Michigan's ailing, auto-dependent economy got a big boost Friday from the U.S. government, which offered to help back $2 billion in bonds for local communities. The money could be used to fix roads and infrastructure, closed auto plants, public facilities or help private developers create jobs, among other things.
The U.S. Treasury will pay 45% of the interest costs on the bonds, which will save communities millions of dollars.
The program, announced by Vice President Joe Biden in Kalamazoo, would designate Michigan with 8% of the national program’s $25 billion, granting it more money per capita for local projects than any other state. Detroit, Wayne and Oakland counties would be among the top 10 recipients in the nation.
Oakland County is eligible for $104 million for public works projects, some of which could go to road projects. Doug Smith, director of economic development, said those would most likely be tied to redevelopment. Oakland is eligible for an additional $155 million to assist private-sector development as well.
The new program could generate $196 million for Wayne County and $125 million for the city of Detroit.
Macomb County stands to raise $115 million from the new stimulus plan, and most of that appears headed to fixing roads, said Commissioner Jim Carabelli (R-Shelby Township). He said possible repaving projects are:
- 15 miles between Mound and Maple Lane;
- 14 miles from Mound to Van Dyke; and
- 14 miles from Gratiot to Harper.
Gov. Jennifer Granholm also joined Biden in Kalamazoo to hype a $48 million construction project on I-94, paid for from the state’s $7 billion in federal stimulus money, most of which is already locked in for road repairs, schools and universities.
