LANSING – The Canadian government’s offer of $550 million for the state’s portion of the New International Trade Crossing isn’t the only money the Snyder administration is seeking in regards to federal match money related to the new bridge, Lt. Governor Brian Calley said Friday.
Calley told Gongwer News Service the administration hasn’t rolled out a final draft bill because it was working with the federal government to see if construction of the public-private partnership bridge crossing could qualify for more federal matching transportation dollars and they just got confirmation there are ways Michigan can pursue that route.
Construction of the new bridge could qualify the state for another $475 million in federal matching transportation dollars, but that would be spread out over more than one fiscal year. Money from the Canadian government is expected to be used on Michigan’s interchange and plaza portions of the new bridge, Calley said.
Lt. Governor Brian Calley said the new bridge could provide nearly $1 billion for the state in terms of federal matching money.
The state currently has been unable to meet its federal match for transportation dollars because of a decline in gas tax collections, but Calley estimated that, conservatively, the bridge’s construction could help the state out in that regard for another five years. He said the use of toll credits from the new bridge would also be a factor in how long that funding mechanism could carry the state.
Calley said the administration is still reviewing the proposal by the owners of the Ambassador Bridge to use its toll credits for the federal match (although the bridge owners have said that offer is contingent on the state halting what is now the NITC). He said use of any toll credits to draw down federal matching dollars hinges on the state meeting federal maintenance of effort requirements on roads and bridges, which Michigan hasn’t accomplished for most of the past decade.
The administration is not giving a deadline for the Legislature to review its bridge bill, a final draft of which is expected next week, but Calley said everyone would like to see this question of a new bridge resolved sooner rather than later.
The bill is expected to include an authority structure similar to the Mackinac Bridge Authority, Calley said, although lawmakers still appear to be seeking more oversight of the new crossing.
“(Authorities) are not a panacea and they carry with them or own set of potential risks,” said House Transportation chair Rep. Paul Opsommer (R-DeWitt). “Past legislation would have taken power away from the Legislature and given it to MDOT. If that power is still taken away from the Legislature and is instead just given up to an MDOT authority instead of MDOT directly, you could actually end up worse off depending on what powers that authority is given.”
Calley said the authority’s role would be determined by the Legislature but is essentially aimed at ensuring the private company running the bridge lives up to its obligations through the concessionary process. He said if legislators want complete authority over the bridge, it should be built entirely by the government.
“If we want to essentially control and operate the bridge, we have to build the bridge ourselves,” Calley said. “I don’t think that’s the right approach.”
Calley said the administration simply wants to see a private sector bridge that is subject to competition through the bidding process.
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