Tag Archives: Transportation Budget

Governor Announces Transportation Budget, Talks Investment in Infrastructure

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This week the Governor announced his budget which includes an increase in transportation funding. As a result of higher fuel taxes and registration fees that will take affect on January 1, 2017, the Governor is projecting $533 million in addition revenue for roads, bridges, transit, and aviation across Michigan. Cities and villages will receive approximately $100 million of the new revenue generated.

Unfortunately the Governors is no longer adding additional General Fund money to the transportation budget resulting in a net impact to cities and villages that will be less than $50 million. This increase represents new constitutionally protected revenue that will continue on an annual basis but it falls far short of what is truly needed.

Additionally transit will see bus capital increase by $19 million and local bus operating increase by $12.6 million. Rail will see a $15.8 million increase and aviation and airport improvement programs will receive a $13.5 increase.

The Governor also announced an additional $195 million to combat the ongoing crisis in Flint.

  • $30 million will be used to give Flint residents rebates on lead-tainted water they didn’t feel comfortable drinking or using.
  • $63 million for treating children with high blood levels expanding preschool programs putting nurses in the schools, abating Flint homes of lead, making epidemiologists available to analyze blood lead levels and paying for in-home behavioral services for children.
  • $37 million is going toward making the Flint municipal water safe to drink. That means more water samples, inspections and replacing of filters in schools, studying what needs to be going on with Flint’s infrastructure and staying connected with Detroit until the end of 2016, when the city is scheduled to hook up to the new Karegnondi Water Authority (KWA).
  • $15 million will go towards food and nutrition programs for Flint’s children, including a summer meal program, mobile food banks and food inspections.
  • $50 million would be set in reserve for any future needs in Flint.

Finally the Governor proposed $165 million in ongoing funding to create the Michigan Infrastructure Fund that will be used to fund statewide infrastructure needs. There are limited details but the Governor is proposing that the investments will be based on a prioritization of needs. Categories for investment could include replacement of known high-risk lead and copper services lines, infrastructure upgrades while repairing roads or other utilities and the development of asset management plans.

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

Transportation Budget Includes Additional One-Time Funding for Local Roads

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Although the legislature was unable to come up with a comprehensive solution to fix Michigan’s transportation system, next years transportation budget includes an additional $144.5 million in one-time funding for roads. As a result cities and villages across this state will receive $31.5 million. Based on the boilerplate language in the bill, the money will be spread out over equal payments throughout the year and not come as a lump sum payment at the beginning of the fiscal year. An estimated breakdown of what each community will receive can be found below.

Estimated Calculation of $144.5 million FY15

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

Transportation Budget Passes Conference Committee

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The transportation budget passed out of conference committee this week and did not include new revenue for transportation funding that reflects a comprehensive solution. SB 777 did include $144.5 million in one-time general fund money that would be distributed to MDOT, Counties, and cities and villages. Of the $144.5 million cities and villages will receive $31.5 million in additional funding for the fiscal year beginning October 1, 2014. SB 777 also included $1.1 million for the Regional Transit Authority.

A significant amount of work continues to take place around finding a larger solution and the League remains hopeful the legislature will act before they leave for summer break.

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 Appropriations Committee Votes out Transportation Budget

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The House Appropriations Committee voted out HB 5313 which included the transportation budget today by a vote 19-0 with all Democrats abstaining. Adjustments we made to the budget to reflect the changes that Speaker Bolger is proposing to increase funding to roads. As a result $391 million in general fund dollars will be appropriated to the transportation budget.

Many of the details are yet to be worked out and the League continues to have concerns about the use of general fund dollars supporting an increase in road funding. This budget also represents an increase in funding that still falls significantly short of the actual increase needed to support our transportation system. 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.

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.

Transportation Budget Sees Increase Due to Budget Surplus

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The Conference Committee on Transportation voted out a budget today that included an additional $350 million dollars. Those dollars will be split two ways, $121 million going to the Federal Aid Match Requirement and the remaining funds into a new Priority Roads Investment Program. This increased funding is a direct result of the budget surplus.

The Priority Roads Investment Program will have $115 million available to spend this year with the remaining carrying over to the following year. The legislature will be responsible for appropriating the money to specific projects around the state.

With no deal on new transportation funding the budget did not include the recommended $1.2 billion Governor Snyder requested. The Governor is still committed to to solving the need for greater investment in transportation and will be working with the legislation over the next few weeks, and likely the coming months, to come to an agreement on increase funding for transportation.

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