Speaker Bolger Unveils New Michigan Transportation Funding Plan

A new plan from House Speaker Jase Bolger (R-Marshall) would increase the state’s annual investment in its roadways by at least $500 million annually.

Unveiled today, the plan would do that, in part, by converting the state’s flat gas tax to a tax based on a percentage of the wholesale price and by dedicating some current sales tax and use tax revenue to transportation needs.

The plan focused on four specific subject areas: increasing efficiencies, improving quality, improving fairness and investing current resources. That’s different from other plans that have focused on tax increases to improve the state’s roads.

The proposal includes ending the 19 cents per gallon tax on gasoline and 15 cents per gallon tax on diesel fuel and replacing them with a 6 percent tax on the price of fuel at the wholesale level. This would be a revenue neutral change for gasoline and raise $47 million in new revenue from those buying diesel fuel.

The proposal also includes efficiency measures such as more competitive bidding for local road agencies and the Department of Transportation and requiring all projects more than $5 million to have a minimum five-year warranty.

The plan would also increase fees on permits for overweight and oversize trucks, a move that would raise $4.5 million.

The Michigan Municipal League believes that one of the most important aspects of creating a vibrant state is to have a quality transportation system. Unfortunately an additional $500 million annually falls far short of solving this problem long term. We hope to work with the Speaker and others on this issue to provide a long term funding solution that meets the infrastructure needs of this state without potentially putting local funds in jeopardy.

The following links are two documents made available by the House Republicans to help illustrate their plan.

Building Roads 4-14          Road Funding board

The League will continue to update our members on the specifics of this plan as more details become available.

John LaMacchia is a Legislative Associate for the League handling transportation and infrastructure issues. He can be reached at jlamacchia@mml.org or 517-908-0303.

Updated Local Agency Program Application Made Available by MDOT

Effective April 1, 2014, the updated MDOT Local Agency Program Application Forms 0258, 0259, and 0260 were activated and made available on the MDOT Local Agency Program (LAP) website here as well as at the MDOT Forms page here.

The forms were updated mainly to:

• request information from the local agency regarding whether its project includes work in any MDOT right of way, or whether the proposed work affects any existing traffic signals or pedestrian signals. This information will allow MDOT LAP staff engineers to determine whether other MDOT units need to be involved in the project.

• revise ROW Attachments A and B, defining “property acquisition” as “permanent fee, permanent easements, temporary consents to construct, and grading permits”, hopefully resulting in a less confusing definition

• include space for the local agencies to list their designated Certified Computerized Office Technician (page 10 of each form), in accordance with current Bureau Of Highway Informational Memoranda (BOHIM)

• provide consistency in fonts and type faces

• changed references to the Transportation Alternative funding program

• correct several fields which were auto-filling incorrectly

Local agencies should begin using these forms as soon as possible, so that they can identify their certified computerized office technician and comply with the BOHIM.

If you have questions or need more information, please contact Bruce Kadzban, MDOT LAP Rural and Enhancement Program Manager, at 517-335-2229 or at kadzbanb@michigan.gov.

John LaMacchia is a Legislative Associate for the League handling transportation and infrastructure issues. He can be reached at jlamacchia@mml.org or 517-908-0303.

 

House and Senate Transportation Budgets Include More Money For Locals

Both the Senate and House Appropriations Subcommittee’s on Transportation reported out their budgets with additional money for local road agencies. Each of these budgets included an additional $115 million in a one-time general fund appropriation that will be distributed through the formula. As a result cities and villages across this state will see an increase of $25 million in the next fiscal year.

These budget recommendations will now go before the full appropriations committee for a vote. The League is supportive of these changes and would like to thank Chairman Papageorge and Chairman VerHeulen for their leadership on this issue.

John LaMacchia is a Legislative Associate for the League handling transportation and infrastructure issues. He can be reached at jlamacchia@mml.org or 517-908-0303.

$215 Million for Roads Receives Governor’s Signature

(Update: View a joint press release on this issue)

SB 608 has been signed by the Governor. The bill includes $215 million in general fund dollars for roads. Of that $215 million, $100 million will be distributed through the Act 51 formula to local road agencies to be used on maintenance as a result of this years harsh winter. It requires that the $100 million in special winter road maintenance funds be used only for road maintenance, excluding administrative, overhead, and other indirect costs.  The remaining $115 million will be used for priority road projects identified by individual lawmakers and prioritized by the Legislature’s leadership. An amendment was adopted that states if the money for priority road projects is not obligated by July 1, 2014 the remaining balance would be distributed through the Act 51 formula.

The League is very appreciative of the efforts of the legislature to deliver additional road funding to our local communities during this time of need. The League would also like to thank our members who took the time to contact their legislator on this issue. The following link will provide the amount each city and village will receive from the $100 million after it is distributed through the formula.

$100 Million Breakdown for Cities and Villages

John LaMacchia is a Legislative Associate for the League handling transportation and infrastructure issues. He can be reached at jlamacchia@mml.org or 517-908-0303.

Additional Road Funding for Michigan Communities Awaits Governor Snyder’s Signature

(Update: View a joint press release on this issue)

The Senate and House quickly approved SB 608 after the conference committee voted it out just before noon this morning and it now awaits the Governor’s signature. The bill includes $215 million in general fund dollars for roads. Of that $215 million, $100 million will be distributed through the Act 51 formula to local road agencies to be used on maintenance as a result of this years harsh winter. It requires that the $100 million in special winter road maintenance funds be used only for road maintenance, excluding administrative, overhead, and other indirect costs.  The remaining $115 million will be used for priority road projects identified by individual lawmakers and prioritized by the Legislature’s leadership. An amendment was adopted that states if the money for priority road projects is not obligated by July 1, 2014 the remaining balance would be distributed through the Act 51 formula.

