TRANSPORTATION

FY 2010-11 Appropriations

Public Act 192 of 2010 (House Bill 5889)

Analyst: William E. Hamilton

September 30, 2010

	FY 2009-10	FY 2010-11	FY 2010-11	FY 2010-11	FY 2010-11	*Difference: Enacted Difference* *From FY 2009-10 YTD*
	YTD (9/30/10)	Executive	House (6-9-10)	Senate (6-17-10)	Enacted	*Amount*	%
IDG/IDT	$0	$878,300	$878,300	$878,300	$878,300	$878,300	100%
Federal
ARRA	98,424,400					(98,424,400)	(100%)
Non ARRA	1,228,154,500	752,480,600	1,227,480,600	1,227,480,600	1,227,470,600	(683,900)	0.0
Local	56,453,400	56,496,000	56,496,000	56,496,000	56,496,000	42,600	0.0
Private	0	0	0	0	0
Restricted	1,978,578,800	1,951,074,400	1,949,604,500	1,959,290,800	1,950,974,400	(27,604,400)	(1.4)
GF/GP	0	0	84,000,000	0	0	0	0%
Gross	$3,361,611,100	$2,760,929,300	$3,318,459,400	$3,244,145,700	$3,235,819,300	($125,791,800)	*(3.7)*
FTEs	3,014.3	3,022.3	3,022.3	3,022.3	3,022.3	8.0	0.2

Notes: (1) "ARRA" represents funds received under federal American Recovery and Reinvestment Act. (2) FY 2009-10 YTD reflects transfers, Executive Orders, and supplement appropriation adjustments through September 30, 2010. (3) "Enacted" reflects actual spending authority after the Governor's vetoes, $150,100 less than the amounts printed in the enrolled bill.

Overview

The Transportation budget supports state and local highway programs, public transportation programs, aeronautics programs, and administration of the Michigan Department of Transportation (MDOT). Approximately two-thirds of the revenue in this budget comes from state restricted revenue, with approximately one-third from federal sources. There is no General Fund revenue appropriated in this budget. Almost all the state-restricted revenue in this budget is constitutionally-restricted – from motor fuel taxes and vehicle registration taxes. This revenue is first credited to the Michigan Transportation Fund (MTF) and then distributed in accordance with 1951 PA 51 to other state transportation funds and programs, including the State Trunkline Fund (STF) and the Comprehensive Transportation Fund (CTF), and to local road agencies.

Summary of Major Budget Issues

The Enacted Budget reflects $20 million in STF administrative savings that were part of the original Executive budget proposal for securing matching funds for federal aid. The Enacted budget also reflects a subsequent department proposalfor securing an additional $84 million in state funds needed to match all available federal-aid highway funds. Elements of the department proposal are: issuing $40 million in short term notes; use of $11 million in soft-match toll credits; redirection of $12 million in drivers license fees from the Transportation Economic Development Fund (TEDF); recognition of $2.1 million in STF savings from the Civil Service Commission's rejection of a proposed 3% pay increase for non-represented employees (NEREs); $6 million in other program reductions, including a $1 million reduction in Welcome Center operations; deferral of $11.3 million in capital outlay facility projects, including $1 million related to salt sheds at contract maintenance agencies; and the deferral of $1.6 million in capital funding for a proposed Welcome Center in Port Huron. These items represent internal fund shifts, or, in the cases of the proposed note issue and the use of toll credits, are "off-budget."

Acceptance of the department proposal allows the recognition in the budget of an additional $475 million in federal funds, as compared to the original Executive recommendation. Note that most of items that comprise the $84 million involve shifting funds within the budget and do not increase gross appropriations. Some, such as the $40 million note, the use of toll credits, and the lapse of prior year's capital outlay projects, do not require legislative approval and are not reflected in the budget bill at all.

