Author Archives: John LaMacchia II

Aviation Fuel Tax Bills Voted Out of Senate Finance Committee

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The week the Senate Committee on Finance voted out HB 4571, HB 4572, and HB 4677. These bill would exempt aviation fuel from sales tax and change the tax paid on aviation fuel to a tax paid on the wholesale price. As a result more money is put into the state aeronautics fund, a tax break is provided to large consumer of aviation fuel, particularly Delta Airlines, and $7 million in constitutionally protected revenue that goes to our local communities is eliminated and back-filled with General Fund revenue.

While it is important that these bills replaced the revenue lost from the sales tax exemption, the League testified in opposition to these bills because they erode the guaranteed funding we are provided under the constitution and subjected those funds to an annual appropriation.

The League supports changing the language to the House passed version because they did not impact local revenues and we will be advocating to restore that language.

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.

Michigan Conference Revises Revenues Downward $317 Million for Current Year

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The finalizing of the 2014-15 fiscal year budget can begin now that the state’s economic forecasters have agreed revenues are lower than they projected in January.

Leaders of the House and Senate Fiscal agencies and the Department of Treasury said revenues for the 2013-14 current fiscal year will be $317 million lower than expected in January, down $253.2 million in the General Fund and $63.7 million in the School Aid Fund.

For the upcoming 2014-15 fiscal year, the revenue estimating conference revised revenues downward by $299.1 million, down $220.5 million in the General Fund and $78.5 million below in the School Aid Fund from the January estimate.

The new estimate is expected to complicate completion of the budget, especially in the General Fund.

The new estimates mean overall revenue would actually drop to the two funds in the current year from the previous one by 0.1 percent. But in 2014-15, revenues in the two funds would grow by 4.1 percent, even with the downward revision.

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.

Senate Transportation Committee Takes Testimony on Repealing Annual Certification to MDOT

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In December of 2012 Public Act 506 was enacted that required local road agencies to certify the the Michigan Department of Transportation that the had developed and publicized an employee compensation plan or were in compliance with with PA 152 of 2011. The law requires a local road agency to maintain a searchable website accessible by the public at no cost that includes the following: a) current fiscal year budget, b) the number of active transportation employees of the local road agency by job classification and wage rate, c) information on financial performance, d) the names and contact information for the governing body of the local road agency, and e) a copy of the certification mentioned above. Compliance with these provisions needs to take place no later than September 30, 2014.

The League has advocated that certifying to MDOT that we are in compliance with PA 152, which by law we are required to be in compliance with, is redundant, unnecessary, and an inefficient use of time. We have also advocated that the creation of another dashboard is unnecessary because of the public access to our current EVIP dashboards, F65 Forms, audits, and our comprehensive annual financial reports.

As a result Senator Casperson has introduced SB 882 that would repeal the provisions section 18j for cities and villages. The League testified in committee today supporting this bill and there was no opposition. We are committed to working with the legislature to see this bill move forward and are hopeful that it will be voted out of committee as soon as next week.

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 Transportation Committee Votes Out Bill Regulating Solicitation of Charitable Donations in the Public Right-of-Way

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Under House Bill 4916 a city, village or township may by written authorization allow a charitable organization to solicit donations in the public right-of-way within their geographic boundaries. Individuals soliciting donation must be at least 18 years of age and must wear high visibility safety apparel. The written authorization must include name of the charitable organization, the dates, times and locations of when they will be conducting their fundraising activities. The authorization will be contingent upon the charitable organization releasing the local unit of government from any liability for all claims for damage that arise out of the use of the public right away.

This bill was passed out of committee unanimously and the League supports this bill.

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 Sends Transportation Funding Bills to the Senate.

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The House today voted out ten bills that represent another step forward in providing additional funding for our transportation system. These bills would eliminate the gas tax paid at the pump and instead charge a 6% tax on the wholesale price. They would ensure taxes paid on diesel are equal to those paid on gasoline. The Secretary of State would be required to streamline registration fees, and overweight truck permits and fines are increased. These bills also includes efficiency measures to increase competitive bidding done by the Department of Transportation, and would require warranties on construction and preservation projects over $1 million dollars.

The League has been successful in having amendments added to these bills to protect our locals ability to fix their crumbling infrastructure. We will continue to advocate for further changes to improve on the package passed by the House.

There has been very positive news coming out of the Senate that they want to find a comprehensive solution to fix our transportation network. The League recognizes that the funding solution passed by the House is not a comprehensive solution, but it does represent the most progress made on this issue in many years. We have begun discussion with key members of the Senate to ensure that any solution represents a full solution for the transportation needs of this state. Based on early indications, we are hopefully that the Senate will take the necessary steps to finding this solution.

