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MITA NEWS
The Board of Directors of the Michigan Infrastructure and Transportation Association (MITA) has elected Brian Slagter, President/CEO of Slagter Construction to serve as President of the Association in 2007. MITA is the result of a merger between the Association of Underground Contractors (ACU) and the Michigan Road Builders Association (MRBA) that occurred in 2005.
MITA serves the heavy construction industry by providing safety services, member services and legislative affairs concerning the heavy highway and underground industries.
Pinehurst, N.C.
TRIP - A transportation research group based in Washington D.C. has bestowed the position of Chairman Emeritus to Brian Slagter, President/CEO of Slagter Construction. Mr. Slagter received this honor from the TRIP Board of Directors at the conclusion of his chairmanship of the organization in January, 2006.
LAWMAKERS URGED TO ACT ON FUEL TAXES 'BEFORE TOO LATE'
Construction company executives urged the Legislature to enact increases to
Michigan's fuel and registration taxes "before its too late" to help rebuild
the state's infrastructure and revive the state's economy. But lawmakers,
who said the public response to the proposed tax increases is negative so
far, asked if there were other avenues that could help raise revenues or
maximize the revenues the state now receives.
The House Transportation Committee did not take action Thursday on HB 4575*,
HB 4576* and HB 4577* which would boost the state's gas and diesel fuel
taxes by nine cents and increase the state's registration fees by 50
percent.
But Mike Nystrom of the Michigan Infrastructure and Transportation
Association, joined by construction company executives Brian Slagter and
Mark Johnston, said the state is reaching a critical juncture in terms of
being able to maintain and repair roads and bridges.
Both Mr. Slagter and Mr. Johnston said their firms have lost business in
Michigan and have begun brisk expansions in Florida. In fact, Mr.
Johnston, president of Ajaks Paving, said his company had recently won one
of the largest contracts in Florida history to repave a long section of I-75
in that state.
And Mr. Slagter of Slagter Construction in Wayland said the number of
employees he has in Michigan has fallen by some 40 percent, and their
overall wage has fallen as well, while the number of workers he has in
Florida is expected to double this year.
They also, however, said it was critical for Michigan to expand its road and
bridge construction and maintenance program, not only for their businesses,
but for the good of the state's general economy.
Even if the proposals passed as introduced they would raise $1.1 billion of
what Mr. Nystrom said is a $2.7 billion overall need. But the state needs
to begin to address the overall problem, he said, and without boosting taxes
the state will have no chance of convincing the federal government to
increase its contribution of road funding monies, he said.
Legislators on the committee seemed to recognize a need for road
improvements, but questioned the need for the tax increases as outlined.
Rep. Tom Casperson (R-Escanaba) said he was willing to try to pitch the
increases to his district, but that so far his constituent comments were
running 100 percent against the proposed tax increase.
Even Rep. Hoon-Yung Hopgood (D-Taylor), committee chair and one of the
sponsors of the bills, said he was "getting my share of fan mail too" about
the proposal.
And Rep. Neal Nitz (R-Baroda) said he did not want to have pay higher
registration fees - and warned commercial trucks may register in other
states with cheaper taxes if the registrations were raised in Michigan - and
questioned why the state did not look at some other fees or taxes to capture
revenues from hybrid vehicles and other low gas consuming vehicles. Had
road taxes on mileage or something else been considered, he asked.
Mr. Nystrom said such ideas should be considered, though he said later that
the traditional methods of financing road construction will "get more bang
for the buck."
Rep. Coleman Young II (D-Detroit) questioned if the tax increase would not
be counter-productive given high gasoline prices. Wouldn't motorists just
cut back on buying gasoline, he asked.
Mr. Nystrom said high gas prices have forced some drop in revenues as people
are driving less. But he said a three-cent a gallon increase was unlikely
to cause much concern. What worries motorists more is the major shifts in
prices that occur on a daily basis, he said.
-- Michael A. Nystrom
Vice President of Government & Public Relations
Michigan Infrastructure & Transportation Association (MITA)
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