Budget Changes From FY 2009-10 YTD Appropriations	FY 2009-10 YTD (as of9/30/10)	Enacted Change From YTD
*1. Debt Service* Recommends $246.8 million, reflecting anticipated debt service schedules. Budget includes $7.5 million in a new fund source "IRS rebate" to reflect rebates associated with a new Build America Bonds issued by the department in 2009. This new fund source is included the bill and our analysis with other state restricted revenue. While the appropriation includes $29.8 million related to CTF debt service, $13.2 million of that amount would not be used for debt service; it would instead be transferred to a bond proceeds account for subsequent expenditure on public transportation capital projects. The department was able to reduce CTF debt service for three years by restructuring CTF bonds in May 2009. The $13.2 million represents the second year of reduced CTF debt service. The transfer of this savings to a bond proceeds account is required byIRS regulations governing tax-free bonds, and would be authorized by boilerplate Section 745.	Gross Federal Restricted	$251,637,300 58,163,500 193,473,800	($4,824,300) (12,331,400) 7,507,100
*2. Support Services by Other State Departments* – PARTIAL VETO Authorization for interdepartmental grants (IDGs) for services provided by eight other state departments; includes $20 million MTF to the Department of State and $8.3 million MTF to the Department of Treasury for the costs of collecting transportation revenue. Increases from prior year include $721,500 in economic increases, $747,500 for Treasury collection costs, and $41,000 in cost allocation adjustments. The Governor vetoed boilerplate Section 306(3) which had required an alternative study of costs associated with collection of motor fuel taxes; the veto reduced the Department of Treasury MTFIDG by $100,000, the estimated cost of the study.	Gross Restricted	$49,702,300 49,702,300	$1,409,900 1,409,900
*3. Executive Direction* Includes funding for Unclassified salaries, Asset Management Council, and Office of Commission Audits. The original Executive recommendation reflected economic increases of $165,200, partially offset by baseline reduction of $178,700 STF – part of $20 million in STF reductions. Enacted budget includes additional $82,900 STF decrease to recognize rejection of NERES 3% pay increase; plus $45,200 in STF reductions to free up STF matching funds for federal-aid road and bridge program.	FTEs Gross Restricted	37.3 $5,771,100 5,771,100	0.0 ($108,900) (108,900)
*4. Business Support* Appropriations unit includes line items Business support, Economic development and enhancement, Property management, and Worker’s compensation. Budget reflects employee-related economic increases of $404,700, reduction in building occupancy costs of $829,600, and baseline STF reductions of $245,200 – part of $20 million in STF reductions. Enacted budget includes additional $132,600 decrease to recognize rejection of NERES 3% pay increase, plus $62,100 STF reduction to free up STF matching funds for federal-aid road and bridge program.	FTEs Gross Restricted	57.0 $17,541,700 17,541,700	1.0 ($749,300) (749,300)
*5. Information Technology* Reflects economic adjustments of $559,800, anticipated savings fromDIT/DMB merger, and baseline STF program reductions of $1.4 million – part of $20.0 million in STF program reductions. Enacted budget includes additional $252,000 decrease to reflect rejection of NERES 3% pay increase, and $356,000 STF reduction to free up STF matching funds for federal-aid road and bridge program.	Gross Federal Restricted	$29,211,600 510,800 28,700,800	($1,380,600) 9,700 (1,390,300)
*6. Finance, Contracts, and Support Services* Includes line items for Financial operations, Contract services, Department services, Performance excellence, and Welcome center operations. Reflects economic increases of $1.2 million, and baseline STF reductions of $1.2 million – part of $20.0 million in STF program reductions. Also includes $878,300IDG from the Michigan Department of Agriculture (MDA) related to consolidation of accounting functions. Enacted budget includes additional $345,400 decrease to reflect rejection of NERES 3% pay increase, and $1.2 million STF reduction to free up STF matching funds for federal-aid road and bridge program.	FTEs Gross Restricted IDG	243.5 $24,877,400 24,877,400 0	7.0 ($255,900) (1,134,200) 878,300
**7. Transportation Planning– PARTIAL VETO Reflects economic increases of $1.7 million; STF baseline reductions of $363,700 – part of $20.0 million in STF program reductions. Enacted** budget includes additional $92,100 decrease to free up STF matching funds for federal-aid road and bridge program. Also reflects the Governor's veto of boilerplate Sec. 394 which required a study of state transportation funding; the cost of the study was estimated to be $10,000.	FTEs Gross Federal Restricted	176.0 $36,456,300 22,000,000 14,456,300	0.0 $1,408,900 (10,000) 1,418,900
*8. Design and Engineering Services* Reflects economic increases of $8.5 million; STF program reductions of $3.8 million – part of $20.0 million in STF program reductions. Enacted budget includes additional $853,800 decrease to reflect rejection of NERES 3% pay increase, and $974,200 STF reduction to free up STF matching funds for federal-aid road and bridge program.	FTEs Gross Federal Restricted	1,494.8 $112,908,100 23,529,800 89,378,300	(2.0) $3,749,900 0 3,749,900
*9. State Trunkline Maintenance* Reflects economic increases of $4.1 million; STF baseline reductions of $12.8 million – part of $20.0 million in STF program reductions. Enacted budget includes additional $294,000 decrease to reflect rejection of NERES 3% pay increase, and $3.2 million reduction to free up STF matching funds for federal-aid road and bridge program. Rolls up the two current line items into a single State trunkline operations line.	FTEs Gross Restricted	834.7 $285,806,000 285,806,000	2.0 ($11,142,100) (11,142,100)
*10. State Trunkline Road* *and Bridge Construction* Recognizes approximately the same level of federal funding as FY 2009-10 based on a department proposal for securing $84 million in state funds needed to match all federal funds. Elements of the proposal are: issuing $40 million in short term notes; use of $11 million in soft-match toll credits; redirection of $12 million in drivers license fees from the Transportation Economic Development Fund (TEDF); recognition of $2.1 million in STF savings from the Civil Service Commission's rejection of a proposed 3% pay increase for non-represented employees (NEREs); $6 million in other program reductions, including a $1 million reduction in Welcome Center operations; deferral of $11.3 million in capital outlay facility projects, including $1 million related to salt sheds at contract maintenance agencies; and the deferral of $1.6 million in capital funding for a proposed Welcome Center in Port Huron. These items represent internal fund shifts, or, in the cases of the proposed note issue and the use of toll credits, are "off-budget." Note: FY 2009-10 YTD figure includes $30 million in federal stimulus (ARRA) funds appropriated in 2010 PA 92 (Senate Bill 928).	Gross Federal ARRA Local Restricted	$823,918,800 706,812,600 30,000,000 30,000,000 57,106,200	($27,692,600) 6,206,900 (30,000,000) 0 (3,899,500)
*11. Local Federal Aid Road* *and Bridge Construction* Appropriates $248.8 million, the same as FY 2009-10, based on estimated available federal revenue and the Act 51 directive that 25% of most federal aid program funds be made available to local road agencies. While the appropriation of federal funds for local road agency programs is the same as prior year, it is not clear to what extent some local road agencies will have trouble matching federal funds.	Gross Federal	$248,751,000 248,751,000	$0 0
*12.* *Local* *Bridge* *Fund* Act 51 earmark reflects anticipated reduction in gasoline tax revenue.	Gross Restricted	$26,905,000 26,905,000	($105,200) (105,200)
*13. MTF Distribution to Local Road Agencies* Recognizes $858.8 million MTF ($551.4 million to county road commissions,$307.4 million tocities/villages) based on February 2010 revenue estimates and Act 51 formula; actual distribution will be based on actualMTFrevenue, which may differ from estimates.	Gross Restricted	$886,145,400 886,145,400	($27,388,900) (27,388,900)
**14. Transportation Economic Development Fund (TEDF)– PARTIAL VETO** Reflects anticipated $1.3 million reduction in interest earnings on the TEDF fund balance; that reduction is partially offset by $54,800 reduction in TEDF-related debt service. Also reflects the Governor's veto of a $40,000 Forest Roads earmark for truck inspection turn-offs (and related boilerplate Section 608). TEDF revenue reflects the shift of $12 million in driver’s license fee revenue to the state trunkline road and bridge program to help provide matching funds for federal aid. [In FY 2009-10 $12 million in TEDF driver's license fee revenue was redirected to the state General Fund.] Includes a new TEDF line item for "Non-profit street railways" with an initial appropriation of $1.0 million, and related boilerplate in Section 398. This appropriation will require an amendment to the TEDF authorizing legislation. Note: FY 2009-10 YTD figure includes $25 million in federal stimulus (ARRA) funds appropriated in 2010 PA 92 (Senate Bill 928) for a Non-profit street railway.	Gross ARRA Restricted	$58,767,000 25,000,000 33,767,000	($26,341,500) (25,000,000) (1,341,500)
*15. Aeronautics and Freight Services* Reflects economic increases. Appropriations unit includes three operating line items: Airport improvement services, Aviation services, and Freight and safety services, as well as the Aviation services grant program.	FTEs Gross Restricted	84.0 $11,157,100 11,157,100	0.0 $537,300 537,300
*16. Public Transportation Services* This appropriations unit administers passenger public transportation programs. Reflects economic increases and anticipated increase in federal aid.	FTEs Gross Federal Restricted	46.0 $5,414,500 762,100 4,652,400	0.0 $413,100 100,000 313,100
*17. Bus Transit - Local Bus Operating Assistance* Recommends $166.6 million (CTF) for state operating assistance to local public transit agencies – unchanged since FY 2006-07.	Gross Restricted	$166,624,000 166,624,000	$0 0
*18. Bus Transit - Non-Urban Operating/Capital* Recognizes anticipated increase in federal non-urban transit grants. Note: FY 2009-10 YTD figure includes $524,100 in federal stimulus (ARRA) funds appropriated in 2010 PA 92 (Senate Bill 928) for various non-urban capital projects.	Gross Federal ARRA Local	$22,324,100 21,000,000 524,100 800,000	$463,800 987,900 (524,100) 0
*19. Rail Passenger Service* Provides operating assistance to AMTRAK for Port Huron/Chicago and Grand Rapids/Chicago rail service with state restricted funds; federal revenue supports capital assistance. Gross appropriations in this line would be $11.7 million, including $8.7 million from the CTF. Note: FY 2009-10 YTD figure reflects legislative transfers which increased YTD authorization by $3.7 million including $2.5 million CTF. However, the YTD figure does not include $40.3 million in federal stimulus (ARRA) funds appropriated in 2010 PA 92 (Senate Bill 928) for high-speed rail projects.	Gross Federal Local Restricted	$12,380,000 3,800,000 380,000 8,200,000	($713,000) (800,000) (380,000) 467,000
*20. Specialized Services* Line supports transit programs for elderly and disabled citizens. Recommends $7.4 million; increase reflects anticipated federal and CTF revenue.	Gross Federal Local Restricted	$7,358,800 1,700,000 1,700,000 3,958,800	$85,700 85,000 0 0
*21. Municipal Credit Program* ReflectsAct 51 earmark level of not less than $2.0 million; reflects anticipated CTF revenue.	Gross Restricted	$2,000,000 2,000,000	$0 0
*22. Bus Capital* Provides matching funds for federal transit grants to local transit agencies. Reflects Act 51 earmark floor of not less than $8.0 million CTF. Note: FY 2009-10 YTD figure reflects a legislative transfer which increased YTD authorization by $3.3 million CTF. However, the YTD figure does not include $2.6 million in federal stimulus (ARRA) funds appropriated in 2010 PA 1 (House Bill 5404) for various local bus capital projects.	Gross Federal Local Restricted	$41,474,500 28,000,000 5,000,000 8,474,500	($174,500) 300,000 0 (474,500)
*23.* *Transit Oriented Development – VETOED* Governor vetoed this $100 placeholder (TEDF) and related boilerplate section 399.	Gross Restricted	$0 0	~~$100~~ ~~100~~
*24. State/Local Capital Facilities Projects* Appropriates $12.9 million which includes $9.9 million for Port Huron Welcome center replacement,BlueWater Bridge inspection station, administration, and maintenance facilities. Budget does not include $1.6 million STF for thePort HuronWelcome Center or $1.0 million proposed for salt shed buildings and containment facilities; those funds were redirected to the road and bridge program to match federal funds. [Part of the department's plan to match all federal funds includes the lapse of $10.3 million in STF spending authority related to capital outlay projects approved in prior fiscal year budgets and carried forward.]	Gross Federal Restricted	$2,288,000 0 2,288,000	$10,603,100 6,514,800 4,088,300
*25. AERO Capital Projects* Provides funding for FY 2010-11 Aeronautics Capital program; reflects anticipated federal program funding.	Gross Federal Local Restricted	$123,425,700 104,874,700 16,023,400 2,527,600	($179,300) (1,946,800) 422,600 1,344,900
*26. Economics* Estimated additional funding needed to maintain baseline service levels: $5.7 million for salaries/wages, $3.6 million for health insurance, $7.8 million for retirement contributions, and $57,900 for workers compensation. Building occupancy costs decrease by $887,500. [Note that the $16.3 million in economic increases originally computed by the State Budget Office will be partially offset by the $2.7 million in savings from the Civil Service Commission's rejection of a proposed 3% pay increase for non-represented employees. Of this savings, $2.0 million STF is recognized in the enacted budget as part of the state funds used to match federal aid highway funds.]	Gross Restricted	N/A N/A	$16,256,600 16,256,600

