FY 2011-12 TRANSPORTATION BUDGET S.B. 185 (CR-1): CONFERENCE REPORT


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Amount Over/(Under) GF/GP Target: $ 0
FY 2010-11 Year-to-Date Gross Appropriation $3,235,819,300
Changes from FY 2010-11 Year-to-Date:
  Items Included by the Senate and House
1. Debt Service. Governor, Senate, & House increased funding for scheduled debt service payments. 40,660,400
2. Interdepartmental Grants (IDGs). The Governor, Senate, and House adjusted funding for grants to other departments to adjust for variations in revenue. 1,388,400
3. State Restricted Revenue. The Governor, Senate, and House increased expenditures for road and bridge programs to align them with anticipated revenue. The increases were: State Trunkline Roads - $96,083,800; County Road Commissions - $19,245,700; Cities and Villages - $10,730,400; and Local Bridge Program - $452,700. 126,512,600
4. State Trunkline Reduction. The Senate and House removed the $50.0 million in anticipated revenue assumed by the Governor to have come from reimbursements from Canada associated with the New International Trade Crossing. (50,000,000)
5. Capital Outlay and Related. The Governor, Senate, and House reduced payments for Airport Safety, Protection, and Improvement programs by $13.5 million. Funding of $9.9 million was removed that was to be used for facilities associated with the Blue Water Bridge expansion. (23,385,400)
6. Federal Match Funding. The Governor, Senate, and House reduced State Trunkline Funding in several line items to increase the amount available for Federal match requirements. (20,222,000)
7. Other Revenue-based Adjustments. The Governor, Senate, and House reduced expenditures from various funds to reflect anticipated revenue, including $2.0 million in decreases in several line items due to lower than anticipated State Aeronautics Fund revenues and a decrease of $1.2 million in restricted funds for intercity bus services. (3,164,200)
8. Economic Adjustments. The Governor, Senate, and House included $14.2 million Gross and no GF/GP increase for economics. 14,207,200
9. Other Changes. The Governor, Senate, and House recommended miscellaneous adjustments in several line items to reflect changes in restricted and federal revenue estimates. The largest items included the transfer of $2.6 million and 27.0 FTEs from DNR/DEQ for accounting services, a reduction of $2.9 million in the State Trunkline Fund to increase amount available for Federal match, and the removal of $1.0 million for one-time funding for the Light Rail project in Detroit. 5,954,400
Conference Agreement on Items of Difference
10. Road and Bridge Funding Increases. The House shifted $20.0 million in CTF funding from the Local Bus Operating and Bus Capital line item - $10.0 million each to the Road and Bridge and the County Road Commissions line items. The Conference did not include. 0
11. Comprehensive Transportation Fund (CTF) Reduction. The Senate reduced the Bus Capital line item by $15.0 million. If anticipated statutory changes are made, the reduction will allow these funds to flow to the General Fund. The House did not include this change and instead shifted a total of $20.0 million to Road and Bridge projects. The Conference did not include. 0
12. FY 1022-12 One-Time Appropriations. The Conference Report included GF/GP funding of $500,000 for the maintenance and repair of two swing bridges.
Total Changes $91,951,400
  FY 2011-12 Conference Report Gross Appropriation $3,327,770,700
FY 2011-12 TRANSPORTATION BUDGET BOILERPLATE HIGHLIGHTS

