TRANSPORTATION

Summary:  FY 2009-10

Conference Report for Senate Bill 254 (S-2)

Analyst:  William E. Hamilton

FY 2009-10

FY 2009-10

FY 2009-10

FY 2009-10

Difference:  Conference

From FY 2008-09 YTD

FY 2008-09 YTD *

Executive

Senate

House

Conference

Amount

%

IDG/IDT

$0

$0

$0

$0

$0

$0

0.0

Federal

1,460,995,800

1,226,704,500

1,226,704,500

1,227,204,500

1,227,204,500

(234,291,300)

(16.0)

Local

71,624,200

56,073,400

56,073,400

56,073,400

56,073,400

(15,550,800)

(21.7)

Private

0

0

0

0

0

0

0.0

Restricted

2,068,009,200

1,985,343,000

1,961,843,000

1,973,383,000

1,974,470,100

(93,539,100)

(4.5)

GF/GP

0

0

0

0

0

0

0.0

Gross

$3,600,629,200

$3,268,120,900

$3,244,620,900

$3,256,660,900

$3,257,748,000

($343,381,200)

(9.5)


FTEs

3,014.3

3,014.3

3,014.3

3,014.3

3,014.3

(0.0)

(0.0)

* FY 2008-09 YTD figure in this analysis reflects the $12.0 million reduction made in Executive Order 2009-22, and a $400,000 supplemental appropriation enacted as 2009 PA 64.  The YTD figure does not include the supplemental appropriation of federal stimulus funds from the American Recovery and Reinvestment Act of 2009 (ARRA) made in 2009 PA 3 and 2009 PA 38.  We felt that inclusion of ARRA funds in this analysis would distort year-to-year comparison.  To date, $903.4 million in ARRA funds have been appropriated in FY 2008-09.  If ARRA funds were included, the total YTD authorization would be $4,504,034,200.

Overview

The transportation budget supports state and local highway programs, public transportation programs, aeronautics programs, and administration of the Michigan Department of Transportation (MDOT).  Approximately two-thirds of the budget is from constitutionally-restricted state revenue sources—primarily motor fuel taxes and vehicle registration taxes.  These state revenues are first credited to the Michigan Transportation Fund (MTF) for distribution to other state transportation funds and programs, and to local road agencies, in accordance with 1951 PA 51.  Approximately one-third of the budget is federal revenue.  There is no state GF/GP revenue in this budget.

Major Budget Issues

Conference Report reflects a continuation budget; it follows the original Executive recommendation which proposed no new programs or revenue.  Line item changes primarily reflect economic adjustments and/or adjustments of estimated restricted or federal revenue. 

Conference Report appropriates:

▪ $794.4 million for State trunkline construction programs – $248.6 million less than the current year, reflecting anticipated reductions in state restricted revenue and estimated federal spending authority.

▪ $886.1 million MTF ($568.9 million to county road commissions, $317.2 million to cities/villages).  The appropriation is based on February 2009 MTF revenue estimates and Act 51 distribution formula; final distribution will be based on actual MTF revenue, which may be more or less than appropriations.

▪ $230.5 million from the Comprehensive Transportation Fund (CTF) for public transportation programs; $10.1 million less than the current year, reflecting anticipated reduction in CTF revenue.  The Conference Report not recognize the Senate-proposed $11.5 million redirection of auto-related sales tax from the Comprehensive Transportation Fund (CTF) to the state General Fund, and generally follows the Executive recommendation with regard to CTF-funded public transportation programs, including Local bus operating assistance, and Rail passenger programs.

The Conference Report:

▪ Reflects a proposed redirection of $12.0 million from Category A (Target Industries) of the Transportation Economic Development Fund (TEDF) program

▪ Includes a $40,000 boilerplate earmark related to theTEDFForest roads program

▪ Recognizes a $500,000 (federal) increase in debt service

▪ Includes a $1.1 million Interdepartmental Grant (IDG) from the MTF for the MDEQ permitting program

The Conference adopts new language regarding the Detroit River International Crossing (DRIC) in Section 384.


Major Budget Changes From FY 2008-09 YTD Appropriations

FY 2008-09 YTD

Conference Change

From YTD

1.      Debt Service

Appropriations $251.6 million for FY 2009-10, reflecting anticipated debt service schedules.

 

Conference Report adopts House (revised Executive) – $500,000 more in federal authorization than the original Executive recommendation and Senate-passed bill.

Gross

Federal

Restricted

$192,003,600

22,783,300

169,220,300

$59,633,700

35,380,200

24,253,500

2.      Grants to Other State Departments

Reflects economic increases of $923,600.  Appropriation includes MTF IDGs to Department of State, $20.0 million (same as current year), and Department of Treasury, $7.4 million ($289,900 more than current year) for cost of collecting MTF revenue.

