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Michigan takes steps to keep federal road funds

By AP

LANSING, MI –
It looks like Michigan won't lose nearly $500 million in federal road dollars after all.

A legislative conference committee on Wednesday drafted a plan to raise the $84 million Michigan needed to put up in matching funds to get the federal dollars.

The state Transportation Commission had delayed hundreds of road and bridge projects scheduled for the next five years out of fear the state would lose out on the federal payments. That remains a concern, and there have been calls for a tax or fee increase to raise more state road money.

For the budget year starting Friday, however, Michigan will be able to get the federal funds without resorting to higher taxes. The state would sell short-term notes, redirect some driver's license fees and use savings in other areas.

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