Category Archives: Legislative Link Articles

After Serious Negotiations It Is Back To The Drawing Board On Transportation Funding

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Legislators spent the majority of the week once again trying to find a way to invest more money in Michigan’s roads. Talks began with the most serious negotiations of the summer and at one point there was some belief that a deal was close. At the end of the day though a final compromise was unable to be reached and the Governor and legislative leaders are back to the drawing board.

The potential deal was a plan based around increasing road funding by $1.2 billion, with $600 million coming from new revenue and $600 coming from existing revenue. The new revenue would come from a combination of gas taxes and registration fee increases. The $600 million in cuts to existing revenue remained undefined and was one of the major sticking points with many legislators.

Talks have already begun on finding a way to solve this problem but further action will not take place until after Labor Day at the earliest. The League has continued to voice our concerns over the use of a significant amount of unidentified existing revenue, the need to invest in transit, and that any solution should not put an unnecessary amount of new reporting requirements on our members

The League will be working hard to ensure our voice is heard as we move closer to a deal. We will continue to update you on any new details and how you can engage members of the Legislature in the coming weeks.

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.

Save the Date: Transportation Asset Management Conference

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The Transportation Asset Management Council will we holding there Fall Conference on October 15, in Marquette. The theme of this years conference will be investing in our future with data driven solutions.

For more information, contact Frank Kelley, Asset Management Coordinator at 517-373-2111 or kelleyf@michigan.gov, or visit us on the Web at: www.michigan.gov/tamc.

To register, contact the Michigan Local Technical Assistance Program (LTAP) at the Center for Technology & Training at 906-487-2102 or ctt@mtu.edu.

For a copy of the Save the Date flyer please click on the following link. 2015 FALL TAMC Save the Date

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.

League Highlights Potential Negative Impact of Using General Fund Revenue for Roads

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Although the Legislature made little progress this week in finding a solution to fix Michigan’s infrastructure needs, the League was very active in expressing our opposition to significant cuts to the General Fund.

On Monday we delivered a letter signed by the League and eight other organizations (Michigan Fraternal Order of Police, Michigan Association of Counties, Michigan Association of Police Organizations, Michigan League for Public Policy, Michigan Professional Fire Fighters Union, Michigan Townships Association, Police Officers Association of Michigan and Presidents Council, State Universities of Michigan) to all 110 members of the House expressing our serious concerns with using existing General Fund resources to improve Michigan’s infrastructure. A copy of the letter can be found at the following link. Final GF Concern Letter to Legislators

In addition to the letter the League requested much respected non-partisan former House Fiscal Agency Director Mitch Bean to look at the implications of SB 414.

Key findings in Bean’s report:

  • The state’s General Fund has declined 1.8 percent since FY 2001, and adjusted for inflation has declined 23 percent. No state in the nation has cut its budget more than Michigan over that period.
  • The state already faces revenue pressure from several tax changes scheduled to take effect in FY 2017-18, when SB 414 would take full effect.
  • Additional general fund spending pressures are also expected, given federal policy changes that will require more state support for basic human services.
  • If SB 414, as passed by the Senate becomes law, the likely impact on the FY 2017-18 General Fund (GF/GP) budget would be $450 million to $550 million in GF/GP budget cuts.
  • The state would have to cut between 11 percent and 13 percent from each department line item if they were able to reduce health and human services, and corrections spending, the two largest items in the GF budget, by a combined $100 million.

The report and a memo from the League was provided to every Legislator, the Governor, and the Capital Press Core. A copy of the memo and report can be found at the following link. Report for Legislators

The League will continue to work hard to ensure our voice is heard on the potential long-term negative impacts this proposal could have on our communities. We will continue to update you on the advancement of this proposal and how you can engage members of the Legislature in the coming weeks.

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 Asset Management Council Policy for Collection on Roadway Condition Data on (Paved) Non-Federal Aid Eligible Roads and Streets

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Since 2009, the Transportation Asset Management Council (TAMC) has been working with local road agencies to collect PASER data on the paved non-federal aid system. In 2009, the TAMC began a policy to annually budget to reimburse agencies for data collection of PASER data on up to one third of the State’s paved non-federal aid road system. Many local road agencies have taken part in this reimbursement program to the extent funds allowed. The TAMC is also aware of many local road agencies that periodically collect PASER data on the paved non-federal aid system without reimbursement from the TAMC.