Conference Report includes a $1,087,100 MTFIDG to MDEQ for permitting functions; the Executive had proposed turning this function to the federal government.

Gross

Restricted

$48,949,800

48,949,800

$852,500

852,500

3.      Executive Direction

Appropriates $5,803,800; reflects economic increases of $61,500.

Senate and House agree with Executive recommendation in total but the Senate had unrolled Unclassified salaries into six separate lines for Director, Communications Director, Government Affairs Director, Business Development Director, and UPTRAN Director, and had unrolled the Office of Commission Audits line into separate lines for salaries and fringe benefits, travel, and other operating expenses.

Conference Report concurs with Executive/House.

FTEs

Gross

Restricted

37.3

$5,742,300

5,742,300

(0.0)

$61,500

61,500

4.      Business Support

The appropriations unit includes line items for Business support, Economic development and enhancement, Property management, and Worker's compensation.

Appropriates $17,594,900.  Line reflects economic increases of $514,200; transfer of Civil service costs, $3,000; and internal cost allocation, ($62,300).

Senate reduced CTF funding by $25,400 in order to increase Marine passenger funding.  Conference Report concurs with the Senate appropriation, but does not unroll lines to salary and wages/travel/ other operating expense detail.

FTEs

Gross

Restricted

57.0

$17,165,400

17,165,400

(0.0)

$429,500

429,500

5.      Information Technology

Reflects economic adjustments, $222,900; administrative reductions, ($5,900); reduction in virtual storage costs, ($6,600); One-stop Portal development, $97,300; and Microsoft Office update, $509,300.

Conference Report concurs with Executive/Senate/House.

Gross

Federal

Restricted

$28,496,200

500,300

27,995,900

$817,000

10,500

806,500

6.      Finance, Contracts, and Support Services

Appropriates $25,058,300; reflects economic increases, $542,300; and position transfers, $82,100.

Executive had recommended roll-up of four operating lines (Financial operations, Contract services, Departmental services, and Performance excellence) into a single line.  Senate retained five programmatic line items and further unrolled into separate lines for salaries and fringe benefits, travel, and other operating expenses.

Conference Report adopts the programmatic roll-out from the current year but does not unroll to into separate lines for salaries and fringe benefits, travel, and other operating expenses. 

FTEs

Gross

Restricted

242.5

$24,686,500

24,686,500

1.0

$371,800

371,800

7.      Transportation Planning

Appropriates $36,616,600; reflects economic increases of $504,600; and internal cost allocation, ($214,900); and position transfers, ($82,100).

Senate had reduced CTF support by $215,300; and unrolled.

Conference Report concurs with the House/Executive.

FTEs

Gross

Federal

Restricted

177.0

$36,156,400

22,000,000

14,156,400

(1.0)

$460,200

0

460,200

8.      Design and Engineering Services

Appropriates $114,201,500; reflects economic increases of $3.2 million, additional funding for intelligent traffic systems, and $2.5 million additional federal support for Safe Routes to Schools Program.  Reduction in budgeted FTEs due to position transfers.

House/Senate agreed in total but Senate unrolls lines into separate lines for salaries and fringe benefits, travel, and other operating expenses.

Conference Report adopts the programmatic roll-out from the current year.

FTEs

Gross

Federal

Restricted

1,496.8

$108,028,500

18,912,600

89,115,900

(2.0)

$6,173,000

4,617,200

1,555,800

9.      State Trunkline Maintenance

Appropriates $286,528,100; reflects economic increases of $1.6 million, and $182,600 related to positions transfers.   Executive proposed roll-up of two current line items.

House and Senate agreed with the Executive in total, but unroll into current two programmatic lines: State trunkline operations; and Contract operations

Conference Report adopts the current-year programmatic roll-out.

FTEs

Gross

Restricted

832.7

$284,728,200

284,728,200

2.0

$1,799,900

1,799,900

10.    State Trunkline Road and Bridge Construction

Appropriates $794.4 million for state capital construction/reconstruction program. Reflects decrease in estimated available state restricted revenue, and estimated federal aid revenue.

To show a more consistent baseline, we do not show federal stimulus funding, appropriated in House Bill 4582, in the YTD figure.

Gross

Federal

Local

Restricted

$1,043,058,100

892,420,900

30,000,000

120,637,200

($248,639,300)

(185,208,300)

0

(63,431,000)

11.    Local Federal Aid Road and Bridge Construction

Appropriates $248.8 million based on estimated federal revenue and Act 51 directive that 25% of most federal aid program funds be made available to local road agencies.

