Category Archives: Infrastructure

Governor Signs Budget with $400 Million in General Fund Spending on Roads

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The governor recently signed budget that included an additional $400 million in General Fund spending for roads and bridges. Of the $400 million $160 million will be used to match all available federal funds and the remaining $240 million will be distributed to MDOT, County Road Commissions, and Cities and Villages.

This additional revenue will result in additional $56.7 million for local roads in cities and villages throughout the state. For a breakdown of what each individual community will receive please click the following link. Act 51 breakdown for cities and villages

Although this additional money will be helpful, it does not represent a long term solution. The League continues to advocate for a long-term sustainable solution that will fund all aspects of out transportation network.

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.

MDOT Local Agency Programs Planning Guide and Federal Obligation Authority

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MDOT has posted the FY 2016 Planning Guide on their Local Agencies web page. Please click here to view.

MDOT  Local Agency Programs (LAP) has also posyed an update on the federal obligation authority making its way through the FHWA and MDOT funding formulas. The final funding amounts will not be announced for 3- 4 weeks, the new obligational authority will result in a limited amount of new project obligations. It is anticipated that the current backlog of projects LAP is holding would exhaust this new obligational authority. Agency can use the “Advanced Construct” funding method, however your agency could be liable for the federal share if Congress does not appropriate additional funding for FY 2015. To view the update please click here.

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.

Bill Allows Locals First Crack at Surplus Snow Removal Equipment

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HB 4368 would require the Michigan Department of Transportation to make surplus snow removal equipment available for sale to local units of government before otherwise disposing of it.

Under current law and practice, excess or surplus MDOT equipment, including snow removal equipment, is sold through DTMB public auction. Local agencies are currently eligible to bid for equipment at auction but under this legislation they will have the first opportunity to bid. The League supports this legislation.

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 Road Funding Plan Sent to the Senate

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With almost entirely republican support, a twelve bill package that represents Speaker Cotter’s transportation plan was passed out of the House today and sent to the Senate. The plan that would use existing revenue and prioritize future dollars to provide an additional $1.1 billion in funding for roads and bridges and was broken down into the following five categories.

$792 million from the General Fund
$135 million from Reprioritizing Restricted Funds
$117 million from Tax Fairness
$38 Million in New Revenue
Reforms and Efficiencies

General Fund: The $792 million the Speaker proposed will come from prioritizing general fund spending and assumes cuts can be avoided due to expected future growth in revenues. This is phased in over 4 years with $442 million being dedicated in FY 16, $492 million in FY 17, $617 million in FY 18, and $792 million in FY 19. After FY 19 the number will grow by the rate of inflation or 5%, whichever is less.

Reprioritizing Restricted Funds: Of the $135 million, $75 million will come from tobacco settlement dollars currently in the 21st Century Jobs Fund, $60 million from the states tribal gaming compact. These bills gut MEDC funding and potentially many of the programs our members have benefited from.

Tax Fairness: The House eliminated the Earned Income Tax Credit resulting in a $117 million for roads.

New Revenue: $38 million will come from diesel parody (raises tax on diesel to 19 cents and ties it to inflation) and increased fees on electric and hybrid vehicles ($30 increase for hybrids and $100 increase for electric).

Reforms and Efficiencies: The House passed bills will require competitive bidding on all MDOT and local road projects over $100,000, require MDOT and local road agencies to secure warranties for projects over $2 million, and allow townships contributing greater than 50% to a road project over $50,000 to require competitive bidding.

Other highlights: The current gas tax will remain at 19 cents but will be tied to inflation. All of the new money will be sent to MDOT, Counties, and Cities and Villages resulting in no increase for the comprehensive transportation fund.

The proposed package of bills has less than $40 million in new revenue. It neglects to make a much needed investment in transit and jeopardizes economic development funding many of our communities benefit from. This plan also impacts the long-term certainty our communities need to plan and one of the key factors for our opposition.

The League firmly believes we must find a sustainable long-term solution to the problem that includes new revenue that is dedicated to the entire transportation system and these bills do not do that. We have offered testimony on multiple occasions explaining or dissatisfaction with this proposal. Our advocacy efforts will continue to focus on a solution that includes new revenue and makes much needed investments in public transit.

We look forward to working with the Senate and are hopeful that this package can be improved significantly.