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.

Road Funding Bills Passed Out of House Committee

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The House Transportation and Tax Policy committees voted out a series of bills today that represent the first step in securing more road funding for our local communities. Each of the bills received bipartisan support, but the acknowledgement still remains that there is more work to be done.

This is the first real step taken by the legislature to come up with a solution to fix our infrastructure. Changes are still needed to these bill to ensure that they represent a comprehensive solution for the transportation needs of this state. The League continues to work with leadership, the sponsors, and other interest groups to improve these bills.

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 Testimony Taken by House Transportation Committee on Road Funding

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For the Second time this week the House Transportation Committee took testimony on the transportation fund plan proposed by Speaker Bolger.

In testimony today the League thanked the legislature for the continued discussion but expressed our concern about this plan not representing a comprehensive solution and the lack of funding it provides in support of public transit. We have, and will continue to, offer suggestions on way to improve this legislation with the goal of finding a sustainable solution for the needs of Michigan’s transportation network.

Also testifying today were the Michigan Chamber of Commerce, the Michigan Environmental Council, and the Michigan Public Transit Association. Each of these three organizations echoed the need for additional funding to be added and strong support for the inclusion of transit in any long-term solution.

The League is very appreciative of the comments made by these organizations and will continue to work with them to find a solution to Michigan’s infrastructure needs.

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.

Tax policy Committee Takes Testimony on Sales and Use Tax Bills to Fund Roads

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Over the past two days the Tax Policy Committee has taken testimony on bills that would dedicate a portion of the general fund revenue from the sales tax collected at the pump and 1% of the use tax and dedicate that money to roads.

HB 5459 states that after all allocations and distributions are made, this includes the money that is sent to local communities through constitutional revenue sharing, the remaining balance will be used to fund our roads in accordance with percentages described in the transportation funding formula (Act 51). These percentages equal 39.1% to MDOT, 39.1% to County Road Commissions, and 21.8 to Cities and Villages. What this bill does not do is add additional dollars to the Comprehensive Transportation Fund and therefore public transit agencies across this state receive no increase in funding.

HB 5492 states the revenue generated from the use tax must first be reimbursed to the school aid fund and to communities for reimbursement for lost personal property tax revenue. Upon completion of those disbursements 1% shall be deposited into the Michigan Transportation Fund used to fund our roads in accordance with percentages described in the transportation funding formula (Act 51). This bill also does not do add additional dollars to the Comprehensive Transportation Fund resulting in no increase in funding for public transit.

Collectively these two bills will generate and additional $369 million for roads.

The League testified that while these bills preserve current funding and obligations to local communities, we have concerns about the continued dedication of General Fund dollars and the impact that this could have on our cities and villages in the future. The lack of investment in public transit is also an issue that needs to be addressed in these bills. We know that the economic and social benefits of having a great public transit system in Michigan is a key component to building vibrant communities.

These bills fall short of the sustainable long-term funding solution that is needed in Michigan. We will continue to work with members of the legislature to improve these bills and fix Michigan’s transportation needs.

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 Transportation Committee Begins Taking Testimony on Speaker’s Road Funding Plan

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The House Transportation Committee began taking testimony on Speaker Bolger’s plan to raise $450 Million dollars for roads. Offering testimony today was MDOT, Michigan Building and Construction Trades Council, and the County Road Association of Michigan.

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 would require that warranties on construction and preservation projects.

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

Finally, the plan would use General Fund dollars generated from the use tax and the sales tax collected on gas and diesel at the pump, and dedicate those dollars to roads. This would generate $379 million.

The committee will continue to take testimony on Thursday (5/1). The League will be offering testimony thanking the Speaker for beginning the discussion on increasing road funding but that further work needs to be done on the proposed legislation to ensure a long-tern solution.

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.

Senate Transportation Budget Includes More Money for Locals

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The Michigan Senate Appropriations Committee voted out SB 777 that included and additional $115 million in road funding to be distributed between MDOT, counties, and cities and villages. From that $115 million cities and villages would receive $25 million. An amendment was added to the budget that would disperse the money in one lump sum payment in November of 2014 and not spread out the payments over the fiscal year. This bill will now go before the full Senate for a vote.

Also included in the budget was $2 million for the Regional Transit Authority for non-operational expenses.

This budget fails to address the long-term road funding needs in Michigan. The committee spoke about this at length and expressed their commitment to finding a solution. The League will continue to work with our partners in the Senate on this issue and we appreciate their continued efforts to solve Michigan’s infrastructure needs.

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.