Category Archives: Communities

Congress Poised to Pass Long-Term Transportation Package This Week

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For the first time in ten years, Congress is on the verge of passing a long-term transportation package and there are some big wins for local governments within the new deal. The committee of House and Senate negotiators have agreed to the new bill worth approximately $305 billion, entitled the FAST Act (Fixing America’s Surface Transportation), and both Chambers are expected to pass it by the deadline of this Friday, December 4th. The biggest win for local communities, quite simply, is that it is a 5 year arrangement and local leaders will not have to wonder what will happen every six months under more extensions. The League had been advocating first and foremost for a bill that expands beyond the next fiscal year to enable more long-term planning for transportation projects. Specifically, there are many other significant victories being highlighted in the bill, which spans 1300 pages.

The Surface Transportation Program is now the Surface Transportation Block Grant Program and increases the amount allocated to local leaders from 50% to 55% over the length of the bill and gives locals greater flexibility in how the funds are spent.

The Surface Transportation Block Grant Program would now house the Transportation Alternatives Program, and is proposed to be increased from $835 million to $850 million. And the bill gives Metropolitan Planning Organizations additional flexibility in how to spend their funds.

Transit Oriented Development would be eligible for the TIFIA program and the minimum project size threshold would be lowered to $10 million, expanding the program significantly for smaller projects.

The bill is being paid for by a series of sources, not including any changes to the federal gas tax. Some of the sources include the Federal Reserve surplus account, selling a portion of the Strategic Petroleum Reserve and cutting the dividend the Federal Reserve pays to some member banks.

We will notify you as soon as the bill has cleared both the House and Senate later this week. We’ll know more details of the bill in the coming days, but the changes identified so far show significant improvement for local governments and their support for transportation infrastructure by the federal government. We’re pleased after all these years to be on the verge of such a victory!

Summer Minnick is the Director of External Relations and Federal Affairs. She can be reached at 517-908-0301 or sminnick@mml.org.

Roads Deal Passes Michigan Legislature, Governor Snyder Prepares to Sign

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A school bus travels over bumpy roads. Vote yes for safe roads on May 5.

A school bus travels over bumpy roads. 

Late last night the Michigan Legislature narrowly cobbled together the necessary votes to send a road funding package to the Governor Snyder’s desk for signature.

Over the past two-plus years the Michigan Municipal League has consistently called for a long-term sustainable solution that relies heavily on a significant amount of dedicated funding for transportation and doesn’t leave future state and local budgets hanging in the balance. This plan falls far short of that and there simply isn’t enough real revenue for roads in this package.

It’s an over-statement to say that a $1.2 billion plan with $600 million in new revenue and $600 in General Fund dollars will fix Michigan’s crumbling infrastructure. This is especially true given that two-thirds of the new revenue will simply replace General Fund money already budgeted for roads in the current fiscal year and the plan doesn’t fully phase in for almost a decade.

The framework of the plan includes 7.3 cents gas tax increase and a 20 percent increase in registration fees. Those increases don’t go into affect until January 1, 2017, meaning no new money will be infused into the system for 14 more months. Gas and diesel taxes will be indexed to inflation but not until 2022.

Additionally, the $600 million in General Fund revenue will be phased-in over three years beginning in FY 19 and relies on future Legislatures – some of whom aren’t even elected yet – to appropriate those General Fund dollars to uphold the promises of this current Legislature. History has proven that similar earmarks of this nature have gone unfulfilled.

Plan Details:

• HB 4736  increases passenger and commercial vehicle registrations fess by 20 percent per vehicle beginning January 1, 2017. The bill provides for additional increases for plug-in hybrid and electric vehicle registrations. These changes result in a $200 million revenue increase for transportation.

•  HB 4738, HB 4614, and HB 4616, provide for gas and diesel tax increases to 26.3 cents, an increase of 7.3 cents per gallon beginning on January 1, 2017. The bills also implement diesel parity, institute a process for taxing alternative fuels, and tie the fuel tax rate to inflation beginning in 2022. These changes result in a $400 million revenue increase for transportation.