Budget Changes From FY 2009-10 YTD Appropriations

FY 2009-10 YTD

(as of9/30/10)

Enacted Change

From YTD

1. Debt Service

Recommends $246.8 million, reflecting anticipated debt service schedules. Budget includes $7.5 million in a new fund source "IRS rebate" to reflect rebates associated with a new Build America Bonds issued by the department in 2009. This new fund source is included the bill and our analysis with other state restricted revenue.

While the appropriation includes $29.8 million related to CTF debt service, $13.2 million of that amount would not be used for debt service; it would instead be transferred to a bond proceeds account for subsequent expenditure on public transportation capital projects. The department was able to reduce CTF debt service for three years by restructuring CTF bonds in May 2009. The $13.2 million represents the second year of reduced CTF debt service. The transfer of this savings to a bond proceeds account is required byIRS regulations governing tax-free bonds, and would be authorized by boilerplate Section 745.

Gross

Federal

Restricted

$251,637,300

58,163,500

193,473,800

($4,824,300)

(12,331,400)

7,507,100

2. Support Services by Other State Departments – PARTIAL VETO

Authorization for interdepartmental grants (IDGs) for services provided by eight other state departments; includes $20 million MTF to the Department of State and $8.3 million MTF to the Department of Treasury for the costs of collecting transportation revenue. Increases from prior year include $721,500 in economic increases, $747,500 for Treasury collection costs, and $41,000 in cost allocation adjustments.

The Governor vetoed boilerplate Section 306(3) which had required an alternative study of costs associated with collection of motor fuel taxes; the veto reduced the Department of Treasury MTFIDG by $100,000, the estimated cost of the study.