The TAMC would like to request submission of paved non-federal aid PASER data that agencies may have collected for their own purposes. If a local road agency is currently collecting paved non-federal aid PASER data without TAMC reimbursement; the TAMC would like to kindly request submission of that data annually. Your submission of paved non-federal aid data, with or without reimbursement, allows the TAMC to have a better indication as to the status of the State’s paved non-federal aid road system. Data submitted before December 15th of each year can be included in the TAMC Annual Report.

For more information please click the following link. TAMC – Paved Non-Federal Aid

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.

Senate Passes Road Plan with $700 million in Unspecified General Fund Cuts

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Last night the Senate voted out a road funding plan that could ultimately raise $1.5 billion for roads, with two of the main pieces of legislation in the plan coming to a tie on the chamber floor.

The plan generates roughly $822 million by increasing the gas tax 15 cents and $700 million from unspecified General Fund budget cuts.

Eight bills — SB 0414, HB 4610, HB 4611, HB 4612, HB 4613, HB 4614, HB 4615 and HB 4616 — were passed through the Senate, but two of the main pieces of legislation were only moved after Lt. Gov. Brian CALLEY broke the tie.

Under HB 4615, the gas tax would go up 19 cents to 23 cents on Oct. 1, 2015; to 27 cents on Jan. 1, 2016, and 34 cents on Jan. 1, 2017, raising $475 million more for the roads in Fiscal Year (FY) 2016, $733 million in FY 2017 and $822.1 million in FY 2018, according the Senate Fiscal Agency (SFA).

The also also creates a lock box directing seven cents of the 15-cent gas tax increase to a fund controlled by the Department of Treasury that could only be spent after approval is given by joint resolutions of the House and Senate.

Under SB 414, a $350 million General Fund allocation would be made toward roads in Fiscal Year (FY) 2017 and a $700 million special roads allocation that would take place going forward until FY 2033.

The bill also includes a mechanism that would roll back the state’s income tax if General Fund revenue exceeds the rate of inflation. Every .1 percent that is rolled back from the state’s 4.25 percent income tax would equate to an additional $230 million reduction in the the state’s General Fund.

HB 4613 would require warranties, where possible, on all road projects over one million dollars. Additionally, this bill contain 23 new reporting requirements that local units of government must provide to MDOT.

The bottom line is that this plan does not provide a long-term sustainable solution to address Michigan’s deteriorating infrastructure. Additional earmarks from the General Fund and only allowing the General Fund to grow by inflation could severely affect the ability of the state to prioritize investment in communities that desperately need it. It could result in future cuts to revenue sharing, K-12, higher education, community colleges, economic development, PILT, fire protection grants, or state police.

The League will be working hard to ensure our voice is heard on the potential long-term negative impacts this proposal could have on our communities. We will continue to update you on the advancement of this proposal and how you can engage members of the Legislature in the coming days.

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.

 

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.

HHS Issues Final Recommendation for Community Water Fluoridation

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The Michigan Department of Health and Human Services (MDHHS) oral health program is pleased to announce that the U.S. Department of Health and Human Services recently released the final Public Health Service (PHS) recommendation for the optimal fluoride level in drinking water to prevent tooth decay.

The new recommendation is for a single level of 0.7 milligrams of fluoride per liter of water. It updates and replaces the previous recommended range (0.7 to 1.2 milligrams per liter) issued in 1962. The Office of Drinking Water and Municipal Assistance in the Michigan Department of Environmental Quality (DEQ) will continue to advise and assist community water systems to achieve this new recommendation.

In Michigan, the majority of the Public Water Systems adjust fluoride levels to be in line with this updated PHS community water fluoridation recommendation. Fluoridation of public water supplies in the United States began close to 70 years ago in Grand Rapids, Michigan. Currently, more than seven million Michigan residents have access to community water fluoridation to improve oral health.

For more information 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.

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.