FY 2005-06 TRANSPORTATION BUDGET S.B. 281 (S-2): SENATE-PASSED






Senate Bill 281 (S-2 as passed by the Senate)
Committee: Appropriations

FY 2004-05 Year-to-Date Gross Appropriation $3,274,189,100
Changes from FY 2004-05 Year-to-Date:
  1. Debt Service. Scheduled payments for current and planned borrowing. Does not include Governor's "Jobs Today" borrowing proposal. 72,993,400
2. Grants to Other Departments. The Governor increases transportation grants to other departments to reflect actual costs ($1,457,200). The Senate does not include any increases and redirects the STF ($794,500) to State road & bridge construction. (21,800)
3. State Planning and Research. Available carryforward funds for planning activities. 6,000,000
4. Michigan Intelligent Transportation System Center. State operational costs. 8,485,500
5. Highway Maintenance. The Governor increased highway maintenance costs and included risk assessment and tree removal costs for emerald ash borer tree damage. The Senate redirects the emerald ash borer funding ($1,000,000) to the State road & bridge construction and redirects $217,900 of State maintenance funding increase to the contract maintenance line to reflect current-year percentages. 3,315,000
6. Federal Highway Funding. Increase for State and local road and bridge projects. 10,740,900
7. State Funding to Local Road Agencies. Increase State funding to local road agencies. 17,072,500
8. State Road and Bridge Funding. The Governor proposed a reduction of $15,053,900 from current-year levels. The Senate redirects STF reductions to State road & bridge construction, see items #2, 5, and 12. The Senate includes proposed billboard permit fees ($900,000). (11,777,600)
9. Local Bridge Funding. Second year of two-year phase-in of "split penny" legislation (P.A. 384 of 2004) to provide one-half of the revenue from one cent of gasoline tax to local bridges. Shifts $12.7 million from State bridge program to local bridges. 0
10. Planning Grants. The Senate eliminates funding. (80,000)
11. Bus Capital Funds. The Governor recommended a $10.8 million increase. The Senate increases by $3.5 million. 3,498,200
12. Other Reductions. The Senate reduces State support for the Enhancement Program and Engineering Services. This funding is included in the State road & bridge construction line. (581,800)
13. Economic Development Fund: Target Industries. The Governor increased funding for category "A" projects. Senate rejects the increase and keeps the current funding level. 0
14. Amtrak Subsidy. The Senate reduces the subsidy from $7.1 million to $6.1 million. (1,000,000)
15. Economic Adjustments. Includes standard economic adjustments. 18,620,200
16. Budget Structure. The Governor's budget is presented in a traditional program format. The Senate's budget reflects the current-year cost center format.
17. Other Changes.   5,443,700
18. Comparison to Governor's Recommendation. The Senate is $10.8 million under the Governor.
Total Changes $132,708,200
  FY 2005-06 Senate Gross Appropriation $3,406,897,300
FY 2005-06 TRANSPORTATION BUDGET BOILERPLATE HIGHLIGHTS

Changes from FY 2004-05 Year to Date:
  1. Deleted Sections. The budget deletes the following current-year sections: report retention (211), log truck safety study (363), US-131 in St. Joe County project (365), prohibition on the purchase of food and beverage during departmental meetings (378), Federal funding distribution to locals (402) (note: this language is contained in P.A. 51), forest roads grant (608), M-25 in Port Huron closure (629), high speed rail report (704), CTF fund balance estimate (715), CTF match for transportation to work program (722).
2. Contingency Funds. The Governor's budget includes Federal, State-restricted, private and local contingency fund language. (Sec. 206). The Senate does not include this authorization.
3. Employee Disciplinary Action. The Senate includes language prohibiting the Department from taking disciplinary action against an employee for communicating with the Legislature. (Sec. 261)
4. Five Year Transportation Program. The Governor's budget removes legislative approval of the Five Year Transportation Program. The Senate concurs. (Sec. 307)
5. Construction Zone/Give 'Em Brake. The Governor's budget modifies current-year language to allow "up to" $500,000 for these activities as opposed to requiring $500,000. The Senate retains current-year language to provide $500,000 for these activities. (Sec. 324)
6. Charter Prohibition. The Senate modifies current language to provide penalties to transit agencies that violate the charter prohibition in P.A. 51. (Sec. 370)
7. Travel on State-Owned Aircraft. The Senate modifies current language to remove the reporting exemptions for the Governor, Attorney General and Secretary of State. Also, the new language prohibits travel by university employees, Legislators and staff, and local government employees on State-owned aircraft. (Sec. 383)
8. MITS Report. The Senate includes a report on Michigan Intelligent Transportation Systems (MITS). (Sec. 384)
9. Federal Funding Notification and Distribution. The Governor's budget modifies current-year language to remove the legislative review of proposed Federal funding distributions. The Senate includes new language, providing the Legislature with approval authorization for distribution of Federal funding to locals. (Sec. 401)
10. Specific Transportation Projects. The Senate includes language for the following projects: I-75 and M-48 interchange in Chippewa County (617), Bay Harbor traffic light in Emmet County (621), M-25 bridge in Hume Twp. (624), I-75 interchange in Ogemaw County (625), I-69 interchange in Lapeer County (636), Boardman River bridge in Traverse City (637), Latson Rd interchange in Livingston County (638), US 127 interchange in Isabella County (641), Ann Arbor Road and King Road in Wayne County (642), Wixom Road in Oakland County (643).
11. Lights on Construction Barrels. The Senate includes language to require the Department to continue to use lights on construction barrels and to allow contractors to withhold payment from subcontractors. (Sec. 635)
12. Signs on State Highways. The Senate requires the Department to develop a plan and a schedule to post signs regarding driving on the right side of the roadway (Sec. 639) and yielding to emergency vehicles. (Sec. 640)
13. Public Transit Agency Budgets. The Senate includes language to require the mid-year submission of transit agency budgets and requires the Department to distribute grants based on these revised figures. (Sec. 707)
14. Duplication of Routes. The Senate includes language prohibiting local transit agencies from establishing new routes that duplicate existing routes served by intercity carriers. (Sec. 710)
15. Local Transit Agency Performance Measures. The Senate modifies current language to require the Department to ensure that specific performance measures are met by local public transit agencies. (Sec. 734)
16. Audits of Public Transit Agency Contracts. The Senate includes language to require the Department to audit all outstanding contract payments with public transit agencies. (Sec. 735)
17. Rail/Bus Coordination. The Senate includes language to require the Department to work with intercity rail and bus carriers to coordinate service. (Sec. 736)
18. Tie Bar. The bill is tie-barred to S.B. 572 that would increase billboard permit fees.
Date Completed: 6-20-05 Fiscal Analyst: Craig Thiel Bill Analysis @ http://www.senate.michigan.gov/sfa June 20, 2005 This analysis was prepared by nonpartisan Senate staff for use by the Senate in its deliberations. HItrn_sp