Michigan to Curb Road Projects; Gas Tax Revenue Falls

By: The Associated Press
By: The Associated Press

DETROIT (AP) -- Michigan's road construction budget is running out of gas.

The Detroit News says the state could see its road construction budget cut in half by 2012, taking with it scores of repair projects and thousands of jobs.

State officials say falling gas tax revenues during the last decade are to blame, caused in part by better gas mileage and fewer miles driven.

The state projects a $626 million repair budget for 2012, compared to $1.4 billion spent in 2010.

Michigan Department of Transportation spokesman Bill Shreck says a one-year, $40 million loan helped the state avert the same fate in 2011, when it faced an $84 million budget shortfall. He said the move only deferred the problem until 2012, when MDOT is expected to face a $120 million financial hole.

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