Federal Government Must Act to Maintain Harbors

Properly maintaining a harbor is critical to the port’s economic viability and the financial bottom line of shippers and importers. A lack of dredging in Southwest Michigan harbors is forcing ship operators to carry lighter loads, costing them millions of dollars.

That is why I co-sponsored Senate Resolution 97, calling on the U.S. Congress to ensure funds collected from shippers are used exclusively as intended: to maintain and dredge our nation’s harbors. It has been referred to the Senate Natural Resources, Environment and Great Lakes Committee for consideration.

Congress established a federal harbor maintenance tax on shippers in 1986 to fund harbor operations and maintenance at U.S. ports.

However, even though the federal Harbor Maintenance Trust Fund has a balance of nearly $6 billion, the critical dredging needs of Great Lakes harbors have not been met.

In fact, despite collecting almost $1.5 billion in maintenance taxes from shippers last year, only $758 million was actually spent to dredge harbors in Michigan and other coastal states.

That is unacceptable.

Sustaining a healthy harbor is important on several fronts: It supports Southwest Michigan jobs in an increasingly global economy, fosters entrepreneurship and protects our state’s great natural resources.

Our shippers have fulfilled their obligations to support harbor maintenance; it is now time for the federal government to do their job.

This resolution will send a message to Washington that their failure to act is hurting our economic recovery and costing us jobs.

This entry was posted in Blog, Economy, Jobs, John Proos, Michigan State Senate, Taxes and tagged , , , , . Bookmark the permalink.

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