The Road Information Program, or TRIP, said a lack of money has delayed scheduled construction while urban congestion and traffic deaths are rising.
"Michigan has a high level of deterioration," said Jim Fahey, assistant research director for TRIP, a Washington, D.C., organization that researches data on highway transportation.
In Michigan, TRIP long has warned of road disrepair. The Michigan Road Builders Association has used its findings to urged gas tax increases to provide added money.
"Increased funding will be essential in making road and bridge improvements," Fahey said.
Anthony Milo, executive vice president of the road builders association, said legislation which has cleared the state Senate may save some money. Included in the package was a limit on road lawsuits and other measures aimed at making the Michigan Department of Transportation more efficiently.
Some legislative leaders have said that will reduce the need for a gas tax boost.
But Milo said a gas tax increase will still be needed. Michigan's tax now stands at 15 cents a gallon, and there has long been discussion of the need to raise it.
"A gas tax increase has to be part of the equation," Milo said. And he noted that many expect lawmakers to tackle the issue in the "lame-duck" session after the November election.
"Prior to the election, it's hard to get anybody to focus on anything but the election," Milo said. "This should be the No. 1 priority in the lame-duck session. I don't believe Michigan motorists want us to wait any longer."
A spokesperson for Gov. John Engler said negotiations over a proposed gas tax increase are still going on, but there is no sign of an agreement in time for the lame-duck session.
"There's nothing new," said John Truscott. "We've continued negotiations over the past couple of weeks.
"We've recognized the needs. We've not reached agreement. There is a potential. ... Right now, I'd say 'no' unless there's some miraculous agreement."
TRIP and the road builders held a news conference Wednesday at a Lansing wheel and brake service business. Owner Ed Carpenter hauled out two badly bent wheels to show what happens when a wheel hits a pothole.
"There's a lot of damage because of bad roads," he said. "We see it every day in the shop."