FY 2017-18 TRANSP. SUPPLEMENTAL H.B. 4321 (H-1):
SUMMARY OF HOUSE-PASSED BILL
IN COMMITTEE
House Bill 4321 (Substitute H-1)
Sponsor: Representative Laura Cox
CONTENT
The bill proposes to appropriate $175.0 million of General Fund/General Purpose (GF/GP) revenue for State and local roads for the 2017-18 fiscal year. The money would be divided into three parts, as one-time appropriations: $38,150,000 (21.8%) for Cities and Villages, $68,425,000 (39.1%) for County Road Commissions, and $68,425,000 (39.1%) for State Trunkline preservation and next generation technologies and service delivery. This division of supplemental money matches the percentage division of Michigan Transportation Fund money among the State and local units of government pursuant to Section 10 of Public Act 51 of 1951.
The first column in Table 1 below shows the total appropriation for transportation in the current year, as well as the individual amounts of that total set aside for counties, cities and villages, and the State Trunkline. The second column shows the increase of each as a result of the supplemental, and the third column shows the percentage increase as a result of the supplemental.
Table 1
FY 2017-18 Supplemental Appropriations
|
|
FY 2017-18 Year-to-Date |
FY 2017-18 Supplemental Increase |
Percentage Increase |
|
County Road Commissions |
$880,938,200 |
$68,425,000 |
8.0% |
|
Cities and Villages |
491,162,500 |
38,150,000 |
8.0 |
|
State Trunkline Road & Bridge + Federal Aid |
1,140,756,800 |
68,425,000 |
6.0 |
|
Total Transportation Budget |
$4,349,443,000 |
$175,000,000 |
4.0% |
FISCAL IMPACT
The bill would increase the Department of Transportation's road and bridge funding line item by $68,425,000 for the current fiscal year and would increase distributions to local units of government for local roads and bridges by $106,575,000, also for the current fiscal year.
The $175.0 million would match the additional GF/GP contribution to roads found in the Governor's proposed budget for FY 2018-19. Assuming that the supplemental and proposed budget are both targeting the same pool of money, enactment of the supplemental for the current year could remove the $175.0 million from the final appropriation for the following fiscal year.
The first column of numbers in Appendices A and B shows Senate Fiscal Agency's estimated amounts that each city or county will receive of current-year appropriations. The second column, provided by the Department of Transportation's Budget Reports and Financial Outreach Unit, shows the additional money each city or county would receive as a result of the supplemental. The final column shows the percentage increase in funding from the appropriated amounts as a result of the proposed increase for the current fiscal year.
FY 2017-18 BOILERPLATE LANGUAGE SECTIONS
Sec. 201. General: Records the amount of total State spending and payments to local units of government.
Sec. 202. General: Subjects the appropriations and expenditures in the bill to the provisions of the Management and Budget Act.
Sec. 301. State Transportation Department: Limits the use of the money for cities and villages to the construction and preservation of streets.
Sec. 302. State Transportation Department: Limits the use of the money for counties to the construction and preservation of roads.
Sec. 303. State Transportation Department: Restricts the use of the money for the Department so that not more than $15.0 million would be available for projects related to next generation technologies, hydrogen fueling stations, and service delivery, including projects to provide enhanced services for seniors and people with disabilities. The section requires a report on the use of funds for next generation technologies on or before March 1, 2019. The section also prohibits the use of the State's share for the purchase, construction, operation, or maintenance of a communications network to provide services to residential or commercial premises. The prohibition does not apply to expenditures for a transportation purpose, connected vehicle communication technologies, or other transportation-related activities.
Fiscal Analyst: Michael Siracuse
This analysis was prepared by nonpartisan Senate staff for use by the Senate in its deliberations and does not constitute an official statement of legislative intent.