2004-05 TRANSPORTATION BUDGET H.B. 5528 (P.A. 361 of 2004): ENACTED WITH VETOES







*Vetoed by the Governor

FY 2003-04 Year-to-Date Gross Appropriation	$3,219,150,500
Changes from FY 2003-04 Year-to-Date:
1. Budget Structure. The Senate budget broke out each administrative line item into three cost components, salaries and fringes, travel, and other.	0
2. Administrative Savings. The Senate reduced funding for the Communications Division (3 FTE and $232,400) and the Performance Excellence Division (12 FTE and $1.2 million), transferring the savings to the State Road and Bridge Program ($1.4 million).	0
3. CTF Reductions. The Senate included reductions to various CTF-funded programs to recognize the shift of $10 million from the CTF to the General Fund under SB 1103.	(8,924,000)
4. Debt Service. Increase for scheduled debt service payments.	35,687,800
5. Grants to Other Departments. Transportation services provided by other departments.	1,604,300
6. Highway Maintenance. Increase for related highway maintenance costs.	4,816,900
7. Federal Highway Funding. Federal funding for State and local road and bridge projects.	52,014,300
8. Local Bridge Funding. Shift funding ($25.6 million) from State bridges to local bridges associated with proposal to split one cent of the gasoline tax revenue. Senate provided one-fourth of the revenue from the one cent ($12.8 million) to local bridges and retains three-fourths of the revenue for State.	0
9. Bureau of Multi-Modal Transportation Services. Increase to support on-going operations of public transportation and freight service program administrative costs.	1,300,000
10. Federal Transit Funding. Net increase in Federal transit funding for various programs.	6,600,000
11. State Road and Bridge Funding. Decrease in State-restricted revenue for State and local road agencies for highway and bridge projects, primarily the result of the elimination of one-time trailer registration fee revenue deposited in the Michigan Transportation Fund.	(50,199,100)
12. Design Services. The Governor recommended 721.7 FTEs and $35.6 million for design and engineering services. The House reduced the appropriation to 595.7 FTEs and to $100, and designated the remainder for contractual design and engineering services provided by private contractors. The Senate concured with the Governor.	0
13. Specific Transportation Projects. The Senate included various projects in boilerplate * The Governor vetoed the related boilerplate sections (617, 621, 622, 623, 624, 625, 626, 633, 634, 728).	(5,585,500)
14. Employee Savings. Savings of 5% of salary and wages are applied to the budget.	(8,979,300)
15. Economic Adjustments. Economic adjustments included for FY 2004 and FY 2005.	34,923,400
16. Other Changes.	(3,351,100)
Total Changes	$59,907,600
FY 2004-05 Enacted Gross Appropriation	$3,279,058,100

FY 2004-05 TRANSPORTATION BUDGET BOILERPLATE HIGHLIGHTS

Changes from FY 2003-04 Year to Date:

1. Standard Sections. The Senate budget contains the following standard sections: state spending (201), Management and Budget Act (202), definitions (203), civil service billing (204), hiring freeze (205), privatization (207), Internet reporting (208), foreign goods (209), information technology user fees (259), out-of-state travel (260).

2. Contingency Funds. The House budget included Federal, State-restricted, private, and local contingency fund language. The Senate removed this language (Sec. 206).

3. Five Year Program. The Senate included language that requires legislative approval of the Program (Sec. 307). * The Governor declared this section unenforceable.

4. Minority and Women Businesses. The House included new language regarding minority and women business enterprises. The Senate concurred (Sec. 334).

5. US-131 Project Study. The House included new language regarding selection of a specific alternative. The Senate retained this section (Sec. 365) .* The Governor declared this section unenforceable.

6. Charter Prohibition. The Senate included language that creates a complaint process associated with the charter prohibition applying to local transit agencies (Sec. 370).

7. Departmental Restrictions. The Senate includes new language sections that prohibit the Department from: printing employee newsletters (Sec. 374), reimbursing contractors for groundbreaking ceremonies (Sec. 375), spending funds for food at in-house training (Sec. 378), spending CTF funds on operational planning activities of public transit agencies (Sec. 379), spending funds for television programming, unless it addresses traffic or safety advisories (Sec. 381).

8. Reports. The Senate included new language sections requiring reports on the following: 17 previously-deferred projects (Sec. 376), travel on State-owned aircraft (Sec. 383),

9. Specific Transportation Projects. The Senate included language for specific road projects: M-48 and I-75 interchange in Chippewa County (Sec. 617), traffic light at US-31 and Bay Harbor in Emmet County (Sec. 621), M-37 improvements in Caledonia Twp, Kent County (Sec. 622), Tienken Road in Oakland County (623), M-25 bridge in Hume Twp. (Sec. 624), I-75 exit in Ogemaw County (Sec. 625), Cheboygan River bridge (Sec. 626), M-99 traffic light in Eaton County (Sec. 633), traffic lights in Wayne County (Sec. 634), and Lake State Rail Company (Sec. 728). * The Governor vetoed these sections.

10. Mackinac Bridge Authority. The Senate included language that prohibits the Department from using funds for the transfer of investment authority from the Mackinac Bridge Authority to the Department and Department of Treasury (Sec. 628). * The Governor declared this section unenforceable.

11. Intercity Bus Equipment Fund. The Senate included language that transfers $200,000 from the Intercity Bus Equipment Fund to the Comprehensive Transportation Fund for FY 2004-05 only (Sec. 701).

12. Amtrak Subsidy. The Senate included language that removes the $100,000 earmark for marketing efforts (Sec. 711).

13. RTCC Funding. The Senate removed language that restricts the amount of funding that the Regional Transit Coordinating Council (DDOT and SMART) can receive from the local bus operating line item to the amount it received in FY 2002-03 (Sec. 727).

14. Wheelchair Lifts. The Senate included language that requires local transit agencies to report on inoperable wheelchair lifts on public transit buses, correct non-functioning lifts, and withholds funding from those agencies that fail to correct failing lifts (Sec. 732).

Date Completed: 10-05-04 Fiscal Analyst: Craig Thiel Bill Analysis @ http://www.senate.michigan.gov/sfa October 13, 2004 This analysis was prepared by nonpartisan Senate staff for use by the Senate in its deliberations. hitrn_en.doc