It is anticipated this bill will receive the Governors signature before the end of the week. The League is very appreciative of the efforts of the legislature to deliver additional road funding to our local communities during this time of need. The League would also like to thank our members who took the time to contact their legislator on this issue. The following link will provide the amount each city and village will receive from the $100 million after it is distributed through the formula.

$100 Million Breakdown for Cities and Villages

John LaMacchia is a Legislative Associate for the League handling transportation and infrastructure issues. He can be reached at jlamacchia@mml.org or 517-908-0303.

Conference Committee Votes Out Supplemental with Additional Road Funding

Just before noon today the conference committee, by a unanimous vote, supported SB 608. After much debate, the bill included $215 million in general fund dollars for roads. Of that $215 million, $100 million will be distributed through the Act 51 formula to local road agencies to be used on maintenance as a result of this years harsh winter. It requires that the $100 million in special winter road maintenance funds be used only for road maintenance, excluding administrative, overhead, and other indirect costs.  The remaining $115 million will be used for priority road projects identified by individual lawmakers and prioritized by the Legislature’s leadership. An amendment was adopted that states if the money for priority road projects is not obligated by July 1, 2014 the remaining balance would be distributed through the Act 51 formula.

It is possible that this could come up for a vote in the Senate and the House as early as today and receive the Governor’s signature before the end of the week.. The League is very appreciative of the efforts of the legislature to deliver additional road funding to our local communities during this time of need. The League would also like to thank our members who took the time to contact their legislator on this issue. Upon final passage of this legislation the League will make available a list with all of the communities across this state and what they will receive after that $100 million is put through the Act 51 formula.

John LaMacchia is a Legislative Associate for the League handling transportation and infrastructure issues. He can be reached at jlamacchia@mml.org or 517-908-0303.

Supplemental Budget Bill with Additional Road Funding Sent to Conference Committee

SB 608 which included additional $100 million to be spent on cost incurred during this years winter has been sent to Conference Committee. Legislators appointed to the committee form the Senate include Appropriations Chair Roger Kahn (R-Saginaw), Vice Chair John Moolenaar (R-Midland), and Minority Vice Chair Glenn Anderson (D-Westland). The House has appointed Appropriation Chair Joe Haveman (R-Holland), Vice Chair Al Pscholka (R-Stevensville) and Minority Vice Chair Rashida Tlaib (D-Detroit).

There are some significant points of difference that need to be worked out but there is a general consensus that additional funds for roads will be included. Due to these differences and the time that if could take to work them out, the League continues to encourage you to contact your legislators and asked that the differences in this bill be quickly worked out and that additional funding for roads be sent to our communities as soon as possible.

John LaMacchia is a Legislative Associate for the League handling transportation and infrastructure issues. He can be reached at jlamacchia@mml.org or 517-908-0303.

House Appopriations Committee Passes Budget Supplemental with Additional Road Funding

This afternoon the House Appropriation Committee by a mostly party-line 18-10 vote, with Representative Greg MacMaster (R-Kewadin) being the lone Republican to join all Democrats in opposition, sent SB 608 to the full House with an additional $100 million for road funding. The House version is different than the Senate version in a few key areas.

The Senate version did not use any general fund money, instead the $100 Million came from the $115 Million that was available in the Road and Risk Reserve Fund.  In the House version they are not using money from the Road and Risk Reserve Fund and instead are using general fund dollars. The amount general fund dollars for additional maintenance will be $100 Million and the $115 Million in the Road and Risk Reserve Fund will continue to be available for projects across this state as decided by the legislature.

SB 608 will most likely go to Conference Committee to work out the points of difference between the Senate version and the House version. It appears that both Chambers remain committed to delivering an additional $100 Million to our communities but are undecided as to where that money should come from. The League continues to support the efforts of the legislature to deliver additional funding to help local governments hit hard by this years winter. We encourage you to reach out to your legislators and ask them to vote yes on this legislation.

John LaMacchia is a Legislative Associate with the League handling transportation and infrastructure issues. He can be reached at jlamacchia@mml.org or 517-908-0303.

$100 Million in Road Funding for Snow Removal and Potholes to Receive Hearing in the House

After the Senate successfully passed SB 608 last week that included $100 Million in additional funding for snow removal and potholes, the House Appropriations Committee with take the bill up for consideration this Wednesday at 9 a.m.

The League continues to support the this legislation but we still need your help as this bill comes before the House Appropriation Committee. Please continue to contact your legislators and ask them for their support on this legislation. You can use the League’s Action Center to contact your lawmakers and send them an email.

John LaMacchia is a Legislative Associate with the League handling transportation and infrastructure issues. He can be reached at jlamacchia@mml.org or 517-908-0303.

Senate Approves $100 Million for Snow Removal and Potholes

The Michigan Senate by a vote of 32-6 approved SB 608 that included $100 million to be distributed to the state, counties, and cities and villages, to help with budgets that have been hard hit by this winters extreme weather. The $100 million will be divvied up through the state’s normal road funding formula with $39.1 million to the state transportation budget, $39.1 million to counties and $21.8 million to municipalities.

The League is supportive of the actions taken today by the Senate but we still need your help. The bill will now moves on to the House so please continue to contact your legislators and ask them for their support on this legislation. You can use the League’s Action Center to contact your lawmakers and send them an email.

John LaMacchia is a Legislative Associate with the League handling transportation and infrastructure issues. He can be reached at jlamacchia@mml.org or 517-908-0303.