MDOT Accepting Transportation Economic Development Fund Category F Applications

The Michigan Department of Transportation Office of Economic Development is currently accepting Transportation Economic Development Fund Category F applications for Fiscal Year 2017. Eligible applicants include cities, villages and county road commissions. Proposed projects must be on federal-aid designated routes within federal aid urban areas located in a county with a population of 400,000 or fewer. Higher consideration is given to applications that propose improving all-season capabilities on routes having high commercial traffic or those that improve access to state trunklines.

The application deadline for Category F grants is Monday June 1, 2015. The application and instructions can be accessed at http://www.michigan.gov/tedf For questions, please contact Matt Wiitala, at 517-241-2152 or wiitalam@michigan.gov.

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 Program Urges Submission of Projects

The FHWA is undergoing an effort to modernize the FMIS 4 system to FMIS 5. This development is scheduled to be deployed on April 13, 2015. MDOT has been informed by FHWA that access to FMIS will be unavailable between April 1st and April 13th as they prepare for this conversion. MDOT is doing everything it can to prepare for these deadlines, but please take note that the access and functionality of FMIS 5 beginning April 13th (as with any IT deployments) has the potential to be faulty or unresponsive.

MDOT is requesting that any needs related to an initiation or modification for a job phase after April 1st and for the month of April be submitted by COB March 27th to be processed by MDOT and FHWA by March 30th. We do not want to risk any letting schedules or have project expenditures ineligible for federal reimbursement resulting from an authorization not being in place.

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.

The Transportation Asset Management Council Requests Nominations for its Organizational and Individual Achievement Awards

A primary objective of Michigan’s Transportation Asset Management Council (TAMC)
is to assist Act 51 agencies implement an asset management program for roads and
bridges under their jurisdiction. To this end, the TAMC has facilitated statewide
collection of system condition data, supported the development of tools and procedures,
and sponsored training and educational sessions in the practice of asset management.

To further aid Act 51 agencies, the TAMC has established the Organizational
Achievement Award to acknowledge those agencies that have incorporated the principles
of asset management and adopted an asset management plan to help guide their
investment decisions. In addition, the TAMC Awards Program provides agencies around
the state with excellent case examples to establish their own programs. All Act 51 road
agencies are eligible to be nominated for this award.

Additionally, the TAMC wants to recognize individuals providing outstanding support of
Asset Management and the TAMC. Nominees for the Individual Achievement Award can
include elected officials (state or local), support staff from state agencies, regional /
metropolitan planning organizations, county road commissions, local units of
government, the education community or other individuals involved in promoting
Michigan’s TAMC programs.

Further in information about the TAMC awards program can be found at the following link. TAMCAward_Criteria_2014

Nominations and/or any questions can be sent to Frank Kelley. He can be reached at KelleyF@michigan.gov or 517-373-211.

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 Bridge Program soliciting applications for Fiscal Year 2018

The Michigan Department of Transportation (MDOT) is soliciting applications for candidate projects for the Local Bridge Program. Selected projects will be funded during the 2018 fiscal year. The deadline for application is May 5th.

The FY 2018 Local Bridge Program Call for Applications letter, new Asset Management Bridge Inventory Data and Maintenance Plan Spreadsheet and a new Capitol Scheduled Maintenance Cost Estimate Worksheet are posted below.

FY 2018 Local Bridge Program Call for Applications

Bridge Repair Cost Estimate Worksheet 2015

Capital Scheduled Maintenance Estimate Worksheet 2015

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.

Comprehensive Transportation Solution Relies on Passage of Ballot Proposal

After a marathon final day of lame duck the House and the Senate were able to successfully put together the framework for a comprehensive long-term solution for investing in Michigan’s infrastructure. Although we would have liked the legislature to solve this problem independently, they approved a ballot proposal that will be put before the voters in May of 2015. This ballot proposal along with other statutory changes represents real investment in core areas that are critical to Michigan’s long term success. Below are the highlights of the transportation funding package.

Ballot Proposal:
– Raises sales and use tax from 6% to 7%
– Eliminates the sales tax on motor fuel
– Removes Higher Education from the School Aid Fund
– Amends the use tax distribution

Statutory Changes (Effective only if the ballot proposal passes):
– Switch to a percentage based wholesale tax on motor fuel and increase
– Increase the percentage based wholesale tax
– Changes to registration fees for vehicles and heavy trucks
– Transportation related reforms for warranties and competitive bidding on road projects
– Restore the Earned Income Tax Credit (EITC)
– Sales tax on internet sales (Main Street Fairness)

Net Impact of Changes in FY 2017-18
– $1.2 Billion in new revenue for roads
– $107 Million in new revenue for the Comprehensive Transportation fund for transit and rail
– $118 Million in new revenue for constitutional revenue sharing
– $394 Million in new revenue for the School Aid Fund
– $260 million in tax relief

A more detailed analysis will follow as additional information becomes 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.

Bill Allowing Locals to Allow for Late Night Liquor Sales Dies in House Committee

Senate Bill 247, a bill that would allow establishments licensed to sell alcohol in central business districts to stay open and serve alcohol until 4 a. m. on Saturdays and Sundays, expanding the current 2 a.m. limit, dies in House committee.