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 Road Funding Plan Passed Out of Roads and Ecomomic Development Committee

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The House road funding plan that would that would rely primarily on future growth, cuts to MEDC, and the elimination of the earned income tax, to raise $1 billion for road and bridge repairs was voted out of committee today. With the exception of one bill, the 12 bill package was voted out on a party-line vote with the five Republican committee members voting yes.

The proposed package of bills has less than $50 million in new revenue. It neglects to make a much need investment in transit and jeopardizes economic development funding many of our communities benefit from. This plan also impacts the long-term certainty our communities need to plan and one of the key factors for our opposition.

The League firmly believes we must find a sustainable long-term solution to the problem that includes new revenue that is dedicated to the entire transportation system. We have offered testimony on multiple occasions explaining or dissatisfaction with this proposal. Our advocacy efforts will continue to focus on a solution that included new revenue and makes much needed investments in public transit.

It is anticipated that the full House will vote on these bills out next week.

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.

Committee Hearings Continue on House Road Funding Plan

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The Roads and Economic Development committee held a second day of hearings on the House road funding plan. The committee first took testimony on HB 4615, HB 4614, and HB 4616 which would increase the diesel fuel tax to 19 cents per gallon on October 1, 2015 making it equal to the tax paid on gasoline, and beginning in 2016 would adjust the tax for inflation or by 5 percent, whichever is less. The changes would generate $45 million in new revenue. Next the committee heard testimony on HB 4612 would raise registration fees on hybrid and electric vehicle generating about $5 million in new revenue.

These four bills are the only bills that generate new revenue for roads. The League has continually stressed the point that our current infrastructure needs cannot be solved without a significant and dedicated source of new revenue and continue our opposition to any plan that does not address this concern.

Finally the committee took testimony on, and the League testified in opposition to, HB 4607 and HB 4608. These two bills would cut MEDC funding by $145 million and redistribute that revenue to roads. This redistribution of revenue would have a potentially devastating effect on the Community Revitalization Program, Public Spaces and Community Places program, and many other MEDC grant opportunities our members take advantage of. Additionally the funds that would be diverted to roads would bypass any additional funding for public transit further continuing the trend of not investing adequate resources to improver or entire transportation network.

Next week the committee will hold it final day of testimony and will discuss bills that will dedicate General Fund dollars to roads.

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.

Conference Committee Finalizes $400 Million in General Fund Spending on Roads

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The House and Senate conference committee on transportation today approved a $400 million contribution from the General Fund to go towards road fixes. Approximately $140 million will be used to ensure that the state can match all available federal aid highway funds. The remaining $240 million will be distributed to MDOT, county road commissions, and cities and villages. This is different from General Fund spending in each of the last two years when legislator we allowed to select projects throughout the state.

As a result of this budget agreement Cities and villages will receive and additional $56.8 million in FY 16. We will provide the breakdown of these additional dollars when they are available. Although more funding is being provided it still falls far short of the revenue needed and the Legislature cannot sustain the practice of one-time funding for a road fix long term.

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.

Committee Hearings Begin on House Transportation Proposal

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The newly formed Roads and Economic Development committee held the first of three committee hearings this morning on a package of bills introduced by House Republicans to fix Michigan’s crumbling roads.

HB 4610 allows townships contributing greater than 50% to a road project over $50,000 to require competitive bidding and the League has no position on this legislation due to it having no direct impact on our communities.

HB 4611 would require competitive bidding on all MDOT and local road projects over $100,000, and HB 4613 would require MDOT and local road agencies to secure warranties for projects over $1 million. We are currently opposed to these two bills as part of this package. The League believes we must find a sustainable long-term solution to the problem that includes new revenue that is dedicated to the entire transportation system.

The proposed package of bills only has $50 million in new revenue with the remaining billion coming from reprioritizing General Fund spending and projected growth. It neglects to make a much need investment in transit and jeopardizes economic development funding many of our communities benefit from. This plan impacts the long-term certainty our communities need to plan and one of the key factors for our opposition.

The League is committed to working with the legislature towards a long term solution and we are hopeful that solution can found sooner rather than later.

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.

 

Speaker Cotter Unveils House Republican Transportation Solutions

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At a press conference this afternoon Speaker Kevin Cotter released the House Republican transportation plan. The highlights are below.

  • This plan will generate $1.05 billion for transportation
  • $700 million from the General Fund
  • $185 million from Reprioritizing Restricted Funds
  • $162 million from Tax Fairness
  • Reforms and Efficiencies

General Fund: The $700 million the Speaker is proposing will come from expected future growth in revenues and additional anticipated revenue available based on the upcoming Consensus Revenue Estimating Conference. This portion of the plan lacked specifics so it is yet to be determined what impact this would have on the state budget moving forward but the Speaker said he would be able to do this without making cuts.