To show a more consistent baseline, we do not show federal stimulus funding, appropriated in House Bill 4582, in the YTD figure.

Gross

Federal

$309,592,000

309,592,000

($60,841,000)

(60,841,000)

12.    Grants to Local Programs

No change in this Act 51 earmark to local road agencies.

Gross

Restricted

$33,000,000

33,000,000

$0

0

13.    Rail grade crossing

No change in this Act 51 earmark to local road agencies.

Gross

Restricted

$3,000,000

3,000,000

$0

0

14.   Local Bridge Fund

Act 51 earmark; reduction reflects anticipated reduction in gasoline tax revenue.

Gross

Restricted

$28,336,800

28,336,800

($1,431,800)

(1,431,800)

15.    MTF Distribution to Local Road Agencies

Appropriates $886.1 million MTF ($568.9 million to county road commissions,$317.2 million tocities/villages) based on February 2009revenue estimates     and Act 51 formula; final distribution will be based on actualMTF revenue, which may be more or less than appropriations.

Gross

Restricted

$931,570,800

931,570,800

($45,425,400)

(45,425,400)

16.   Blue Water Bridge

Appropriates $5,401,200 – reflects economic increases. 

Conference follows the House bill and does not unroll lines.

FTEs

Gross

Restricted

41.0

$5,328,500

5,328,500

.0

$72,700

72,700

17.    Transportation Economic Development (TEDF) Fund

The FY 2008-09 YTD figure reflects Executive Order 2009-22 which reduced current year funding for Category A by $12.0 million.

Appropriates $33,767,000; reflects proposed transfer of $12.0 million in driver's license fee revenue to the state General Fund; taken from Category A, (Target Industries).  Reduction partially offset by reduction in TEDF debt service.  Includes $40,000 earmark forForest roads truck turnouts.

Gross

Restricted

$30,332,200

30,332,200

$3,434,800

3,434,800

18.    Aeronautics and Freight Services

Appropriates $11,230,400; reflects economic increases, $200,400; and $310,300 reduction in anticipated SAF revenue.  Executive proposed roll-up of two current Aeronautics lines, Airport improvement services, and Aviation services, into a single line.

Senate had reduced CTF funding for Freight and Safety Services by $308,300, and unrolled into separate lines for salaries and fringe benefits, travel, and other operating expenses.

Conference concurs with Executive/House.

FTEs

Gross

Restricted

84.0

$11,340,300

11,340,300

0.0

($109,900)

(109,900)

19.    Passenger Transportation Services

Appropriates $5,455,400; reflects economic increases.

Senate had reduced CTF by $898,300 and unrolled into separate lines for salaries and fringe benefits, travel, and other operating expenses.

Conference concurs with Executive/House.

FTEs

Gross

Federal

Restricted

46.0

$5,339,400

762,100

4,577,300

0.0

$116,000

0

116,000

20.    Bus Transit – Local Bus Operating Assistance

Appropriates $166.6 million (CTF) for state operating assistance to local public transit agencies; unchanged since FY 2006-07.

Senate had appropriated $162.3 million; reduces CTF funding by $4.3 million.

Conference concurs with Executive/House.

Gross

Restricted

$166,624,000

166,624,000

$0

0

21.    Bus Transit – Non-Urban Operating/Capital

Recognizes anticipated increase in federal non-urban transit grants in 2010.

To show a more consistent baseline, we do not show federal stimulus funding, appropriated in House Bill 4582, in the YTD figure.

Gross

Federal

Local

$19,300,000

18,500,000

800,000

$2,500,000

2,500,000

0

22.    Freight Property Management

(Intercity Passenger & Freight)

Appropriation same as current year.

Gross

Restricted

$1,000,000

1,000,000

$0

0

23.   Detroit Wayne County Port Authority

(Intercity Passenger & Freight)

Appropriates $468,200; reflects anticipated reduction in CTF revenue.

Senate had appropriated $368,500; $100,000 less CTF than Executive.

Conference concurs with Executive/House.

Gross

Restricted

$500,000

500,000

($31,800)

(31,800)

24.    Intercity – Intercity Services

(Intercity Passenger & Freight)

Appropriates $7,250,000; reflects reduction in anticipated CTF revenue ($1,175,000); partially offset by $1,000,000 increase related to anticipated sale of intercity buses for loan program.

Line supports intercity bus transportation. 

