Factors Influencing State Road Project Prioritization in Michigan (Phase I)

Business Leaders for Michigan retained Anderson Economic Group to analyze Michigan’s state road funding project prioritization practices and determine the extent to which the state considers economic impacts in determining which road projects to fund.

We collected information from the Michigan Department of Transportation, Michigan House Fiscal Agency, and Michigan Senate Fiscal Agency to identify how state road funds are distributed and which factors most strongly influence the road project selection process. We also conducted a literature review to identify best practices for prioritizing road projects in other states. We found that the most important factors in Michigan’s state road prioritization process are road usage, road conditions, and asset management principles. We also found that the state does not explicitly economic impact analysis to choose road projects, although factors such as road usage may serve as an indirect measure of economic impact.

We summarized our findings in a memorandum that was provided to the client.