Local road funding aid nears passage in Michigan

August 7, 2020

Keith Goble

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A Michigan bill package nearing passage at the statehouse would give local governments more tools to get needed road work done.

The Senate Transportation Committee has voted to advance a bill package to address local road funds. The package is touted to give local governments more flexibility to prioritize their road repair schedules.

Local roads get attention

The first bill, HB4965, would amend the state’s road funding formula to give counties more say on how state fuel tax and vehicle registration revenue is spent locally.

Michigan’s current road spending formula stipulates that 75% of funding be spent on primary roads. Local roads receive 25%.

Bill supporters say a blanket 75/25 rule on primary and local road repair allocation does not work for every community.

Rep. Rodney Wakeman, R-Saginaw Township, has said that the state needs to operate under a new funding formula that is “more practical for local road agencies.”

The bill also would provide local governments with more flexibility when deciding how to spend road repair money, and when determining which roads get repaired.

“Locals know their roads better than Lansing does,” Wakeman added.

The bill would not alter a requirement for local governments to submit their asset management plans to an oversight commission.

Another committee-approved bill, HB4966, covers the use of funds available for cities and villages. All state transportation funds distributed to a city or village would be required to be used for municipal streets.

The bills await consideration on the Senate floor. If approved, the package would move to the governor’s desk. House lawmakers have already approved the measures.

More legislation to benefit city and county transportation funding

Two bills halfway through the statehouse are touted to help maximize local road funding.

The first bill, SB518, would require all federal transportation funds received by the state to be spent by MDOT. An exception would be made for funds specifically allocated by the feds for local jurisdictions or funds allocated to local jurisdictions through a competitive process.

“With the state handling all federal transportation funds and reporting requirements, local agencies can then focus their resources more efficiently,” Sen. Jim Runestad, R-White Lake, said in previous remarks.

The companion bill, SB519, would use state funds to replace the federal dollars directed to MDOT through SB518. Funds would be directed from the state to counties, cities, and villages.

Runestad has said the two bills would give municipal and county transportation agencies improved flexibility to address pressing repaving and street and highway repairs.

The bills are in the House Transportation Committee.

More Land Line coverage of news from Michigan is available.