Gross

Federal

Local

Restricted

$7,425,000

4,500,000

50,000

2,875,000

($175,000)

0

0

(175,000)

25.    Rail Passenger Service

(Intercity Passenger & Freight)

Provides operating assistance for Port Huron/Chicago and Grand Rapids/Chicago rail service with state restricted funds; federal revenue providescapital assistance.  The FY 2008-09 YTD figure reflects supplemental appropriation of $400,000 (CTF) which provided rail passenger service throughSeptember 30, 2009.

Conference Report appropriates $8,667,000; recognizes reduction Federal Railroad Administration grant and anticipated reduction in CTF revenue.  The appropriation from the CTF for this line, which provides funding for the AMTRAK operating contract, would be $5,667,000 CTF, $1.6 million less than the current year.  The appropriated amount supports only a partial-year AMTRAK operating contract.

Gross

Federal

Restricted

$13,100,000

5,800,000

7,300,000

($4,433,000)

(2,800,000)

(1,633,000)

26.    Freight Preservation and Development

(Intercity Passenger & Freight)

Reflects reduction in anticipated CTF revenue.

Gross

Federal

Restricted

$5,092,900

100,000

4,992,900

($1,728,700)

0

(1,728,700)

27.    Rail Infrastructure Loan Program

(Intercity Passenger & Freight)

Line item eliminated due to reduction in anticipated CTF revenue.

Gross

Restricted

$300,000

300,000

($300,000)

(300,000)

28.    Marine Passenger Service

(Intercity Passenger & Freight)

Appropriates $400,000, same as current year.

Gross

Restricted

$400,000

400,000

($25,400)

(25,400)

29.    Terminal Development

(Intercity Passenger & Freight)

Appropriates $150,000; reflects reduction in anticipated CTF revenue.

Gross

Restricted

$550,000

550,000

($400,000)

(400,000)

30.    Specialized Services

(Public Transportation Development)

Appropriates $7,248,100; reflects anticipated federal and local revenue, and anticipated reductions in CTF revenue.  Line item supports transit programs for elderly and disabled citizens.

Gross

Federal

Local

Restricted

$9,500,100

2,700,000

2,700,000

4,100,100

($2,252,000)

(1,000,000)

(1,000,000)

(252,000)

31.    Municipal Credit Program

(Public Transportation Development)

Appropriates $1,873,000; reflects reduction in anticipated CTF revenue, less than Act 51 earmark of not less than $2,000,000.

Gross

Restricted

$2,000,000

2,000,000

($127,000)

(127,000)

32.    Bus Capital

(Public Transportation Development)

Provides matching funds for Federal Transit Administration (FTA) grants to local transit agencies; reflects anticipated FTA grants distributed through this budget; anticipates reduction in available CTF matching revenue.

Conference appropriates $38,178,200; of which, $5,178,200 CTF would be available to match federal grants.

Gross

Federal

Local

Restricted

$40,803,000

26,400,000

5,000,000

9,403,000

($2,624,800)

1,600,000

0

(4,224,800)

33.    Van Pooling

(Public Transportation Development)

Same as current year

Gross

Restricted

$195,000

195,000

$0

0

34.    Service Initiatives

(Public Transportation Development)

Appropriates $1,050,000; reflects reduction in anticipated CTF revenue.

Gross

Federal

Local

Restricted

$1,116,500

800,000

200,000

116,500

($66,500)

0

0

(66,500)

35.    Transportation to Work

(Public Transportation Development)

Reflects estimated federal/local revenue; reduction in anticipated CTF revenue.

Gross

Federal

Local

CTF

$9,244,000

2,200,000

2,200,000

4,844,000

($107,600)

100,000

100,000

(307,600)

36.    AERO Capital Projects

Provides estimated funding for FY 2009-10 Aeronautics Capital program.

To show a more consistent baseline, we do not show federal stimulus funding, appropriated in House Bill 4308, in the YTD figure.

Gross

Federal

Local

Restricted

$167,491,700

133,024,600

30,674,200

3,792,900

($44,066,000)

(28,149,900)

(14,650,800)

(1,265,300)

37.    State/Local Capital Facilities Projects

Provides funds for other capital outlay projects (salt storage facilities,TransportationService Center, Institutional and Agency road program, other facility special maintenance projects).  Only special maintenance would be funded in FY 2009-10 due to reduced STF revenue.

Gross

Restricted

$9,132,000

9,132,000

($6,844,000)

(6,844,000)

38.    Economics

The State Budget Office estimated additional costs to provide baseline service levels: $1.8 million increase to reflect salaries/wages, $1.2 million related to health insurance, and $3.5 million increase for retirement contributions.  Projected workers compensation and building occupancy costs would decrease by $337,300 and $669,700 respectively.