Gross

Restricted

$49,702,300

49,702,300

$1,409,900

1,409,900

3. Executive Direction

Includes funding for Unclassified salaries, Asset Management Council, and Office of Commission Audits. The original Executive recommendation reflected economic increases of $165,200, partially offset by baseline reduction of $178,700 STF – part of $20 million in STF reductions.

Enacted budget includes additional $82,900 STF decrease to recognize rejection of NERES 3% pay increase; plus $45,200 in STF reductions to free up STF matching funds for federal-aid road and bridge program.

FTEs

Gross

Restricted

37.3

$5,771,100

5,771,100

0.0

($108,900)

(108,900)

4. Business Support

Appropriations unit includes line items Business support, Economic development and enhancement, Property management, and Worker’s compensation. Budget reflects employee-related economic increases of $404,700, reduction in building occupancy costs of $829,600, and baseline STF reductions of $245,200 – part of $20 million in STF reductions.

Enacted budget includes additional $132,600 decrease to recognize rejection of NERES 3% pay increase, plus $62,100 STF reduction to free up STF matching funds for federal-aid road and bridge program.

FTEs

Gross

Restricted

57.0

$17,541,700

17,541,700

1.0

($749,300)

(749,300)

5. Information Technology

Reflects economic adjustments of $559,800, anticipated savings fromDIT/DMB merger, and baseline STF program reductions of $1.4 million –

part of $20.0 million in STF program reductions.

Enacted budget includes additional $252,000 decrease to reflect rejection of NERES 3% pay increase, and $356,000 STF reduction to free up STF matching funds for federal-aid road and bridge program.

Gross

Federal

Restricted

$29,211,600

510,800

28,700,800

($1,380,600)

9,700

(1,390,300)

6. Finance, Contracts, and Support Services

Includes line items for Financial operations, Contract services, Department services, Performance excellence, and Welcome center operations. Reflects economic increases of $1.2 million, and baseline STF reductions of $1.2 million – part of $20.0 million in STF program reductions. Also includes $878,300IDG from the Michigan Department of Agriculture (MDA) related to consolidation of accounting functions.

Enacted budget includes additional $345,400 decrease to reflect rejection of NERES 3% pay increase, and $1.2 million STF reduction to free up STF matching funds for federal-aid road and bridge program.

FTEs

Gross

Restricted

IDG

243.5

$24,877,400

24,877,400

7.0

($255,900)

(1,134,200)

878,300

7. Transportation Planning– PARTIAL VETO

Reflects economic increases of $1.7 million; STF baseline reductions of $363,700 – part of $20.0 million in STF program reductions.

Enacted budget includes additional $92,100 decrease to free up STF matching funds for federal-aid road and bridge program. Also reflects the Governor's veto of boilerplate Sec. 394 which required a study of state transportation funding; the cost of the study was estimated to be $10,000.

FTEs

Gross

Federal

Restricted

176.0

$36,456,300

22,000,000

14,456,300

0.0

$1,408,900

(10,000)

1,418,900

8. Design and Engineering Services

Reflects economic increases of $8.5 million; STF program reductions of $3.8 million – part of $20.0 million in STF program reductions.

Enacted budget includes additional $853,800 decrease to reflect rejection of NERES 3% pay increase, and $974,200 STF reduction to free up STF matching funds for federal-aid road and bridge program.

FTEs

Gross

Federal

Restricted

1,494.8

$112,908,100

23,529,800

89,378,300

(2.0)

$3,749,900

3,749,900

9. State Trunkline Maintenance

Reflects economic increases of $4.1 million; STF baseline reductions of $12.8 million – part of $20.0 million in STF program reductions.

Enacted budget includes additional $294,000 decrease to reflect rejection of NERES 3% pay increase, and $3.2 million reduction to free up STF matching funds for federal-aid road and bridge program. Rolls up the two current line items into a single State trunkline operations line.

FTEs

Gross

Restricted

834.7

$285,806,000

285,806,000

2.0

($11,142,100)

(11,142,100)

10. State Trunkline Road and Bridge Construction

Recognizes approximately the same level of federal funding as FY 2009-10 based on a department proposal for securing $84 million in state funds needed to match all federal funds. Elements of the proposal are: issuing $40 million in short term notes; use of $11 million in soft-match toll credits; redirection of $12 million in drivers license fees from the Transportation Economic Development Fund (TEDF); recognition of $2.1 million in STF savings from the Civil Service Commission's rejection of a proposed 3% pay increase for non-represented employees (NEREs); $6 million in other program reductions, including a $1 million reduction in Welcome Center operations; deferral of $11.3 million in capital outlay facility projects, including $1 million related to salt sheds at contract maintenance agencies; and the deferral of $1.6 million in capital funding for a proposed Welcome Center in Port Huron. These items represent internal fund shifts, or, in the cases of the proposed note issue and the use of toll credits, are "off-budget."

Note: FY 2009-10 YTD figure includes $30 million in federal stimulus (ARRA) funds appropriated in 2010 PA 92 (Senate Bill 928).

Gross

Federal

ARRA

Local

Restricted

$823,918,800

706,812,600

30,000,000

57,106,200

($27,692,600)

6,206,900

(30,000,000)

(3,899,500)

11. Local Federal Aid Road and Bridge Construction

Appropriates $248.8 million, the same as FY 2009-10, based on estimated available federal revenue and the Act 51 directive that 25% of most federal aid program funds be made available to local road agencies. While the appropriation of federal funds for local road agency programs is the same as prior year, it is not clear to what extent some local road agencies will have trouble matching federal funds.

Gross

Federal

$248,751,000

248,751,000

12. Local Bridge Fund

Act 51 earmark reflects anticipated reduction in gasoline tax revenue.

Gross

Restricted

$26,905,000

26,905,000

($105,200)

(105,200)

13. MTF Distribution to Local Road Agencies

Recognizes $858.8 million MTF ($551.4 million to county road commissions,$307.4 million tocities/villages) based on February
2010 revenue estimates and Act 51 formula; actual distribution will be based on actualMTFrevenue, which may differ from estimates.

