Michigan is losing millions of dollars a year in tax revenues that can’t be put into fixing the roads because people are buying less fuel.  They’re driving fuel-efficient cars or driving less.  Plus, road maintenance costs are rising.

Rick Pearson, superintendent-assistant manager of the Lapeer County Road Commission, said it’s like falling on a “double-edged sword at the local level.”

About four years ago, the commission paid $25 a ton for asphalt.  “Today we pay $42 per ton,” he said.

With the 68 percent increase in costs, Lapeer has cut back on heavy maintenance items such as asphalt, cement and concrete.  Cutting back means not fixing roads as often.

Most of the money that pays to fix roads comes from the taxes on gasoline and fuel. Michigan Infrastructure and Transportation Association (MITA) said that Michigan’s 19-cents-per-gallon tax is lower than most states.  The gas tax hasn’t increased since 1997 and is calculated by how many gallons are purchased, not on the price.

Road conditions may start to decline as soon as 2008 if the gas tax isn’t increased, said Craig Newell of the Michigan Transportation Department (MDOT) Statewide Planning Division.

Dan Toy, manager of the Lapeer County Road Commission, said the main reason for the decline in road conditions is the increase in gas prices. American Automobile Association (AAA) said a price at this time two years ago was $1.81 a gallon, giving state road commissions more money to fix roads.  A year ago, the average price $2.21.

“When gas prices go up, people will tend to buy less,” Toy said.

Ninety-two percent of Michigan’s roads are currently considered in “good” condition, Newell said.  That percentage could drop to 68 percent by 2014 if there is no change in tax revenue before then.

Michigan charges a 6 percent sales tax as well.

“The bulk of (the sales tax) goes toward education,” the County Road Commission Association of Michigan said.