Gross

Restricted

N/A

N/A

N/A

$6,872,000

6,872,000

Major Boilerplate Changes From FY 2008-09

Sec. 201.  Total State Spending and Payments to Local Units of Government– Updated

Identifies total state spending in Part 1 and state payments to local units of government.

Sec. 202.  Management and Budget Act – Retains

References the Management and Budget Act.

Sec. 203.  Abbreviations – Retains

Defines abbreviations used in Act.

Sec. 204.  Civil Service 1% Billing – Retains

Sec. 205.  Hiring Freeze – Retains

Establishes a hiring freeze on state classified civil service.

Sec. 206.  Contingency Appropriations – Retains

Provides for contingency appropriations in accordance with Section 393(2) of the Management and Budget Act, $200.0 million federal; $40.0 million state restricted, $1.0 million in local, and $1.0 million private funds.

Sec. 207.  Privatization – Retains

Provides for reports on privatization activities and defines privatize and privatization.

Sec. 208.  Internet Reports – Retains

Provides for use of Internet to fulfill reporting requirements.

Sec. 209.  Foreign Goods and Services — Modifies

Prohibits use of foreign goods and services if comparatively priced and comparable quality American goods and services are available.  Directs Department to give priority toMichigan goods and services, and to businesses owned byMichigan veterans.

Conference adopts House language and replaces "should" with "shall".

Sec. 210.  Deprived and Depressed Communities  — Modifies

Requires director to take reasonable steps to ensure that businesses in deprived and depressed communities compete for contracts to provide services or supplies or both.

Conference adopts House language and replaces "should" with "shall".

Sec. 211.  Receive and Retain Reports– Retains

Provides guidelines regarding record retention.

Sec. 258.  Department of Information Technology Work Projects – Retains

Provides carryforward funds to support technology projects.

Sec. 259.  Department of Information Technology User Fees – Retains

Provides for user fees to be paid to Department of Information Technology.

Sec. 260.  Out-of-State Travel – Retains

Establishes limitation on out-of-state travel and creates travel reporting requirement.

Sec. 261.  Employee Discipline – Retains

Prohibits departments and agencies from taking disciplinary action against an employee for communicating with legislator or legislative staff.

Sec. 262.  Hire of Outside Legal Counsel– Retains

Prohibits department from hiring a person to provide legal services that are the responsibility of the Attorney General; exempts bond counsel.

Sec. 263.  Impact of New Legislation and Administrative Rules– Retains

Requires a report, byApril 1, 2008, on specific policy changes adopted to implement new public acts.  Prohibits the Department from adopting administrative rules that have a disproportionate impact on small business.

Conference concurs with Senate and retains (updates report due date).

Sec. 264.  Continuous Improvements– Retains

Requires department director to implement "continuous improvement efficiency mechanisms." 

Conferenceconcurs with Senate/House and updates report due date toMarch 1, 2010.

Sec. 265.  Travel Restriction– Retains

Limits out-of-state travel for conferences/professional development.

Conference concurs with Senate and retains (updates report due date).

Sec. 265.  New –Transparency –NEW

House adds new language requiring internet reporting of expenditures – limits cost to $10,000.

Conferenceconcurs with House

Sec. 301.  Permit Fees/Bridge Tolls– Modifies

Provides for permit and FOIA processing fees; provides process for raising bridge tolls.

The Executive modifies subsection (1) to indicate permit fees are non-refundable, and to allow credit to applicable fund.

Conferenceconcurs with Senate/House and adopts modified language.

Sec. 303.  Legislative Report– Retains

Provides for report (on request) of funds received by city, village, and county road commission by legislative district.

Conferenceconcurs with Senate and retains.

Sec. 304.  Confidentiality of Bid Documents– Retains

Provides for confidentiality of highway project bid documents.

Sec. 305.  Lease of Space in Public Transportation Property– Retains

Requires lease of space in public transportation facilities at market rates; requires that revenue be used for property maintenance.

Sec. 306.  Use of Transportation Funds by Other State Agencies/Biennial Audit of Transportation Funds

 (PARTIAL VETO in 2009)

Sets guidelines for use of transportation funds (grants) by other state agencies; requires report.  Provides for biennial audit of use of transportation funds by other state departments, due 9 months after state CAFR is issued.

Governor vetoed subsection 3 which required the State Treasurer to identify actual cost of work performed by Michigan Department of Treasury for state-restricted transportation funds.

Conferenceconcurs with Senate and includes all four subsections.

Sec. 307.  Rolling Five-Year Plan– Retains

Requires Department to provide a rolling five-year highway construction plan by March 1 of each year.

