Tag Archives: Transportation Funding

House Appropriations Committee Votes out Transportation Budget

Posted on by

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

Posted on by

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

Posted on by

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.

House and Senate Transportation Budgets Include More Money For Locals

Posted on by

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.

Governor’s Transportation Budget Does Not Include Long-Term Funding Solution

Posted on by

The Governor has release his annual budget recommendations but they did not include a long-term solution for transportation funding. The budget included $3.4 billion in ongoing funding and $254 million in on-time general fund spending for 2015.

The $254 million in general fund dollars will be split into two areas. Current transportation revenues are no longer sufficient to match all of Michigan’s available transportation aid. A total  of $139 million will be used to leverage federal dollars. The remaining $115 million will be used for state trunkline road and bridge projects.

The Governor states that he is still committed to securing a comprehensive transportation funding solution. The League appreciates his commitment to the issue but what we need is action. For to long we have neglected our infrastructure in this state and our local communities and their residents are bearing the cost as a result. It is time to address this issue and the League is fully committed to helping find a solution. An investment in our local infrastructure is critical for our state to thrive.

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 Budget Sees Increase Due to Budget Surplus

Posted on by

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.