Senate Bill 247 would require a majority vote of a local unit of government to allow an establishment wishing to stay open until 4 a.m. on Saturdays and Sundays. They must be located in a central business district of the city, village or township to qualify. Licenses would cost $10,000 annually.

The Leagues supports this legislation and looks forward to working with Senator Smith on this issue next term.

Samantha Harkins is the Director of State Affairs for the League handling municipal finance issues.  She can be reached at sharkins@mml.org or 517-908-0306.

Michigan Water Environment Association to Host Seminar on Infrastructure Project Funding

Utility systems are continually being challenged to provide quality services while budgets are being decreased. This seminar has been developed to provide relevant information to Utility Owners, Managers, Superintendents, and Consultants associated with infrastructure systems. Attendees will be informed of current funding programs and what other utilities are doing to stay ahead of today’s challenges with infrastructure systems.

For more information on this helpful seminar being hosted by the Michigan Water Environment Association please click on the following link. 2015 Infrastructure Postcard

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.

Governor Snyder Approves Financial Assistance to Local Governments Affected by Spring Flooding, Deep Freeze

Governor Rick Snyder has approved more than $2.7 million from the Disaster and Emergency Contingency Fund to provide financial assistance to Michigan counties and communities impacted by last spring’s flooding disaster and deep freeze emergency.

Eligible local governments affected by the flooding or deep freeze were allowed to apply for assistance grants for up to $100,000 or 10 percent of the previous year’s operating budget, whichever is less.

The Disaster and Emergency Contingency Fund is used when communities demonstrate an exhaustion of local resources during a disaster or emergency. The money can be applied toward the immediate prevention, response and recovery of a disaster or emergency, as well as cover overtime for public employees, contracts used during the response, shelter supplies, gasoline used during the response and repair of public buildings and infrastructure.

Under extraordinary circumstances, the governor may authorize reimbursement from the fund to provide state assistance to counties and municipalities when federal assistance is not available.

Snyder declared a “state of disaster” on April 17 for Newaygo and Osceola counties due to severe weather and widespread flooding. On May 7, the disaster declaration was amended to include Isabella, Mecosta, Missaukee, Muskegon, Roscommon and Wexford counties.

Snyder declared a “state of emergency” for Marquette County on April 17 due to the damage caused by last winter’s extremely cold temperatures and deep frost levels. On May 7, the emergency declaration was amended to include Charlevoix, Cheboygan, Chippewa, Delta, Emmet, Gogebic, Luce and Mackinac counties.

In July, the Michigan State Police, Emergency Management and Homeland Security Division was notified by the Federal Emergency Management Agency that northern Michigan communities affected by the deep freeze did not meet the required statewide federal threshold for consideration for a presidential disaster declaration.

In October, the Michigan Strategic Fund approved more than $7.6 million in aid to communities in northern Michigan and the Upper Peninsula through the Community Development Block Grant program to assist in repairing critical infrastructure damaged by last winter’s deep freeze.

The state of Michigan continues to monitor the situation and is looking at all options to ensure communities recover and rebuild after these incidents.

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 Funding Bills Sent to Conference

In the second to last week of lame duck session, tensions were high as transportation talks continued. The House and Senate sent the transportation bills to conference committees where a small bi-partisan group of six legislators will ultimately vote on the conference report being negotiated by legislative leadership and the Governor. The conferees in the Senate are Sen. Arlan Meekhof (R-Holland), Sen. Mike Kowall (R-White Lake) and Sen. Jim Ananich (D-Flint). The House conferees are Rep. Jim Stamas (R-Midland), Rep. Rob VerHeulen (R-Walker) and Rep. Marilyn Lane (D-Fraser). The legislative leadership and Governor have met for several hours in each of the last few days on this issue, and we anticipate some sort of resolution 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

Speaker Bolger Road Funding Plan Voted Out of the House

House Speaker Jase Bolger’s (R-Marshall) transportation funding plan, which would shift dollars that currently go to local governments, schools, transit, and the general fund to roads, was voted out of the House without a single democratic vote.

The plan relies on projected revenue increases, which supporters say will more than counter-balance the revenue shift. In an attempt to keep local funding at current levels, language was added to the bill that says if state spending on local governments falls below the previous year, the sales tax phase-out would be repealed. The League has very serious concerns and is continuing to express its strong opposition to this plan. Holding communities harmless and not allowing them to benefit from a growing economy by shifting money over to road funding is not the comprehensive solution for which the League is advocating.

Members voted 56-53 for HB 4539, which would phase out the sales tax on gasoline over six years. The bill would remove 1 percent of the 6 percent sales tax each year from 2016 to 2020. HB 5477 would gradually increase the state’s gasoline tax to balance out the drop in the sales tax over that same time period. Eventually, the sales tax on gas would be 0 percent and the state’s new wholesale gasoline tax would be 13.5 percent, resulting in a $1.1 billion increase in Act 51 allocation. This plan also results is a $48 million cut to the Comprehensive Transportation Fund (CTF), which funds public transit, by 2020.

Additionally, all new transportation revenue generated under the plan would go to only the State Trunk Line Fund, counties, cities and villages. The CTF would lose out on another $97 million in new revenue by not allocating the money to the full Act 51 formula. At a time when we should be investing in public transit in Michigan as a way to attract and retain talent, this plan significantly reduces the current investment in public transit.

For the fiscal analysis please click here.

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.