Category Archives: Transportation, Transit

Tax policy Committee Takes Testimony on Sales and Use Tax Bills to Fund Roads

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Over the past two days the Tax Policy Committee has taken testimony on bills that would dedicate a portion of the general fund revenue from the sales tax collected at the pump and 1% of the use tax and dedicate that money to roads.

HB 5459 states that after all allocations and distributions are made, this includes the money that is sent to local communities through constitutional revenue sharing, the remaining balance will be used to fund our roads in accordance with percentages described in the transportation funding formula (Act 51). These percentages equal 39.1% to MDOT, 39.1% to County Road Commissions, and 21.8 to Cities and Villages. What this bill does not do is add additional dollars to the Comprehensive Transportation Fund and therefore public transit agencies across this state receive no increase in funding.

HB 5492 states the revenue generated from the use tax must first be reimbursed to the school aid fund and to communities for reimbursement for lost personal property tax revenue. Upon completion of those disbursements 1% shall be deposited into the Michigan Transportation Fund used to fund our roads in accordance with percentages described in the transportation funding formula (Act 51). This bill also does not do add additional dollars to the Comprehensive Transportation Fund resulting in no increase in funding for public transit.

Collectively these two bills will generate and additional $369 million for roads.

The League testified that while these bills preserve current funding and obligations to local communities, we have concerns about the continued dedication of General Fund dollars and the impact that this could have on our cities and villages in the future. The lack of investment in public transit is also an issue that needs to be addressed in these bills. We know that the economic and social benefits of having a great public transit system in Michigan is a key component to building vibrant communities.

These bills fall short of the sustainable long-term funding solution that is needed in Michigan. We will continue to work with members of the legislature to improve these bills and fix Michigan’s transportation needs.

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.

House Transportation Committee Begins Taking Testimony on Speaker’s Road Funding Plan

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The House Transportation Committee began taking testimony on Speaker Bolger’s plan to raise $450 Million dollars for roads. Offering testimony today was MDOT, Michigan Building and Construction Trades Council, and the County Road Association of Michigan.

The plan focused on four specific subject areas: increasing efficiencies, improving quality, improving fairness and investing current resources. That’s different from other plans that have focused on tax increases to improve the state’s roads.

 

The proposal includes ending the 19 cents per gallon tax on gasoline and 15 cents per gallon tax on diesel fuel and replacing them with a 6 percent tax on the price of fuel at the wholesale level. This would be a revenue neutral change for gasoline and raise $47 million in new revenue from those buying diesel fuel.

 

The proposal also includes efficiency measures such as more competitive bidding for local road agencies and the Department of Transportation, and would require that warranties on construction and preservation projects.

The plan would also increase fees on permits for overweight and oversize trucks, a move that would raise $4.5 million

Finally, the plan would use General Fund dollars generated from the use tax and the sales tax collected on gas and diesel at the pump, and dedicate those dollars to roads. This would generate $379 million.

The committee will continue to take testimony on Thursday (5/1). The League will be offering testimony thanking the Speaker for beginning the discussion on increasing road funding but that further work needs to be done on the proposed legislation to ensure a long-tern solution.

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.

Senate Transportation Budget Includes More Money for Locals

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The Michigan Senate Appropriations Committee voted out SB 777 that included and additional $115 million in road funding to be distributed between MDOT, counties, and cities and villages. From that $115 million cities and villages would receive $25 million. An amendment was added to the budget that would disperse the money in one lump sum payment in November of 2014 and not spread out the payments over the fiscal year. This bill will now go before the full Senate for a vote.

Also included in the budget was $2 million for the Regional Transit Authority for non-operational expenses.

This budget fails to address the long-term road funding needs in Michigan. The committee spoke about this at length and expressed their commitment to finding a solution. The League will continue to work with our partners in the Senate on this issue and we appreciate their continued efforts to solve Michigan’s infrastructure needs.

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.

 

House Appropriations Committee Votes out Transportation Budget

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The House Appropriations Committee voted out HB 5313 which included the transportation budget today by a vote 19-0 with all Democrats abstaining. Adjustments we made to the budget to reflect the changes that Speaker Bolger is proposing to increase funding to roads. As a result $391 million in general fund dollars will be appropriated to the transportation budget.

Many of the details are yet to be worked out and the League continues to have concerns about the use of general fund dollars supporting an increase in road funding. This budget also represents an increase in funding that still falls significantly short of the actual increase needed to support our transportation system. We hope to work with the Speaker and others on this issue to provide a long term funding solution that meets the infrastructure needs of this state.

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.

House Transportation Committee Takes Testimony on Speaker Bolger’s Road Funding Plan

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The House Transportation Committee took testimony today from Speaker Bolger on his $450 million road funding plan.

The plan focused on four specific subject areas: increasing efficiencies, improving quality, improving fairness and investing current resources. That’s different from other plans that have focused on tax increases to improve the state’s roads.

The proposal includes ending the 19 cents per gallon tax on gasoline and 15 cents per gallon tax on diesel fuel and replacing them with a 6 percent tax on the price of fuel at the wholesale level. This would be a revenue neutral change for gasoline and raise $47 million in new revenue from those buying diesel fuel.

The proposal also includes efficiency measures such as more competitive bidding for local road agencies and the Department of Transportation and requiring all projects more than $5 million to have a minimum five-year warranty.

The plan would also increase fees on permits for overweight and oversize trucks, a move that would raise $4.5 million.

The Michigan Municipal League believes that one of the most important aspects of creating a vibrant state is to have a quality transportation system. Unfortunately an additional $450 million annually falls far short of solving this problem long term. We hope to work with the Speaker and others on this issue to provide a long term funding solution that meets the infrastructure needs of this state.

