New Michigan law cuts local road funding red tape

A new rule in Michigan is intended to maximize federal funding for local roads throughout the state.

Gov. Gretchen Whitmer has signed into law a two-bill package to help reduce road funding red tape associated with the use of federal funding.

The lead bill, SB465, allows local road agencies to participate in a federal aid swap with the state to reduce overall repair costs.

According to the Michigan Department of Transportation, local road agencies see an estimated 20-30% cost increase by meeting federal standards, such as bidding and reporting. However, the state DOT estimates it will spend 10-15% more to comply with federal requirements.

The disparity is attributed to state operations that are more suited to handle the administrative federal requirements than smaller municipalities.

Sen. Jim Runestad, R-White Lake, said that giving local transportation agencies more flexibility to cut costs the state can help them fix more local roads.

“Just imagine how many more miles of local roads could be fixed throughout our state with that amount of savings. It’s a game-changer,” Runestad said in a news release.

He added that the state has much more experience dealing with the federal rules and can more easily meet the requirements at minimal costs.

The second bill, SB466, authorizes the use of state funds to replace the federal dollars directed to MDOT under SB465.

According to the Michigan County Road Association, Michigan joins 15 other states to use the buyout strategy. LL

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