Gross

Restricted

$886,145,400

886,145,400

($27,388,900)

(27,388,900)

14. Transportation Economic Development Fund (TEDF)– PARTIAL VETO

Reflects anticipated $1.3 million reduction in interest earnings on the TEDF fund balance; that reduction is partially offset by $54,800 reduction in TEDF-related debt service. Also reflects the Governor's veto of a $40,000 Forest Roads earmark for truck inspection turn-offs (and related boilerplate Section 608).

TEDF revenue reflects the shift of $12 million in driver’s license fee revenue to the state trunkline road and bridge program to help provide matching funds for federal aid. [In FY 2009-10 $12 million in TEDF driver's license fee revenue was redirected to the state General Fund.]

Includes a new TEDF line item for "Non-profit street railways" with an initial appropriation of $1.0 million, and related boilerplate in Section 398. This appropriation will require an amendment to the TEDF authorizing legislation.

Note: FY 2009-10 YTD figure includes $25 million in federal stimulus (ARRA) funds appropriated in 2010 PA 92 (Senate Bill 928) for a Non-profit street railway.

Gross

ARRA

Restricted

$58,767,000

25,000,000

33,767,000

($26,341,500) (25,000,000)

(1,341,500)

15. Aeronautics and Freight Services

Reflects economic increases. Appropriations unit includes three operating line items: Airport improvement services, Aviation services, and Freight and safety services, as well as the Aviation services grant program.

FTEs

Gross

Restricted

84.0

$11,157,100

11,157,100

0.0

$537,300

537,300

16. Public Transportation Services

This appropriations unit administers passenger public transportation programs. Reflects economic increases and anticipated increase in federal aid.

FTEs

Gross

Federal

Restricted

46.0

$5,414,500

762,100

4,652,400

0.0

$413,100

100,000

313,100

17. Bus Transit - Local Bus Operating Assistance

Recommends $166.6 million (CTF) for state operating assistance to local public transit agencies – unchanged since FY 2006-07.

Gross

Restricted

$166,624,000

166,624,000

18. Bus Transit - Non-Urban Operating/Capital

Recognizes anticipated increase in federal non-urban transit grants.

Note: FY 2009-10 YTD figure includes $524,100 in federal stimulus (ARRA) funds appropriated in 2010 PA 92 (Senate Bill 928) for various non-urban capital projects.

Gross

Federal

ARRA

Local

$22,324,100

21,000,000

524,100

800,000

$463,800

987,900

(524,100)

19. Rail Passenger Service

Provides operating assistance to AMTRAK for Port Huron/Chicago and Grand Rapids/Chicago rail service with state restricted funds; federal revenue supports capital assistance. Gross appropriations in this line would be $11.7 million, including $8.7 million from the CTF.

Note: FY 2009-10 YTD figure reflects legislative transfers which increased YTD authorization by $3.7 million including $2.5 million CTF. However, the YTD figure does not include $40.3 million in federal stimulus (ARRA) funds appropriated in 2010 PA 92 (Senate Bill 928) for high-speed rail projects.

Gross

Federal

Local

Restricted

$12,380,000

3,800,000

380,000

8,200,000

($713,000)

(800,000)

(380,000)

467,000

20. Specialized Services

Line supports transit programs for elderly and disabled citizens.

Recommends $7.4 million; increase reflects anticipated federal and CTF revenue.

Gross

Federal

Local

Restricted

$7,358,800

1,700,000

3,958,800

$85,700

85,000

21. Municipal Credit Program

ReflectsAct 51 earmark level of not less than $2.0 million; reflects anticipated CTF revenue.

Gross

Restricted

$2,000,000

2,000,000

22. Bus Capital

Provides matching funds for federal transit grants to local transit agencies. Reflects Act 51 earmark floor of not less than $8.0 million CTF.

Note: FY 2009-10 YTD figure reflects a legislative transfer which increased YTD authorization by $3.3 million CTF. However, the YTD figure does not include $2.6 million in federal stimulus (ARRA) funds appropriated in 2010 PA 1 (House Bill 5404) for various local bus capital projects.

Gross

Federal

Local

Restricted

$41,474,500

28,000,000

5,000,000

8,474,500

($174,500)

300,000

(474,500)

23. Transit Oriented Development – VETOED

Governor vetoed this $100 placeholder (TEDF) and related boilerplate section 399.

Gross

Restricted

~~$100~~

~~100~~

24. State/Local Capital Facilities Projects

Appropriates $12.9 million which includes $9.9 million for Port Huron Welcome center replacement,BlueWater Bridge inspection station, administration, and maintenance facilities. Budget does not include $1.6 million STF for thePort HuronWelcome Center or $1.0 million proposed for salt shed buildings and containment facilities; those funds were redirected to the road and bridge program to match federal funds.

[Part of the department's plan to match all federal funds includes the lapse of $10.3 million in STF spending authority related to capital outlay projects approved in prior fiscal year budgets and carried forward.]

Gross

Federal

Restricted

$2,288,000

2,288,000

$10,603,100

6,514,800

4,088,300

25. AERO Capital Projects

Provides funding for FY 2010-11 Aeronautics Capital program; reflects anticipated federal program funding.

Gross

Federal

Local

Restricted

$123,425,700

104,874,700

16,023,400

2,527,600

($179,300)

(1,946,800)

422,600

1,344,900

26. Economics

Estimated additional funding needed to maintain baseline service levels: $5.7 million for salaries/wages, $3.6 million for health insurance, $7.8 million for retirement contributions, and $57,900 for workers compensation. Building occupancy costs decrease by $887,500.

[Note that the $16.3 million in economic increases originally computed by the State Budget Office will be partially offset by the $2.7 million in savings from the Civil Service Commission's rejection of a proposed 3% pay increase for non-represented employees. Of this savings, $2.0 million STF is recognized in the enacted budget as part of the state funds used to match federal aid highway funds.]

