The League attend a briefing with the Governor this morning where he laid out his plan to rebuild Michigan’s water infrastructure. The plan is centered around a $5 annual fee per resident that would begin in 2020, have a five-year phase-in period, and sunset in 2040. It is expected to generate $110 million in annual revenue. As a way to ensure that those being charged will receive direct benefit, 80 percent of the revenue generated from the fee will be expended in the region in which it was generated.

The $110 million will be utilized to fund three key areas: Integrated Asset Management ($25M), State Capital Investment Program ($75M), and Emergency Infrastructure Failure ($10M).

At the briefing, we were provided with the framework of the proposal but many of the specific details need to be worked out, and ultimately the legislature will need to approve it. You can see the documents that were presented to us by clicking the following two links:

Water Infrastructure Info Graph

Proposal to Rebuild Michigan’s Water Infrastructure

While at the meeting, the League made it a point to express our appreciation to the Governor for his efforts to invest in water infrastructure, but illustrated that this is only one component of local government and that we need to continue to work on our overall fiscal stability. We also highlighted the need for continued investment in communities because the creation of great places is the key component in attracting talent, which leads to attracting business.

John LaMacchia is the Assistant Director of State and Federal Affairs for the League handling transportation, infrastructure, energy and environment issues. He can be reached at [email protected] or 517-908-0303.