Changes from FY 2010-11 Year to Date:
  Items Included by the Senate and House
1. Definitions. The Governor deleted a number of definitions that are no longer used in the bill. The Senate retained this Section. The House retained the section, but eliminated "AASHTO" and "ASTM" from the definitions. The Conference Report concurred with the Governor and Senate. (Sec. 203).
2. Confidential Bid Information. Provide conditions for certain proprietary information to be kept confidential. Senate and House retained current language. (Sec. 304)
3. Unspent Trunkline Funds. Specifies unencumbered and unexpended funds are carried forward and appropriated. Senate and House retained current language. (Sec. 312)
Conference Agreement on Items of Difference
4. Deleted Sections. RETAINED the following sections that were eliminated by either the Senate or House: 202, 204, 207, 263, 303, 305, 306(2), 307, 309, 310, 319, 357, 383, 393, 398, 401, 601, 602, 603, 610, 612, 664, 703, 708, 711, 714, 731, 734, and 740. The Conference Report DELETED the following sections that were eliminated by either the Senate or the House: 205, 210, 314, 321, 322, 374, 376, 394, 395, 399, 502, 604, 607, 608, 615, 654, 656, 658, 659, 661, 662, 665, 709, 741, 743, and 745.
5. IT Work Projects. House added new language stating that unspent IT funds may be carried forward and designated as work projects. Senate did not include this language. Conference concurred with House. (Sec. 211)
6. GF/GP Lapse Report. House added new language requiring a report by September 30, 2011, providing an estimate of GF/GP appropriation lapses. Conference Report concurred with House and changed date to November 15. (Sec. 228)
7. Restricted Fund Balances. The Conference Report added new language stating that within 14 days following the release of the executive budget recommendation, the department shall provide an annual report on estimated State restricted fund balances, projected revenues, and projected expenditures. (Sec. 229)
8. Remanufactured Parts. Senate added language requiring the Department to use remanufactured parts when possible for maintenance and repair of State owned vehicles excluding State Police vehicles. Conference concurred with Senate. (Sec. 270)
9. Public Hearing for Bridge Authorities. The Senate retained the requirement for public hearings while the House removed the hearing requirement. The Conference Report retains the hearing requirement. (Sec. 301)
10. Contract Compliance. The House added new language stating that a contractor's prequalification rating shall not be reduced or restricted until all administrative appeals have been completed. The Conference concurred with the House and added language allowing the department to take immediate action regarding prequalification ratings for public safety reasons or to prevent fraud and malfeasance of public funds. (Sec. 308)
11. Women- and Minority-Owned Businesses. The House re-wrote the section and replaced "women- and minority-owned businesses" with "disadvantaged business program" and limited contracts with such programs to 5% and a maximum of 5 years under that classification. Conference does not include this section.
12. Sale of Airplane. House added new language requiring the Department to sell one of two Twin Turbo Prop airplanes and the proceeds to be credited to the SAF. Conference adopted new language requiring the Department and State budget office to provide for an independent study of the State's need for a State aircraft fleet. (Sec 382)
13. State-Owned Aircraft Use. Imposes requirements, prohibitions, and a quarterly report regarding the use of aircraft. The Senate changed reporting requirement to annually. House eliminated this section. Conference concurred with the Senate. (Sec. 383)
14. Best Practices for Public Transportation. Directs the Department to promote best practices for public transportation. Subsection b requires coordination with the MEDC to promote transition of bus fleets to hybrid transit vehicles to promote fuel economy. The Senate retained current language. The House deleted this section. The Conference retained the section but removed subsection b. (Sec. 393)
15. Recycled Materials. Senate deleted this section. House added a new subsection 2 that requires the Dept. to evaluate the use of a bituminous mix that incorporates crumb rubber from scrap tires. Conference concurred with House. (Sec. 660)
16. DRIC. The Senate and House included language disallowing any expenditures on DRIC or a renamed successor unless the Legislature adopts enabling legislation allowing for construction of a new bridge. The Conference added language stipulating that funds cannot be spent for construction or construction planning. (Sec. 384)
17. One-Time Appropriation. The Conference Report added new language providing for one-time GF/GP funding of $500,000 for the maintenance of two swing bridges. (Sec. 1001)

Date Completed: 5-24-11 Fiscal Analyst: Joe Carrasco This analysis was prepared by nonpartisan Senate staff for use by the Senate in its deliberations. hitrn_cr.docx