Gross

Restricted

N/A

N/A

$16,256,600

16,256,600

Boilerplate Changes From FY 2009-10
Sec. 201. Total State Spending and Payments to Local Units of Government– Retained Identifies total state spending in Part 1 and state payments to local units of government.
Sec. 202. Management and Budget Act– Retained References the Management and Budget Act.
Sec. 203. Abbreviations– Retained Defines abbreviations used in the Act.
Sec. 204. Civil Service 1% Billing– Retained Provides for quarterly Civil Service Commission charges to MDOT.
Sec. 205. Hiring Freeze– Retained Establishes a hiring freeze on state classified civil service.
Sec. 206. Contingency Appropriations– Retained Provides for contingency appropriations in accordance with Section 393(2) of the Management and Budget Act, $200.0 million federal; $40.0 million state restricted, $1.0 million in local, and $1.0 million private funds.
Sec. 207. Privatization– Retained Provides for reports on privatization activities and defines privatize and privatization.
Sec. 208. Internet Reports– Retained Provides for use of Internet to fulfill reporting requirements.
Sec. 209. Foreign Goods and Services–Retained Prohibits use of foreign goods and services if comparatively priced and comparable quality American goods and services are available. Directs MDOT to give priority to Michigan goods and services, and to businesses owned by Michigan veterans.
Sec. 210. Deprived and Depressed Communities–Retained Requires director to take reasonable steps to ensure that businesses in deprived and depressed communities compete for contracts to provide services or supplies or both.
Sec. 211. Receive and Retain Reports–Retained Provides guidelines regarding record retention.
Sec. 259. DIT User Fees – Retained Provides for user fees to be paid toDIT.
*Sec. 260. Out-of-State Travel– Retained* Establishes limitation on out-of-state travel and creates travel reporting requirement.
**Sec. 261. Employee Discipline–Retained** Prohibits departments and agencies from taking disciplinary action against an employee for communicating with legislator or legislative staff.
**Sec. 262. Hire of Outside Legal Counsel–Retained** Prohibits MDOT from hiring a person to provide legal services that are the responsibility of the Attorney General; exempts bond counsel.
**Sec. 263. Impact of New Legislation and Administrative Rules– Retained** Requires a report, by April 1, 2011, on specific policy changes adopted to implement new public acts. Prohibits MDOT from adopting administrative rules that have a disproportionate impact on small business.
Sec. 266. Transparency/FTE Report– NEW Requires quarterly report on FTE positions; directs department to use funds not to exceed $10,000 to develop, post, and maintain on a publically accessible website expenditures made during the fiscal year.
Sec. 301. Permit Fees/Bridge Tolls–Retained Provides for permit and FOIA processing fees; provides process for raising bridge tolls.
Sec. 303. Legislative Report–Retained Provides for report (on request) of funds received by city, village, and county road commission by legislative district.
Sec. 304. Confidentiality of Bid Documents–Retained Provides for confidentiality of highway project bid documents.
Sec. 305. Lease of Space in Public Transportation Property–Retained Requires lease of space in public transportation facilities at market rates; requires that revenue be used for property maintenance/improvements.
Sec. 306. Use of Transportation Funds by Other State Agencies/Biennial Audit –PARTIAL VETO Sets guidelines for use of transportation funds (grants) by other state agencies; requires report. Provides for biennial audit of use of transportation funds by other state departments, due nine months after state CAFR issue. The Governor vetoed Subsection (3) which required the State Treasurer to perform a cost allocation study based on time and effort.
Sec. 307. Rolling Five-Year Plan – Retained Requires MDOT to provide a rolling five-year highway construction plan by March 1 of each year.
Sec. 308. Contract Compliance–Retained Requires that MDOT and local road agencies pursue compliance with contract specifications for construction and maintenance; provides for sanctions for unsatisfactory contractors; requires a report.
Sec. 309. Administrative Costs–Retained Requires MDOT to continue its efforts to reduce administrative costs.
Sec. 310. State Transportation Commission Minutes/Agenda– Retained Requires MDOT to provide copies of minutes and agenda to House and Senate Appropriations Subcommittees on Transportation, House and Senate Fiscal Agencies, and State Budget Director.
Sec. 312. State Trunkline Fund Carryforward–Retained Allows carryforward authority for STF; appropriates for state trunkline federal aid and road and bridge program.
Sec. 314. Report on Internal Auditor– Retained Provides for report on activities of internal auditor; report due February 1.
Sec. 319. Rest Area Maintenance–Retained Requires signs/telephone numbers for reporting unclean and unsafe conditions at rest areas.
Sec. 321. Complete Streets/Enhancement Grants–NEW Directs the department to give preference, in awarding Enhancement grants, to applicants which have adopted Complete Streets policies.
Sec. 322. Complete Streets/Universities–NEW Directs the department to work with requesting universities on Complete Streets polices.
Sec. 334. Women- and Minority-Owned Businesses Program–Retained Requires MDOT to continue MBE/WBE program; September 30th reporting requirement.
Sec. 353. Prompt Payment– Retained Directs MDOT to review contractor payment process to ensure that contractors and subs are paid promptly.
Sec. 357. Local Federal Aid Project Review–Retained Directs MDOT to complete project reviews within 120 days; requires system for monitoring review process.
Sec. 374. MDOT Employee Newsletters–Retained Requires MDOT to distribute employee newsletters electronically.
Sec. 375. MDOT Open Houses and Groundbreaking Ceremonies–Retained Prohibits MDOT from reimbursing contractors or consultants for groundbreaking ceremonies, receptions, open houses, or press conferences related to transportation projects funded from appropriations made in Act.
Sec. 376. Deferred Project Report–Retained Requires report by March 1, 2011, on the status of 17 projects deferred in 2003, then restored to Five-year Plan. Indicates legislative intent that this be the final report.
Sec. 383. Report on Use of State Airfleet–Retained Requires quarterly report on use of MDOT-owned aircraft; restricts use by legislative employees; requires recovery of department costs.
Sec. 384. Detroit River International Crossing (DRIC) –MODIFIED Limits spending for 3-month period ending December 31, 2010 to $250,000 under any contract entered prior to September 1, 2010; limits spending for 5-month period ending May 31, 2011 to $500,000 under any contract entered prior to September 1, 2010; prohibits the department from entering any new contract after September 1, 2010 unless specific legislation authorizing DRIC has been enacted; requires legislative report by March 31, 2011; indicates that spending restrictions of the section will not apply if DRIC enabling legislation is enacted.
Sec. 385. Private Facility Toll Credits –NEW Restricts use of toll credits earned from private toll facilities.
Sec. 393. Best Practices for Public Transportation– Retained Directs department to support best practices.