The following link is a document made available by the House Republicans to help illustrate their plan.

Building Roads 4-14       

The League will continue to update our members on the specifics of this plan as more details become 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.

Speaker Bolger Unveils New Michigan Transportation Funding Plan

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A new plan from House Speaker Jase Bolger (R-Marshall) would increase the state’s annual investment in its roadways by at least $500 million annually.

Unveiled today, the plan would do that, in part, by converting the state’s flat gas tax to a tax based on a percentage of the wholesale price and by dedicating some current sales tax and use tax revenue to transportation needs.

The plan focused on four specific subject areas: increasing efficiencies, improving quality, improving fairness and investing current resources. That’s different from other plans that have focused on tax increases to improve the state’s roads.

The proposal includes ending the 19 cents per gallon tax on gasoline and 15 cents per gallon tax on diesel fuel and replacing them with a 6 percent tax on the price of fuel at the wholesale level. This would be a revenue neutral change for gasoline and raise $47 million in new revenue from those buying diesel fuel.

The proposal also includes efficiency measures such as more competitive bidding for local road agencies and the Department of Transportation and requiring all projects more than $5 million to have a minimum five-year warranty.

The plan would also increase fees on permits for overweight and oversize trucks, a move that would raise $4.5 million.

The Michigan Municipal League believes that one of the most important aspects of creating a vibrant state is to have a quality transportation system. Unfortunately an additional $500 million annually falls far short of solving this problem long term. We hope to work with the Speaker and others on this issue to provide a long term funding solution that meets the infrastructure needs of this state without potentially putting local funds in jeopardy.

The following links are two documents made available by the House Republicans to help illustrate their plan.

Building Roads 4-14          Road Funding board

The League will continue to update our members on the specifics of this plan as more details become 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.

Updated Local Agency Program Application Made Available by MDOT

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Effective April 1, 2014, the updated MDOT Local Agency Program Application Forms 0258, 0259, and 0260 were activated and made available on the MDOT Local Agency Program (LAP) website here as well as at the MDOT Forms page here.

The forms were updated mainly to:

• request information from the local agency regarding whether its project includes work in any MDOT right of way, or whether the proposed work affects any existing traffic signals or pedestrian signals. This information will allow MDOT LAP staff engineers to determine whether other MDOT units need to be involved in the project.

• revise ROW Attachments A and B, defining “property acquisition” as “permanent fee, permanent easements, temporary consents to construct, and grading permits”, hopefully resulting in a less confusing definition

• include space for the local agencies to list their designated Certified Computerized Office Technician (page 10 of each form), in accordance with current Bureau Of Highway Informational Memoranda (BOHIM)

• provide consistency in fonts and type faces

• changed references to the Transportation Alternative funding program

• correct several fields which were auto-filling incorrectly

Local agencies should begin using these forms as soon as possible, so that they can identify their certified computerized office technician and comply with the BOHIM.

If you have questions or need more information, please contact Bruce Kadzban, MDOT LAP Rural and Enhancement Program Manager, at 517-335-2229 or at kadzbanb@michigan.gov.

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.

 

House and Senate Transportation Budgets Include More Money For Locals

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Both the Senate and House Appropriations Subcommittee’s on Transportation reported out their budgets with additional money for local road agencies. Each of these budgets included an additional $115 million in a one-time general fund appropriation that will be distributed through the formula. As a result cities and villages across this state will see an increase of $25 million in the next fiscal year.

These budget recommendations will now go before the full appropriations committee for a vote. The League is supportive of these changes and would like to thank Chairman Papageorge and Chairman VerHeulen for their leadership on this issue.

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.

$215 Million for Roads Receives Governor’s Signature

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(Update: View a joint press release on this issue)

SB 608 has been signed by the Governor. The bill includes $215 million in general fund dollars for roads. Of that $215 million, $100 million will be distributed through the Act 51 formula to local road agencies to be used on maintenance as a result of this years harsh winter. It requires that the $100 million in special winter road maintenance funds be used only for road maintenance, excluding administrative, overhead, and other indirect costs.  The remaining $115 million will be used for priority road projects identified by individual lawmakers and prioritized by the Legislature’s leadership. An amendment was adopted that states if the money for priority road projects is not obligated by July 1, 2014 the remaining balance would be distributed through the Act 51 formula.

The League is very appreciative of the efforts of the legislature to deliver additional road funding to our local communities during this time of need. The League would also like to thank our members who took the time to contact their legislator on this issue. The following link will provide the amount each city and village will receive from the $100 million after it is distributed through the formula.

$100 Million Breakdown for Cities and Villages

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.

Additional Road Funding for Michigan Communities Awaits Governor Snyder’s Signature

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(Update: View a joint press release on this issue)

The Senate and House quickly approved SB 608 after the conference committee voted it out just before noon this morning and it now awaits the Governor’s signature. The bill includes $215 million in general fund dollars for roads. Of that $215 million, $100 million will be distributed through the Act 51 formula to local road agencies to be used on maintenance as a result of this years harsh winter. It requires that the $100 million in special winter road maintenance funds be used only for road maintenance, excluding administrative, overhead, and other indirect costs.  The remaining $115 million will be used for priority road projects identified by individual lawmakers and prioritized by the Legislature’s leadership. An amendment was adopted that states if the money for priority road projects is not obligated by July 1, 2014 the remaining balance would be distributed through the Act 51 formula.

It is anticipated this bill will receive the Governors signature before the end of the week. The League is very appreciative of the efforts of the legislature to deliver additional road funding to our local communities during this time of need. The League would also like to thank our members who took the time to contact their legislator on this issue. The following link will provide the amount each city and village will receive from the $100 million after it is distributed through the formula.

$100 Million Breakdown for Cities and Villages

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.