Construction trade group warns of funding cliff, potential job losses and supply‑chain drivers of higher road costs

Lance Ben Onini, vice president of government affairs for the Michigan Infrastructure and Transportation Association (MITA), told the House Transportation and Infrastructure Committee that Michigan faces a long‑term funding shortfall and that the state risks losing skilled construction jobs if the funding cliff is not addressed.

“We have inherited a large funding crisis because of decades of underinvestment,” Ben Onini said, summarizing the group’s position. He told members that the Transportation Asset Management Council’s 90% good/fair condition goal is not being met: MITA cited a current statewide average of about 67% good/fair condition, leaving roughly a third of pavement in poor condition.

MITA presented a widely cited estimate that achieving and sustaining a 90% good/fair condition across Michigan would require roughly $3.9 billion in additional annual investment. Ben Onini summarized results from modeling the state trunk‑line network and noted state and federal short‑term investments such as the federal Infrastructure Investment and Jobs Act (IIJA) and the governor’s multi‑year bonding program will not fully close the gap beyond 2026.

The association also warned of near‑term workforce consequences if the state’s funding cliff continues. Ben Onini said initial member surveys show “we're counting at least 7,000 jobs lost in the next 3 years” if construction demand declines and companies reduce payrolls; he emphasized these are skilled, often union or benefits‑provided positions.

MITA identified several drivers of higher road construction costs: long permitting delays and denials for local aggregate (sand and gravel) pits that force contractors to haul material long distances, pandemic-era logistic disruptions, Buy America requirements that affect materials supply, and rising trucking costs. On permitting, Ben Onini told the committee that local zoning and litigation frequently delay or deny permits that would allow local aggregate access, increasing transport distances and project costs.

The association reviewed revenue levers in use nationwide, noting Michigan is one of five states that apply sales tax to motor fuel and that the state also uses registration fees and motor fuel excise taxes. Ben Onini and slides presented by MITA said the state gas tax is roughly 31¢ per gallon (presentation described a prior increase and indexing), the federal tax is 18.4¢ per gallon, and that sales‑tax “switch” proposals appearing in both the governor’s and Speaker’s plans are areas of overlap the association views as potentially significant.

Mitigation proposals MITA described include expanding access to aggregates to reduce material and hauling costs, targeted revenue increases and indexing, and reforms to procurement and permitting. Ben Onini said MITA continues an education campaign and member polling under the “Fix My State” banner to build public support for long‑term solutions.

Ending: MITA urged lawmakers to pursue a long‑term, sustainable funding package and to address permitting, materials access and workforce measures promptly to avoid projected job losses and escalating reconstruction costs.