Sec. 394. Revisit Act 51 Distribution Formula –VETOED Indicated legislative intent that department study transportation funding distribution formula; requires consultation with CRAM & MML. The Governor indicated that the study had already been done.
Sec. 395. County Road C-56 Jurisdiction– Retained Indicates legislative intent that department assume jurisdiction of County Road C-56 between US-31 and I-75 in Charlevoix County.
Sec. 398. Street Railway Appropriation –MODIFIED Provides for the appropriation a street railway pursuant to section 10e(22) of 1951 PA 51.
**Sec. 399. Transit Oriented Development –VETOED** Explained $100 appropriation for Transit oriented development in Part 1.
Sec. 401. Federal Aid Distribution Report –Retained Requires Department to notify local agencies, Legislature, and state budget director on proposed distribution of federal funds between state and local units.
Sec. 402. Sale of Local Federal Aid –Retained Authorizes local road agencies to sell federal aid to Department or to other local road agencies.
Sec. 501. Motor Carrier Act –Retained Describes distribution of revenue received under the Motor Carrier Act (1933 PA 254).
Sec. 502. Treasury Audits of Local Road Agencies –Retained Provides for audits of local road agencies by Department of Treasury.
Sec. 503. TEDF/Local Bridge Fund Carryforward –Retained Provides carryforward authority for TEDF and Local Bridge funds; prevents diversion for other purposes; authorizes use of federal, local, or private funds for program. .
Sec. 504. MTF Distribution –Retained Requires use of MTF in accordance with Act 51 requirements.
Sec. 601. Road Construction Warranties –Retained Encourages use of road construction warranties; provides for report by September 30 of each year.
Sec. 602. Manufactured Pipe –Retained Provides standards for use and testing of manufactured pipe.
Sec. 603. Traffic Congestion –Retained Directs Department to consider traffic congestion be used as criteria in project selection; provides specific criteria for evaluating traffic congestion.
Sec. 604. Work Zone Safety Signs –NEW Indicates legislative intent that the department place signs in work zones notifying vehicle operators of increased penalties for traffic offenses in work zones.
**Sec. 607. Interchange – I-75 at Corunna Road, Flint –Retained** Legislative intent regarding proposed project.
**Sec. 608. Truck Inspection Stations –VETOED** Earmarked $40,000 from the TEDF (Forest Roads) for two truck inspection stations
*Sec. 610. Dead Deer –* Retained Describes legislative intent regarding clean-up of dead deer and other large animal remains.
Sec. 612. Incentive/Disincentive –Retained Requires Department to establish guidelines for use of incentive/disincentive contracts; establishes a reporting requirement; report due January 1st of each year.
**Sec. 615. Interchange M-48 and I75 in Chippewa County –Retained** Indicates legislative intent that Department construct full interchange.
**Sec. 654. Long-term Viability of Mackinac Bridge –Retained** Indicates legislative intent that the Mackinac Bridge Authority protect long-term viability of the Mackinac Bridge.
Sec. 656. M-49 Upgrade “Green Highway”–Retained Indicates legislative intent that the Department upgrade M-49 in Hillsdale County to a “designated” truck route.
Sec. 658. Interchange at I-196 and Phoenix Road in South Haven –Retained Indicates legislative intent that Department reconstruct interchange.
Sec. 659. Life Cycle Cost for Pavement Projects –Retained Allows the use of historical/comparable data from states with similar climate, soil, and vehicular traffic.
Sec. 660. Use of Alternative Materials–Retained Encourages the department to examine the use of alternative road surface materials.
Sec. 661. Completion of US-127 St. Johns to Ithaca– Retained Indicates legislative intent that Department complete engineering and right of way acquisition.
**Sec. 662. Improved Emergency Response Access Point –NEW** Intent language that Department work with Graafschap Fire Department and Laketown Township to improve emergency access on US-31 in Allegan County.
Sec. 664. Use of Additional MTF Revenue –NEW Directs that revenue in excess of revenue estimates be used to reinstate delayed projects.
Sec. 665. Prohibition on Land Purchase for Watervliet I-94 rest area –NEW Indicates legislative intent that appropriated funds not be used for property acquisition related to new rest area.
Sec. 701. Intercity Bus Equipment Fund–Retained Provides for separate accounting and carryforward authority for this fund.
Sec. 702. Rail Preservation Fund–Retained Provides for separate accounting and carryforward authority for this fund; reference to State Transportation Preservation Act of 1976 (1976 PA 295).
Sec. 703. Rail Abandonment Notice –Retained Requires Department to notify Legislature when railroad companies file for abandonment of lines.
Sec. 706. Detroit/Wayne County Port Authority–Retained Requires report due by February 15 of each year.
Sec. 708. Intercity Bus Equipment Program–Retained Requires annual lease of not less than $1,000.
Sec. 709. Intercity Bus Essential Corridor –Retained Identifies essential bus corridors; prohibits operating subsidy to any entity competing with another public or private carrier over the same route.
Sec. 711. Seven-Day Rail Passenger Service (AMTRAK) – MODIFIED Directs Department to negotiate with a rail carrier to provide seven-day Port Huron/Chicago and Grand Rapids/Chicago service. Adds directive that department work with rail carrier to identify ways to accommodate transport of bicycles by passengers.
Sec. 714. Local Transit Demand-Response Services–Retained Requires that Department, in cooperation with local transit agencies, work to ensure that demand-response services are provided throughout Michigan.
Sec. 731. Intercity Bus Space Rental–Retained Directs Department to charge transit agencies and intercity bus carriers the same rent when leasing similar space in state-owned intermodal facilities.
Sec. 734. Transit Agency Service Performance Measures –Retained Directs Department to work to ensure that transit agencies meet certain service performance measures.
Sec. 740. Review of CTF Fund Balances–Retained Requires report on unencumbered CTF balance by March 1 of each year.
**Sec. 741. Ann Arbor and Northwest Michigan Railroad –MODIFIED** Requires report on progress made to improve rail track to support passenger trains at 59MPH..
Sec. 743. Use HEV Vehicles–Retained Encourages the department to include hybrid electric vehicles in RFPs purchased through the department.
Sec. 745. Appropriation of CTF Debt Service –MODIFIED Directs that $13.2 million appropriated for CTF debt service be transferred to bond proceeds account in accordance withIRS regulation. [Similar language was included in FY 2009-10 supplemental HB 5394.]
Sec. 801. State Aeronautics Fund–Retained Requires that unexpended funds in the State Aeronautics Fund lapse back to the fund.
Sec. 901. Aeronautics Capital Program–Retained Permits department to contract for airport improvement projects on behalf of local airport owners; local match requirements, requires local agencies to obtain authorization before submitting projects to federal agencies.
Sec. 902. Aeronautics Capital Program Status Report–Retained Provides reporting requirement.
Sec. 903. Capital Outlay Carry Forward–Retained Provides for carry forward authority in accordance with the Management and Budget Act.
Sec. 904. Capital Outlay Authorization/Lapse– Retained Language on allocation of lump-sum appropriations.

