Detroit, MI – Michigan Gov Dan Malloys decision to reject the proposed $1.2 billion investment in the state’s aging infrastructure is hurting the state economy, and he is pushing back against the backlash, according to a report from Next Big Progress.
Malloy’s decision to refuse the state budget request for a $1 billion investment to repair and replace aging rail and water systems is a direct attack on the governor’s position that the state is financially strong enough to meet its obligations to the public, the report said.
Malloy is expected to announce his decision in the coming days, the Michigan Economic Development Corp. said in a news release.
The Detroit News reported that the governor made the decision in a letter to the Legislature on Wednesday.
The letter said the state would not be able to fund the planned $1,200 million investment if the state were unable to find the appropriate workforce to support it.
In the letter, Malloy said that the investment would be financed through a combination of new revenues and debt service.
The state’s finances are “in serious jeopardy,” Malloy wrote.
“The state will have to rely on public-private partnerships to fill the gaps.”
The Michigan State Employees Association said it was “deeply disappointed” by Malloys decision.
“Our members, both private and public, deserve a fair and competitive wage, benefits, and pension plan that provides them with the financial security they deserve,” the union said in an emailed statement.
The union has opposed the plan, which Malloy has supported.
The Legislature approved the proposal in March after a three-month review.
The budget proposal, which would also have funded public schools, would have cost $4.5 billion.
The proposal also included $1 million to address the need for transportation infrastructure, $1 a day to pay down a $6.5 million debt and $1 in additional state aid to help fund an aging water system, according the state report.
The $1 Billion Investment in Infrastructure was approved by the Legislature in March.
Govs Malloy and Gov.
Drew Dilkens are expected to make a decision on the budget request on March 16.