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.

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.

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.

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.