• HB 4370 dedicates $600 million of income tax revenue to transportation phased in over three years, $150 million in FY 19, $325 million in FY 20 and $600 million in FY 21. will This bill also provides $200 million in tax relief by expanding the Homestead Property Tax Credit. According to both the House and Senate Fiscal Agencies that when fully phased-in this will reduce the state General Fund by more that $800 million, or roughly 7 percent.

• HB 4737 requires MDOT and local road agencies to secure warranties, where possible, for construction and preservation projects over two million dollars and mandates new reporting requirements for MDOT and local road agencies on those warranties.

HB 4737 also creates a “Roads Innovation Task Force” that will form no later than December 1, 2015 and prepare a report no later than March 1, 2016. The Roads Innovation Task Force will evaluate road materials and construction materials that will allow MDOT to build roads that could last at least 50 years, will focus on materials and processes that may cost more upfront but produce life-cycle construction and maintenance savings, and concentrates on longer-term time frames that seek to maximize value of the taxpayers of this state

Additionally, HB 4737 creates a Roads Innovation Fund. This fund will collect the first $100 million each fiscal year starting in 2016-17 from fuel taxes and every year thereafter. The funds can only be released once the House and Senate approve a one-time concurrent resolution approving the report done by the Roads Innovation Task Force. Those funds shall be appropriated only for the use of specific higher quality, longer life cycle road construction purposes. Once the concurrent resolution is approved the fund shall no longer annually receive the allocation.

• SB 414 creates an automatic rollback of the income tax. The rollback occurs when General Fund growth exceeds the rate of inflation plus 1.425%. The first rollback could not begin until January 1, 2023.

• HB 4610 allows townships contributing 50% or more to a road project to require an RFP for pavement projects over $50,000 and gravel projects over $25,000.

• HB 4611 requires an RFP process for all projects over $100,000 for MDOT. Local road agencies must do RFPs for all projects, excluding routine maintenance, over $100,000, unless the local road agency affirmatively finds that they can do it themselves for less.

The League believes this plan is overly reliant on existing tax dollars and very likely establishes a foundation for potential cuts to local police and fire protection, higher education, economic development and our ability to attract and retain a talented workforce. It fails to address the key principles for which we consistently advocated – a long-term sustainable solution that invests in our road network, protection of essential services, and fiscal responsibility in regards to future state and local government budgets.

View a League media statement on the roads plan passed by the Legislature.

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.

House Passes $1.2 Billion Road Funding Plan that Relies on $600 Million in General Fund Revenue

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A fire truck makes an emergency run over crumbling roads in Macomb County.

A fire truck makes an emergency run over crumbling roads in Macomb County.

Late last night the Michigan House of Representative passed a plan that would raise $1.2 billion to fix Michigan’s infrastructure but relies heavily on state general fund revenue to do so. The plan could have a significant negative impact on the essential services that communities provide and Michigan Municipal League has consistently expressed our concern with any road funding solution that would jeopardize the long-term fiscal sustainability of this state and its communities.

This plan contains $600 million in new revenue and $600 million in general fund revenue. The new revenue would be generated by increasing gas taxes by 3.3 cents and registration fees by 40%. The plan does not identify where the existing revenue will come from. The following bills were included in the House passed plan.

• HB 4370 provides $200 million in tax relief by expanding the Homestead Property Tax Credit and also dedicates $600 million of income tax revenue to transportation. Based on current revenue and expenditure projections, this statutory dedication of General Funds would not result in a year end budget deficit greater than $60 million in the next five years.

• HB 4736  increases passenger and commercial vehicle registrations an average of $55 (40%) per vehicle. Additionally, the bill provides for plug-in hybrid ($30) and electric ($100) vehicle registration fee increases resulting in $400 million revenue increase for transportation.

• HB 4614, HB 4616, and HB 4738 provide for gas/diesel tax increases to 22.3 cents (increase of 3.3 cents) per gallon by 2019. The bills also implement diesel parity, institute a process for taxing alternative fuels, and tie the fuel tax rate to inflation resulting in $200 million revenue increase for transportation.

• HB 4610 allows townships contributing 50% or more to a road project to require an RFP for pavement projects over $50,000 and gravel projects over $25,000.

• HB 4611 requires an RFP process for all projects over $100,000 for MDOT. Local road agencies must do RFPs for all projects, excluding routine maintenance, over $100,000, unless the local road agency affirmatively finds that they can do it themselves for less.