Sec. 308.  Contract Compliance –Retains

Requires that Department and local road agencies pursue compliance with contract specifications for construction and maintenance; provides for sanctions for unsatisfactory contractors; requires a report.

House also adopts new language which prohibits lifting a contractor's prequalification until all administrative appeals have been exhausted.

Conference retains current year.

Sec. 309.  Administrative Costs— Modifies

Requires Department to reduce administrative costs.

Conferenceconcurs with House and adds the phrase "continue its efforts to reduce…"

Sec. 310.  State Transportation Commission Minutes/Agenda – Retains

Requires Department to provide copies of minutes and agenda to Legislature.

Sec. 312.  State Trunkline Fund Carryforward – Retains

Allows carryforward authority for STF; appropriates for state trunkline federal aid and road and bridge program.

Sec. 313.  State Infrastructure Bank – Retains

Provides guidelines for State Infrastructure Bank program.

Sec. 314.  Report on Internal Auditor – Retains

Provides for report on activities of internal auditor; report due February 1st of each year.

Sec. 319.  Rest Area Maintenance– Retains

Requires signs/telephone numbers for reporting unclean and unsafe conditions at rest areas.

Sec. 324.  Construction Zone Traffic Law Enforcement – Retains

Earmarks $500,000 from STF for construction zone traffic law enforcement and the “Give ‘em a brake campaign.”

Sec. 334.  Women- and Minority-Owned Businesses Program – Retains

Requires Department to continue MBE/WBE program; September 30th reporting requirement.

Sec. 353.  Prompt Payment – Retains

Directs Department to review contractor payment process to ensure that contractors and subs are paid promptly.

Conferenceretains current year language.

Sec. 357.  Local Federal Aid Project Review – Retains

Directs Department to complete project reviews within 120 days; requires system for monitoring review process.

Sec. 358.  NEW FTE Report  -- NEW

House adds new report language.

Conferenceconcurs with House.

Sec. 361.  Bureau of Multi-Modal Transportation Services – Not Included

Requires Department to report on any change in bureau services or functions as approved by the State Transportation Commission.

Conferenceconcurs with House (Not Included).

Sec. 374.  MDOT Employee Newsletters – Retains

Requires Department to distribute employee newsletters electronically.

Sec. 375.  MDOT Open Houses and Groundbreaking Ceremonies – Retains

Prohibits Department from reimbursing contractors or consultants for groundbreaking ceremonies, receptions, open houses, or press conferences related to transportation projects funded from appropriations made in Act.

Sec. 376.  Deferred Project Report – Retains

Requires report by March 1 of each year on status of 17 projects deferred in 2003, then restored to five-year plan.

Conferenceconcurs with Senate and retains.

Sec. 383.  Report on Use of State Airfleet – Retains

Requires quarterly report on use of department-owned aircraft; restricts transport of local government employees, employees of institutions of higher education, and legislative employees; waives restrictions for law enforcement and homeland security.

Sec. 384.  Detroit River International Crossing (DRIC)  -- Modifies

Conference Report language as follows:

Section 384 (1) The department may continue with preliminary legal, financial, traffic and revenue study, permitting, engineering, and other ancillary work for the Detroit River International Crossing (DRIC) so that it can solicit from the private sector, requests for proposals for public-private partnerships to construct the bridge, plaza, and related infrastructure. The department shall submit proposals to the legislature by May 1, 2010. Those activities associated with the DRIC project shall not bind the state in any way to construction.

(2) The department shall submit an investment grade traffic study to the legislature by May 1, 2010 from a reputable traffic company with appropriate experience intended to provide a detailed traffic projection for the ensuing 10 years, taking into account projected infrastructure modifications, expansions and improvements announced.

(3) The department shall not expend more than $2.5 million from state transportation revenue sources for activities enumerated in this section.

(4) It is the intent of the legislature to fully adopt or reject authorizing legislation by the full legislative bodies by June 1, 2010 to:

·                     Construct a new international crossing jointly and in agreement with Canada

·                     Create an authorized tolling authority; and

·                     Create a public private partnership.

Sec. 393.  Best Practices for Public Transportation  – Retains

Directs department to support best practices.

Conference concurs withHouse and includes.

Sec. 394.  Revisit Act 51 Distribution Formula -- Modifies

Indicates legislative intent that department study distribution formula.

Conference adopts new language; updates report date toJuly 1, 2010.

Sec. 395.  County Road C-56 Jurisdiction – Retains

Indicates legislative intent that department assume jurisdiction of County Road C-56 between US-31 and I-75 inCharlevoixCounty.

