partner agencies remain engaged in cleanup and restoration and thanked staff for “boots on the ground” efforts. He said thousands of new utility poles were being delivered to affected areas and that restoration work was ongoing.

Work Zone Awareness Week

Wafrich closed by noting it was Work Zone Awareness Week and announced a press event at 11 a.m. next Monday at Dow Diamond in Midland. He asked motorists to exercise care in work zones and recognized the safety risk to workers.

Commission discussion and follow up

Commissioner Suzanne Holtz asked about the origin of the commission’s 90% “good and fair” trunk‑line condition goal. Wafrich and Chair Hayes said the target originated in the late 1990s during an earlier asset‑management and fuel‑tax discussion and that the commission can revisit whether the target remains realistic as part of future business. Chair Hayes invited commissioners to raise the question during upcoming budget discussions.

The presentation did not include new formal actions by the commission; commissioners asked questions and thanked staff for storm response.