• HB 4737 requires MDOT and local road agencies to secure warranties, where possible, for construction and preservation projects over two million dollars.

• SB 414 creates an automatic rollback of the income tax rate equal to the amount General Fund revenue exceeds the rate of inflation annually. The rollback begins on January 1, 2019 and the tax cut level will be dictated by annual General Fund levels and will vary from year to year.

The League strongly encourages Governor Snyder and quadrant leaders to restart their conversation and come up with a road funding plan that does not jeopardize the essential services that Michigan citizens rely on, such as police and fire protection, schools and public transit.

Additionally, the League encourage you to reach out to your individual Senator and ask them to pass a long-tern fiscally sustainable solution that relies more on new revenue and less on general fund revenue , does not jeopardizes future state budgets and does not  negatively impact the essential services communities provide.

View a League media statement on the House roads plan.

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.

 

Local Election Results Show Voters Support Essential Local Services, Better Communities

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A road crew fills potholes in Macomb County.

A road crew fills potholes in Macomb County.

(Go here to view the League’s statement on the defeat of Proposal 1)

Not to be lost in the overwhelming defeat of Proposal 1 last night, is the success of a majority of local ballot questions that also went before voters in Tuesday’s election. The results show voters are willing to support essential services that contribute to a community’s vibrancy.

According to MIRS news service, of the more than 200 questions on local ballots statewide nearly 70 percent were approved. In particular, voters approved nearly 70 percent of the school-related ballot proposals and 78 percent of the proposal dealing with police, fire and emergency services.

View a spreadsheet on the MIRS report here. View the subscription-only MIRS article on the local election results here under the headline “Local Road Proposal Approvals Go 50%, New Money Asks for Roads 21%”.

The local election results also are consistent with the findings of an EPIC-MRA survey co-commissioned by the League. The poll, which you can view here, found that a majority of voters who opposed the Proposal 1 ballot question want the Legislature to get back to work and pass a plan that fixes roads with new revenues. The poll shows that voters did not want major cuts to essential services that make our communities strong and liveable – namely schools, communities and police and fire protection.

Here are some key findings in the EPIC-MRA poll:

  • A strong majority of voters want the Legislature to get back to work now and fix the roads;
  • They are willing to support higher taxes as long as they money goes only to transportation, and they oppose major cuts to K-12 education, higher education, revenue sharing and healthcare to find the money to fix the roads;
  • 64 percent polled “strongly favor” or “somewhat favor” a 1-cent increase in the state sales tax to fix the roads, as long as the new revenue from the penny increase is guaranteed in the constitution for roads, bridges and transportation;
  • 88 percent oppose “major cuts” to K-12 education to pay for roads;
  • 76 percent oppose “major cuts” in revenue sharing for local communities;
  • 63 percent opposed “major cuts” to universities and community colleges;
  • 85 percent support the Legislature working all summer to pass a new roads plan.

The poll also found that the Legislature’s job approval rate sunk to just 27 percent (with only 1 percent giving the Legislature an “excellent” rating). That’s reflected in the constant complaint we’ve heard that the Legislature should have come up with a road solution itself instead of sending it to the voters.

A fire truck makes an emergency run over crumbling roads in Macomb County.

A fire truck makes an emergency run over crumbling roads in Macomb County.

Of note, the poll found that Governor Snyder’s approval rating is an all-time high – 52 percent positive job approval. The Governor has been an exceptionally strong leader on fixing our roads and the League was especially pleased with his statement issued following Proposal 1’s defeat last night. The statement, with the subheadline, “A plan must improve roads without hurting schools, communities,” explains that fixing the roads remains a top priority for the governor and that a new solution should be one that gives “Michigan residents the safe roads they need and deserve and helps our growing economy.”

The League pledges to continue working with governor and the Legislature on a new plan that will fix our roads and bridges while protecting those services essential to Michigan’s families, communities and economy. Like Michigan voters, we do not believe the state can cut our way to prosperity.

There will be much debate in Lansing in the coming days, weeks and possibly months over the next step to fixing our roads. Please stay tuned to this Inside 208 legislative blog for the latest developments. We may also call on you as various plans surface and gain momentum. So please be ready to contact your lawmakers when asked.