Conferenceconcurs with Senate and retains.

Sec. 397.  Ann Arbor/Detroit Commuter Rail Stations – Not Included

Indicates legislative intent that department work with SEMCOG in locating future train stations along corridor.

Sec. 398.  Street Railway Appropriation–NEW

Provides for the appropriation of $0 to a street railway pursuant to section 10e(22) of 1951 PA 51.

Conferenceadopts Executive language.

Sec. 399.  VMT Study – New In Senate Bill

Directs department to conduct a statewide study of vehicle miles traveled, including a comparison of vehicle miles traveled to lane miles for sampled geographical areas; comparisons to other states; evaluation of best practices.

Conference includes in a modified Section 394, above.

Sec. 399.  Complete Streets –NEW

Directs the department and local road agencies to adopt complete streets policies; directs the department to provide assistance to local agencies.  New in House bill.

Conference modifies language from House bill.

Sec. 401.  Federal Aid Distribution Report  – Retains

Requires Department to notify local agencies, Legislature, and state budget director on proposed distribution of federal funds between state and local units.

Sec. 402.  Sale of Local Federal Aid – Retains

Authorizes local road agencies to sell federal aid to Department or to other local road agencies.

Sec. 501.  Motor Carrier Act – Modifies

Describes distribution of revenue received under the act (1933 PA 254).

Conference concurs with House and changes reference from MDLEG to MDELEG.

Sec. 502.  Treasury Audits of Local Road Agencies – Retains

Provides for audits of local road agencies by Department of Treasury.

Sec. 503.  TEDF/Local Bridge Fund Carryforward – Retains

Provides carryforward authority for TEDF andLocalBridge funds; prevents diversion for other purposes; authorizes use of federal, local, or private funds for program.

Sec. 504.  MTF Distribution – Retains

Requires use of MTF in accordance with Act 51 requirements.

Sec. 601.  Road Construction Warranties – Retains

Encourages use of road construction warranties; provides for report by September 30 of each year.

Sec. 602.  Manufactured Pipe – Retains

Provides standards for use and testing of manufactured pipe.

Sec. 603.  Traffic Congestion – Retains

Directs Department to consider traffic congestion be used as criteria in project selection; provides specific criteria for evaluating traffic congestion.

Sec. 607.  I-75 Interchange Flint Township – Retains

Indicates legislative intent that Department construct new interchange.

Sec. 608.  Truck Inspection Stations – Retains

Earmarks $40,000 from the TEDF (Forest Roads) for two truck inspection stations.

Conferenceconcurs withHouse; retains current year language.

Sec. 610.  Dead Deer– Retains

Describes legislative intent regarding clean-up of dead deer and other large animal remains.

Sec. 612.  Incentive/Disincentive – Retains

Requires Department to establish guidelines for use of incentive/disincentive contracts; establishes a reporting requirement; report due January 1st of each year.

Sec. 615.  Interchange M-48 and I75 in Chippewa County– Retains

Indicates legislative intent that Department construct full interchange. [Updates report date toSeptember 30, 2010.]

Sec. 654.  Long-term Viability ofMackinacBridge– Retains

Indicates legislative intent that the Mackinac Bridge Authority protect long-term viability of theMackinacBridge.

Sec. 655.  Eaton Rapids Sidewalk Program – Retains

Indicates legislative intent that Department spend not less than $32,000 for sidewalk improvement project.

Conferenceconcurs with Senate and retains.

Sec. 656.  M-49 Upgrade “Green Highway” – Retains

Indicates legislative intent that the Department upgrade M-49 inHillsdaleCounty to a “designated” truck route.

Conferenceconcurs with Senate and retains.

Sec. 658.  Interchange at I-196 and Phoenix Road in South Haven – Retains

Indicates legislative intent that Department reconstruct  interchange.

Conferenceconcurs withSenate and retains.

Sec. 659.  Life Cycle Cost for Pavement Projects– Retains

Allows the use of historical/comparable data from states with similar climate, soil, and vehicular traffic.

Conferenceconcurs withSenate and includes.

Sec. 660.  Use of Alternative Materials– Retains

Encourages the department to examine the use of alternative road surface materials.

Conferenceconcurs withSenate and includes.

Sec. 661.  Completion of US-127 St. Johns to Ithaca – Retains

Indicates legislative intent that Department complete engineering and right of way acquisition.

Conferenceconcurs withSenate and includes.

Sec. 701.  Intercity Bus Equipment Fund – Retains

Provides for separate accounting and carryforward authority for this fund.

Sec. 702.  Rail Preservation Fund – Retains

Provides for separate accounting and carryforward authority for this fund; reference to State Transportation Preservation Act of 1976 (1976 PA 295).