Reprioritizing Restricted Funds: Of the $185 million, $75 million will come from tobacco settlement dollars currently in the 21st Century Jobs Fund, $60 million from the states tribal gaming compact, and $50 million from eliminating the film tax credit.

Tax Fairness: The Speaker will achieve the projected $162 million through the creation of tax fairness by eliminating the Earned Income Tax Credit and using that $117 million for roads. The remaining $45 million will come from diesel parody and increased fees on electric and hybrid vehicles.

Reforms and Efficiencies: The plan will require competitive bidding on all MDOT and local road projects over $100,000, require MDOT and local road agencies to secure warranties for projects over $1 million, and allow townships contributing greater than 50% to a road project over $50,000 to require competitive bidding.

Other highlights in this plan include a phase in over four year with $522 million going to roads in FY 16, $697 million in FY 17, $872 million in FY 18, $1.05 billion in FY 19 and beyond. All of the new money would only be sent to MDOT, Counties, and Cities and Villages. None of the new money would go to transit operations. The current gas tax will remain at 19 cents but would be tied to inflation under this plan. A copy of the document Speaker Cotter provided can be found at the following link. House Republican Road Funding Plan

As the League gathers more details on this plan in the coming days we will be sure to update you with any new information.

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.

Proposal 1 Offers Michigan’s Last, Best Chance to Fix Roads with Guaranteed Funding

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John LaMacchia discusses Proposal 1 at a recent Burton City Council town hall meeting.

John LaMacchia discusses Proposal 1 at a recent Burton City Council town hall meeting.

The fate of Proposal 1 will be decided by voters next week (Tuesday, May 5), and there is one thing guaranteed about the outcome: If it passes it will provide a solution to fix Michigan’s crumbling infrastructure and will guarantee funding for transportation, local government, schools. And if it fails? No one can guarantee a solution out of the state Legislature.

That’s the simple message from the Michigan Municipal League’s John LaMacchia, legislative associate, in his many speaking engagements, media interviews and community meetings about Proposal 1 in recent days, weeks and months. LaMacchia has been the League’s voice on Proposal 1 after the League board unanimously endorsed the road funding package in January.

“The one thing that those for and against Proposal 1 agree on is the longer we take to come up with a transportation funding plan, the worse are roads are going to get,” LaMacchia said.

If Proposal 1 passes, it would guarantee, for the first time, that every penny we pay in state fuel taxes goes to transportation.

Bad-bridge-small-for-webLansing would no longer be able to divert taxes paid on gas to some other state program or service.

Here is some additional information about what Proposal 1 would do:

Ballot Proposal:

  • Raises the sales tax from 6% to 7%
  • Exempts sales tax from motor fuel
  • Removes higher education funding from the School Aid Fund
  • Dedicates a portion of the use tax to K-12 education

Statutory Changes Effective Only if Proposal 1 Passes:

  • Increases the tax charged on motor fuel
  • Eliminates the depreciation on vehicle registration fees
  • Increase registration fees on the heaviest trucks
  • Requires more competitive bidding and road warranties
  • Restores the Earned Income Tax Credit to 20% of the federal level

Revenue Generated:

We would fix more roads instead of just fill potholes if Proposal 1 passes May 5.

We would fix more roads instead of just fill potholes if Proposal 1 passes May 5.

Fixing our roads will make them safer by repairing dangerous potholes and improving roadway design. Today, many drivers swerve to avoid dangerous potholes or lose control of their vehicles as a result of flat tires.

According to TRIP, a national transportation research organization, roadway design is a contributing factor in about one-third of fatal traffic crashes. Between 2008 and 2012, 4,620 people died in Michigan car accidents – an average of 924 fatalities per year.

For more information about Proposal 1 go to the League’s Safe Roads Yes! webpage.

To learn more about the Safe Road Yes! campaign go here. View here a series of question and answer videos about Proposal 1. Check out what MML members have to say about Proposal 1. See how much your community will get in additional road dollars and constitutional revenue sharing if Proposal 1 is approved. View which Michigan communities have passed resolutions in support of Proposal 1.

Matt Bach is director of media relations for the Michigan Municipal League. He can be reached at mbach@mml.org. The League’s John LaMacchia can be reached at jlamacchia@mml.org.