Matt Bach is director of media relations for the Michigan Municipal League. He can be reached at mbach@mml.org and (734) 669-6317.

Is there a Plan B if Proposal 1 Fails? Why are Michigan’s Roads so Bad? Find Out in New League videos

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Fowler plan bIt’s just two weeks until voters decide the fate of Proposal 1 on May 5 and the Michigan Municipal League has just posted a series of question and answer videos to address some of the concerns you may have about the road funding plan.

The videos come from a panel discussion during the League’s 2015 Capital Conference that took place in March.

The general session, “Driving Toward Safer Roads with Proposal 1,” was moderated by Roger Martin, of the Martin Waymire public relations firm and spokesman for the Safe Roads Yes! coalition. Panelists were Mike Flanagan, state superintendent of the Michigan Department of Education; Rob Fowler, president and CEO of the Small Business Association of Michigan; Grand Rapids Mayor George Heartwell; and Kirk Steudle, director of the Michigan Department of Transportation.

View all the League’s Proposal 1 information here, including an updated list of all the Michigan communities that have passed resolutions in support of Proposal 1.

Steudle bad roadsHere are the questions posed and subsequent answers. The videos are all very short:

The League also has a new slide show illustrating how much in new money for roads and constitutional revenue sharing each Michigan community will receive if Proposal 1 passes. The numbers are substantial. It’s a long video but it’s in alphabetical order so you can advance to the parts you want to see. You can also view a pdf of that video here, which will allow you to advance through the list more easily.

Matt Bach is director of media relations for the Michigan Municipal League. He can be reached at mbach@mml.org and (734) 669-6317.

LaMacchia: ‘Roads Will Only Get Worse’; Vote Yes on Proposal 1 for New Road Funding in Michigan

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About 60 people attend a symposium on Proposal 1 Tuesday in Sterling Heights.

About 60 people attend a symposium on Proposal 1 Tuesday in Sterling Heights.

Last night the Michigan Municipal League hosted a “Safe Roads Symposium” on Proposal 1 in Sterling Heights. The event was attended by about 60 people, including multiple officials from the city of Sterling Heights and surrounding communities.

The League’s John LaMacchia, Legislative Associate, was one of several officials who spoke on the issue as part of a panel during the symposium.

Other event panelists were Gilda Jacobs, President and CEO of the Michigan League for Public Policy; Dr. Robert Livernois, Superintendent of Warren Consolidated Schools; Dr. Christine Johns, Superintendent of Utica Community Schools; and Carmine Palombo, Deputy Executive Director of SEMCOG.

During the informative event, LaMacchia gave a brief history of how Proposal 1 came about and why the Michigan Municipal League supports the initiative heading to voters on May 5.

LaMacchia encouraged those attending to vote yes on Proposal 1.

Panelists get ready for the symposium.

Panelists get ready for the symposium.

“Michigan now spends less per resident on roads than any other state. Let me say that again: Michigan is now dead last in per-capita funding for roads. We’ve neglected properly invest in our roads and bridges and everywhere you travel in this state you can see the repercussions of that. This proposal will constitutionally guarantees that every penny we pay in state fuel taxes goes to transportation while protecting funding for local governments and schools. This proposal is not perfect … nothing from Lansing ever is. But it does provide a long-term sustainable solution that will fix our roads, and the only guarantee we will have on May 5th if this fails is that our roads will get worse. Vote Yes!”

For additional information on Proposal 1 go here: http://www.mml.org/advocacy/safe-roads-yes-neutral-info.html.

Matt Bach is director of media relations for the Michigan Municipal League. He can be reached at 734-669-6317 and mbach@mml.org.

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.

 

 

Michigan Communities Pass Resolutions in Support of Proposal 1 for Safe Roads

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A road crew fills potholes in Macomb County.

A road crew fills potholes in Macomb County.

Multiple Michigan communities have passed resolutions in support of Proposal 1 for Safe Roads ballot item on May 5, but we need more to also declare their support.

So far the League has been informed that the following communities have passed Vote Yes on Proposal 1 resolutions: Clare, Elk Rapids, Lapeer, Norton Shores and Wakefield.

We expect many more resolutions to be approved over the next few weeks.

The Michigan Municipal League is encouraging its member communities to approve resolutions in support of Proposal 1 following the League board’s endorsement of the road funding plan in January. View a sample resolution here.