Sec. 703.  Rail Abandonment Notice

Requires Department to notify Legislature when railroad companies file for abandonment of lines.

Sec. 705.  Rail Infrastructure Loan Program – Retains

References program guidelines in Public Act 295 of 1976.

Sec. 706.  Detroit/Wayne County Port Authority – Retains

Requires report due by February 15 of each year.

Sec. 708.  Intercity Bus Equipment Program – Retains

Requires annual lease of not less than $1,000.

Sec. 709.  Intercity Bus Essential Corridor – Retains

Identifies essential bus corridors; prohibits operating subsidy to any entity competing with another public or private carrier over the same route.

Sec. 711.  Seven-Day Rail Passenger Service (AMTRAK)

Directs Department to negotiate with a rail carrier to provide seven-day Port Huron/Chicago and Grand Rapids/Chicago service; limits state subsidy to $7.1 million; requires a monitoring system for complaints.

Senate – reduces subsidy limitation to $3.667 million,House does not include subsection (2) limitation.

Conference concurs withHouse and does not include subsection (2) limitation.

Sec. 714.  Local Transit Demand-Response Services  – Retains

Requires that Department, in cooperation with local transit agencies, work to ensure that demand-response services are provided throughoutMichigan; requires report dueMarch 1, 2008.

Conferenceretains current year language.

Sec. 721.  Guidelines for CTF Matching Federal Transit Funds – Retains

Reduces CTF matching funds for projects not put under contract within specified term.

Conferenceretains current year language

Sec. 722.  Transportation to Work Match for Federal Funds – Retains

Requires CTF funds in Transportation to Work line be used to match federal job access/reverse commute grants.

Sec. 729.  Intercity Bus Marketing – Retains

 Earmarks $100,000 from Intercity Services line item for marketing.

Conferenceconcurs with Senate and retains.

Sec. 730.  Intercity Bus Equipment Sales – Not Included

Directs Department to sell state-owned intercity bus equipment within six months of lease termination and to credit proceeds to Intercity Bus Equipment Loan Fund.

Conferenceconcurs with House and does not include.

Sec. 731.  Intercity Bus Space Rental  – Retains

Directs Department to charge transit agencies and intercity bus carriers the same rent when leasing similar space in state-owned intermodal facilities.

Conferenceconcurs with Senate and retains.

Sec. 734.  Transit Agency Service Performance Measures – Retains

Directs Department to work to ensure that transit agencies meet certain service performance measures.

Sec. 736.  Intercity Bus/Rail Coordination – Not Included

Directs Department to work with intercity bus and rail passenger carriers to coordinate services.

Conferenceconcurs with House and does not include.

Sec. 737.  Birmingham/Troy Passenger Facility  -- Retains

Legislative intent that Department proceed with construction of a Birmingham/Troy intermodal passenger facility.

Conferenceconcurs with Senate and retains.

Sec. 740.  Review of CTF Fund Balances  – Retains

Requires report on unencumbered CTF balance by March 1 of each year.

Sec. 741. Ann Arbor and Northwest Michigan Railroad  -- Modifies

Requires report on progress made to improve rail track to support passenger trains at 59MPH.

Conference adopts new reporting date ofMarch 1, 2010.

Sec. 743.  Use HEV Vehicles  -- NEW

Encourages the department to include hybrid electric vehicles in RFPs purchased through the department.

Conferenceconcurs with Senate and includes.

Sec. 743.  Mobility Manager -- NEW

Encourages local transit agencies to hire mobility manager to coordinate transportation services.

Conferenceconcurs with Senate and includes.

Sec. 801.  State Aeronautics Fund  -- Modifies

Requires that unexpended funds in the State Aeronautics Fund lapse back to the fund.

Conference concurs with House and adopts Executive language "Except as provided for in Section 903 for Capital Outlay…."

Sec. 901.  Aeronautics Capital Program  – Modifies

Permits department to contract for airport improvement projects on behalf of local airport owners; local match requirements.

Conferenceretains current year language; also adopt new subsection (3) requiring local agencies to obtain authorization before submitting projects to federal agencies.

Sec. 902.  Aeronautics Capital Program – Status Report   – Retains

Provides reporting requirement.

Conferenceconcurs with Senate and includes reporting requirement.

Sec. 903.  Capital Outlay Carry Forward  – Retains

Provides of carry forward authority in accordance with the Management and Budget Act.

Sec. 904.  Capital Outlay Authorization/Lapse – Modifies

Conferenceadopts Executive proposed language on allocation of lump-sum appropriations.