FY 2008-09 SUPPLEMENTAL APPROPRIATIONS

Summary as Enacted

House Bill 4582 Enacted as 2009 PA 9

HFA Director: Mitchell E. Bean

Supplemental Coordinator: Kyle I. Jen

Transportation Analyst:  William E. Hamilton

Executive*

House/Senate/Enacted

Budget Area

Gross

GF/GP

Gross

GF/GP

Transportation

$873,005,000

$0

$873,005,000

$0

TOTAL

$873,005,000

$0

$873,005,000

$0

*Reflects requests from letter ofMarch 3, 2009

OVERVIEW

The supplemental appropriation provides spending authority needed for federal transportation funds apportioned toMichigan under the "American Recovery and Reinvestment Act of 2009," (ARRA).  The bill recognizes only the ARRA transportation funds apportioned to the state through federal formula grants.  The State Budget Office has indicated it will submit a separate request for ARRA transportation discretionary grant programs onceMichigan's grant awards are known.  ARRA transportation funds may be used for 100% of project cost; there is no state or local match requirement.  

The House bill, passed onMarch 18, 2009, reflected the Executive request.  The Senate passed the bill without changes onMarch 26, 2009.  The Governor signed the bill into law onMarch 31, 2009.

FY 2008-09 Appropriation Items:

Executive

House/Senate/Enacted

TRANSPORTATION

1.   State Trunkline Federal Aid and Road and Bridge Construction (ARRA)

OnMarch 2, 2009, the Federal Highway Administration (FHWA) announced the apportionment of highway infrastructure funds to the states under provisions of the ARRA.  The amount apportioned toMichigan was $847.2 million.  The requested appropriation represents the state trunkline share of these federal highway funds as provided under Section 10o of 1951 PA 51.

 
Gross

Federal

 

$635,403,700

635,403,700

$635,403,700

635,403,700

2.   LocalFederal Aid and Road and Bridge Construction (ARRA)

Section 10o of 1951 PA 51 directs that an average of 25% of federal-aid highway funds available toMichigan be allocated to programs administered by local jurisdictions.  The requested appropriation represents the 25% allocation to local jurisdictions of the $847.2 million in highway funds apportioned toMichigan under the ARRA.

Gross

Federal

$211,801,300

211,801,300

$211,801,300

211,801,300

3.     Nonurban Operating/Capital (ARRA)

Appropriation represents additional federal transit funds available toMichigan public transit agencies in non-urbanized areas (census population less than 50,000) under the ARRA.  These formula funds are distributed in accordance with Section 5311 of the Federal Transit Act.  The line item name, Nonurban Operating/Capital, is consistent with current year budget descriptions. However, under provisions of the ARRA, the funds can only be used for capital acquisitions, such as bus replacement, not for operating expenses.

[An additional $109.0 million in Urban formula grants (Section 5307 of the Federal Transit Act) is available toMichigan urban transit agencies under the ARRA.  Since Section 5307 funds are granted directly to urban transit agencies, state appropriation is not required.]

Gross

Federal

$21,930,000

21,930,000

$21,930,000

21,930,000

4.   Intercity Services (ARRA)

Section 5311 of the Federal Transit Act requires that 15% of rural formula funds be used to support rural intercity bus service.  The requested appropriation represents the 15% share of rural formula transit funds available under the ARRA.  Under ARRA, the funds can only be used for capital acquisitions, such as bus replacement, not for operating.

 

Gross

Federal

$3,870,000

3,870,000

$3,870,000

3,870,000

FY 2008-09 Boilerplate Items:

Executive

House/Senate/Enacted

TRANSPORTATION

1.   Boilerplate Appropriation of Additional Funds

Appropriates additional apportioned funds which may be made available toMichigan through redistribution of funds not obligated by other states; requires report to Legislature.

 

Included

 

Sec. 301

2.   Carry-Forward Authority

Provides for the carry-forward of unexpended funds into the succeeding fiscal year in conformance with Section 451a of the Management and Budget Act (work projects).

Included  

Sec. 302

3.   Federal Requirements Incorporated by Reference

Requires that local units of government and other subrecipients of appropriated funds comply with all requirements of the ARRA.

Included

Sec. 303