Tag Archives: budget surplus

Transportation Budget Sees Increase Due to Budget Surplus

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The Conference Committee on Transportation voted out a budget today that included an additional $350 million dollars. Those dollars will be split two ways, $121 million going to the Federal Aid Match Requirement and the remaining funds into a new Priority Roads Investment Program. This increased funding is a direct result of the budget surplus.

The Priority Roads Investment Program will have $115 million available to spend this year with the remaining carrying over to the following year. The legislature will be responsible for appropriating the money to specific projects around the state.

With no deal on new transportation funding the budget did not include the recommended $1.2 billion Governor Snyder requested. The Governor is still committed to to solving the need for greater investment in transportation and will be working with the legislation over the next few weeks, and likely the coming months, to come to an agreement on increase funding for transportation.

John LaMacchia is a Legislative Associate with the League handling transportation issues. He can be reached at jlamacchia@mml.org or 517-908-0303.

League Encourages State to Put Surplus Toward Restoring Revenue Sharing Cuts

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LANSING, Michigan – A report saying the state of Michigan has nearly $400 million has the Michigan Municipal League requesting that the state use some of that surplus to restore massive cuts made to local revenue sharing. A consensus report released today (May 15, 2013) by state economists shows that revenues for the current fiscal year are $396.9 million higher than expected for the general fund for the current 2012-13 fiscal year.

The Michigan Municipal League has responded to this announcement by issuing a press release to media throughout Michigan calling for a portion of that surplus to go back to Michigan communities. View the League’s press release here. View an mlive.com article about the budget surplus that includes mention of the League’s request.

Here’s a portion of the press release:
“Over the past dozen years, the Legislature and governor have cut local revenue sharing by more than $6 billion, breaking promise after promise and ignoring statutes that require the appropriations to local communities,” said Daniel Gilmartin, CEO and executive director of the Michigan Municipal League, in the press release. “Instead of appropriating the funds for local services, Lansing used the funds to fill holes in the state budget, to cut taxes, and for other state programs and services. While we recognize the state’s economy was in bad shape, and many state budgets were cut, local revenue sharing paid a far higher price than all the others.”

Gilmartin said the state budget surplus gives the Legislature and governor the opportunity to return some of the cuts they made to local services that keep people safe in their neighborhoods, keep local drinking water clean, maintain local roads and bridges, fund local parks and libraries, and more.

“The state Senate has proposed a 4.8-percent increase in local revenue sharing for the 2014 state budget. Given the anticipated state budget surplus, anything less than that is unacceptable and unconscionable,” Gilmartin said. “I promise that local leaders and their constituents will remember if the Legislature fails to invest part of the surplus to restore some of the massive cuts Lansing has made to revenue sharing and essential local services.”

Gilmartin said that using the surplus to restore cuts to revenue sharing “becomes critical” if the personal property tax (PPT) law passed by the Legislature in December is approved by Michigan voters next year.The PPT law would cut local taxes paid by local businesses to local communities across the state by hundreds of millions of dollars. The law will not take effect unless it is approved by Michigan voters in August 2014. The Legislature has not yet voted to put the question onto the ballot.

Matt Bach is director of communications for the Michigan Municipal League. He can be reached at (810) 874-1073 and mbach@mml.org.