The League also is asking members to send their local media letters to the editor in support. Go here to view sample letters.

Plywood under bridges attempt to prevent pieces of the bridge from falling on vehicles.

Plywood under bridges attempt to prevent pieces of the bridge from falling on vehicles.

We know that many people still have questions about Proposal 1 and in response we’ve posted this free webinar about the plan and why the League supports it. Check it out here.

Go to the League’s Safe Roads Yes web pages to get additional details, including talking points, neutral information, the official Proposal 1 ballot language, media coverage of the issue, and the amount of additional road revenue and constitution revenue sharing that would go to each community if Proposal 1 passes.

Join the Safe Roads Yes! coalition here.

(Note: Some have asked is it OK for my community to pass a vote yes resolution? Go here for details).

Matt Bach is director of media relations for the Michigan Municipal League. He can be reached at mbach@mml.org.

Proposal 1 FREE Webinar Now Available from Michigan Municipal League

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A newly posted webinar (watch above) by the Michigan Municipal League lays out the details on Proposal 1 heading to voters May 5 and includes neutral information as well as details on why the League supports the proposal. The League is an active member of the Safe Roads Yes! coalition that is backing Proposal 1. Check out the League’s Safe Roads Yes! webpages that explains the impact Proposal 1 will have on Michigan municipalities.

Bad Roads Potholes April 2014 Local Roads Matter (2)-square-small-webThe webinar by the League’s John LaMacchia II took place on Friday (Feb 27, 2015) and is available for viewing for free for League and community members. The webinar focuses on the history leading up to the Legislature coming up with Proposal 1, what it means for communities and how there’s no Plan B for fixing our roads should the plan fail on May 5.

There has been a lot of media coverage and work by the Safe Roads Yes! coalition in recent days regarding Proposal 1. One of the best, most informative pieces came out Friday (Feb. 27, 2015) by the Detroit Free Press. With the headline, “Roads 101: What you need to know about Proposal 1,” the opinion piece by the Freep editorial board is in question and answer format. It does an excellent job laying out some of the concerns people may have about Proposal 1 and then addressing those concerns.

One other thing that happened late last week was the approval of the official ballot language for Proposal 1. You can read that here.

In addition, the League continues to ask its member communities to approve resolutions in support of Proposal 1. These resolutions are vital to letting your residents know that Proposal 1 is good for communities and will improve our deteriorating roads. Go here for a sample resolution in both Word and PDF formats.

League members who have questions about Proposal 1 should contact the League’s John LaMacchia II at jlamacchia@mml.org or 517-908-0303.

Matt Bach is director of media relations for the Michigan Municipal League. He can be reached at mbach@mml.org and (734) 669-6317.

Webinar on Proposal 1 is Friday for Michigan Municipal League Members

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The League is hosting a free webinar on Friday about Proposal 1.

The League is hosting a free webinar on Friday about Proposal 1.

We’ve heard you have questions about Proposal 1. Well, the Michigan Municipal League has answers.

Participate in our FREE webinar 11 a.m. to noon Friday (Feb. 27, 2015) about the road funding proposal that is heading to voters May 5. The hour-long webinar will be led by the League’s transportation expert John LaMacchia II.

The session will give you all you need to know about the road funding proposal, what it means for your communities, how you can inform your residents about it, and why the League Board of Trustees supports it.

Click here to sign up.

Go here to learn more about the proposal and how the League is asking Michigan communities to pass resolutions in support of the plan.

Vote yes on Proposal 1. Join the coalition at SafeRoadsYes.com.

Vote yes on Proposal 1. Join the coalition at SafeRoadsYes.com.

And check out our web page geared toward Michigan’s cities and villages regarding Proposal 1. This web page provides community-specific information about Proposal 1 and its impact on municipalities. The page has neutral, information-only documents regarding Proposal 1. It also has information on why the League believes you and your residents should vote yes, and documents showing projected road revenue and revenue sharing dollars should Proposal 1 pass.

If you have about Proposal 1 please contact the League’s John LaMacchia at 517-908-0303, jlamacchia@mml.org.

Matt Bach is director of media relations for the Michigan Municipal League. He can be reached at mbach@mml.org.