The purpose of this report is to analyze the economic impact of four possible scenarios that would increase funding for roads in Michigan by $1.4 billion per year. We explore the need for more road funding and look at the implications of different policies that would raise the necessary funds. The need for more funding for Michigan’s roads is based on an analysis of past road conditions and what future conditions would be if funding for repairs does not increase.
We analyze the net economic impact of four different scenarios for raising an additional $1.4 billion per year for road repairs, accounting for both the costs and the benefits to Michigan taxpayers of the four funding scenarios.
Overall, we find that the quality of Michigan’s roads will decline rapidly if more funding is not raised for additional repairs and maintenance. All four scenarios for increasing road funding in Michigan by $1.4 billion per year result in an increase of 11,000 or more jobs in the state. Spending an additional $1.4 billion on roads creates almost 25,000 direct and indirect jobs created by sustained road construction and maintenance expenditures. The net impact also includes approximately 14,000 lost jobs due to increased motor fuel taxes and/or vehicle registration taxes.
The purpose of this paper is to compare the NITC and DIBC proposals, identifying the key factors affecting policy makers, investors, and taxpayers. To date, public discourse about the options has been hampered due to lack information about the proposals, including project viability, financing, and taxpayer risk.
The Consultants at Anderson Economic Group have completed this study independently in order to provide an unbiased source of information on the topic.
October 1, 2008 If games are awarded, what can the city do to maximize long-term economic benefits? Chicago, IL-Topografis, along with Anderson Economic Group, has released a report titled “Land Use and Infrastructure Investments by Olympic Host Cities: ‘Legacy’ Projects and Long-term Economic Benefits.” The report assesses both Chicago’s bid and the performance of past […]
On Friday, October 2nd, the International Olympic Committee (IOC) will select a host city for the 2016 Summer Games. The City of Chicago has submitted an extensive and thoughtful bid book that proposes a compact games centered on the lakefront and embracing the diversity of the city. Many cities would welcome the opportunity to achieve global recognition, and while the Olympics accelerate that opportunity, not every city is well-equipped to host the Games.
Chicago 2016’s bid book includes a thorough budget for hosting the Games. However, it does not elaborate on costs, or revenue sources, associated with improvements to municipal infrastructure, such as roadways, airports, public transportation, public spaces, and telecommunications. These projects are simply said to occur as part of the city’s “natural growth.” Simply following the path of natural growth, however, would result on a significant missed opportunity to fully leverage the Olympic Games.
In this paper we address the issue of long-term land-use and infrastructure projects (legacy projects) that Olympic host cities commonly undertake, and the potential economic benefit of these legacy projects. This builds upon another recently released paper on the topic of the Olympics and their economic impacts—The Likely Economic Impact of a Chicago 2016 Summer Olympics—that was authored by one of this paper’s co-authors. That paper focused solely on the economic impacts that the games, as presented in Chicago 2016’s bid book, would likely have on the city and county. This paper goes a step further and discusses strategies for maximizing public investments so that projects commissioned prior to the Olympics create long-running economic value within the city.
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