Rainy Day Fund Proposed to Carryout Dredging Activity

Multiple Senate Republicans showed support on Tuesday for legislation that would look to the state’s Budget Stabilization Fund (“rainy day fund”) for $30 million to fund dredging of Michigan ports now and in the future. Governor Rick Snyder called for the allocation of $22 million from the state’s budget to be used for dredging projects. However, Senate Republicans believe that dredging now is an emergency situation and the rainy day fund was put into place to address this type of need. Senator Howard Walker (R-Traverse City) acknowledges the importance of contributing to the rainy day fund, to keep Michigan’s bond rating low, however he does not believe that the fund was created for just that reason alone.

Senator Goeff Hansen (R-Hart) and his colleagues developed a five-point plan, which goes along with the Governor’s proposal, with both long and short term dedicated funds to solve the annual struggles with dredging needs. His specific proposal would earmark an important part of local funds in order to set up long-term funding plans for statewide dredging and guarantee a committed funding stream well into the future.

Senator John Pappageorge (R-Troy), Senator John Proos (R-St. Joseph), Senator Tonya Schuitmaker (R-Lawton) and Senator Tom Casperson (R-Escanaba) are equally concerned with the factors which would arise without emergency dredging and how these factors would affect their respective district. Mr. Pappageorge is concerned with declining lake levels because it forces barges to reduce the amount of gas they can carry, which means more trips and higher gas prices. A port in Mr. Proos’ district has a $20 million annual impact on Michigan’s economy and that would be in danger. Sen. Tonya Schuitmaker’s concern mirrors Sen. John Proos; however, she also sees the importance of dredging to further the success of the state’s tourism industry. Sen. Tom Casperson’s district in the Upper Peninsula is responsible for transporting iron ore from its pits to a steel company that helps produce Ford F-150 trucks. The iron ore freighters are facing problems that could be solved by dredging.

posted by PAA Online , Friday, February 15, 2013 10:11 AM
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