Boilerplate Changes From FY 2009-10

Sec. 201. Total State Spending and Payments to Local Units of Government– Retained

Identifies total state spending in Part 1 and state payments to local units of government.

Sec. 202. Management and Budget Act– Retained

References the Management and Budget Act.

Sec. 203. Abbreviations– Retained

Defines abbreviations used in the Act.

Sec. 204. Civil Service 1% Billing– Retained

Provides for quarterly Civil Service Commission charges to MDOT.

Sec. 205. Hiring Freeze– Retained

Establishes a hiring freeze on state classified civil service.

Sec. 206. Contingency Appropriations– Retained

Provides for contingency appropriations in accordance with Section 393(2) of the Management and Budget Act, $200.0 million federal; $40.0 million state restricted, $1.0 million in local, and $1.0 million private funds.

Sec. 207. Privatization– Retained

Provides for reports on privatization activities and defines privatize and privatization.

Sec. 208. Internet Reports– Retained

Provides for use of Internet to fulfill reporting requirements.

Sec. 209. Foreign Goods and Services–Retained

Prohibits use of foreign goods and services if comparatively priced and comparable quality American goods and services are available. Directs MDOT to give priority to Michigan goods and services, and to businesses owned by Michigan veterans.

Sec. 210. Deprived and Depressed Communities–Retained

Requires director to take reasonable steps to ensure that businesses in deprived and depressed communities compete for contracts to provide services or supplies or both.

Sec. 211. Receive and Retain Reports–Retained

Provides guidelines regarding record retention.

Sec. 259. DIT User Fees – Retained

Provides for user fees to be paid toDIT.

Sec. 260. Out-of-State Travel– Retained

Establishes limitation on out-of-state travel and creates travel reporting requirement.

Sec. 261. Employee Discipline–Retained

Prohibits departments and agencies from taking disciplinary action against an employee for communicating with legislator or legislative staff.

Sec. 262. Hire of Outside Legal Counsel–Retained

Prohibits MDOT from hiring a person to provide legal services that are the responsibility of the Attorney General; exempts bond counsel.

Sec. 263. Impact of New Legislation and Administrative Rules– Retained

Requires a report, by April 1, 2011, on specific policy changes adopted to implement new public acts. Prohibits MDOT from adopting administrative rules that have a disproportionate impact on small business.

Sec. 266. Transparency/FTE Report– NEW

Requires quarterly report on FTE positions; directs department to use funds not to exceed $10,000 to develop, post, and maintain on a publically accessible website expenditures made during the fiscal year.

Sec. 301. Permit Fees/Bridge Tolls–Retained

Provides for permit and FOIA processing fees; provides process for raising bridge tolls.

Sec. 303. Legislative Report–Retained

Provides for report (on request) of funds received by city, village, and county road commission by legislative district.

Sec. 304. Confidentiality of Bid Documents–Retained

Provides for confidentiality of highway project bid documents.

Sec. 305. Lease of Space in Public Transportation Property–Retained

Requires lease of space in public transportation facilities at market rates; requires that revenue be used for property maintenance/improvements.

Sec. 306. Use of Transportation Funds by Other State Agencies/Biennial Audit –PARTIAL VETO

Sets guidelines for use of transportation funds (grants) by other state agencies; requires report. Provides for biennial audit of use of transportation funds by other state departments, due nine months after state CAFR issue. The Governor vetoed Subsection (3) which required the State Treasurer to perform a cost allocation study based on time and effort.

Sec. 307. Rolling Five-Year Plan – Retained

Requires MDOT to provide a rolling five-year highway construction plan by March 1 of each year.

Sec. 308. Contract Compliance–Retained

Requires that MDOT and local road agencies pursue compliance with contract specifications for construction and maintenance; provides for sanctions for unsatisfactory contractors; requires a report.

Sec. 309. Administrative Costs–Retained

Requires MDOT to continue its efforts to reduce administrative costs.

Sec. 310. State Transportation Commission Minutes/Agenda– Retained

Requires MDOT to provide copies of minutes and agenda to House and Senate Appropriations Subcommittees on Transportation, House and Senate Fiscal Agencies, and State Budget Director.

Sec. 312. State Trunkline Fund Carryforward–Retained

Allows carryforward authority for STF; appropriates for state trunkline federal aid and road and bridge program.

Sec. 314. Report on Internal Auditor– Retained

Provides for report on activities of internal auditor; report due February 1.

Sec. 319. Rest Area Maintenance–Retained

Requires signs/telephone numbers for reporting unclean and unsafe conditions at rest areas.

Sec. 321. Complete Streets/Enhancement Grants–NEW

Directs the department to give preference, in awarding Enhancement grants, to applicants which have adopted Complete Streets policies.

Sec. 322. Complete Streets/Universities–NEW

Directs the department to work with requesting universities on Complete Streets polices.

Sec. 334. Women- and Minority-Owned Businesses Program–Retained

Requires MDOT to continue MBE/WBE program; September 30th reporting requirement.

Sec. 353. Prompt Payment– Retained

Directs MDOT to review contractor payment process to ensure that contractors and subs are paid promptly.

Sec. 357. Local Federal Aid Project Review–Retained

Directs MDOT to complete project reviews within 120 days; requires system for monitoring review process.

Sec. 374. MDOT Employee Newsletters–Retained

Requires MDOT to distribute employee newsletters electronically.

Sec. 375. MDOT Open Houses and Groundbreaking Ceremonies–Retained

Prohibits MDOT from reimbursing contractors or consultants for groundbreaking ceremonies, receptions, open houses, or press conferences related to transportation projects funded from appropriations made in Act.

Sec. 376. Deferred Project Report–Retained

Requires report by March 1, 2011, on the status of 17 projects deferred in 2003, then restored to Five-year Plan. Indicates legislative intent that this be the final report.

Sec. 383. Report on Use of State Airfleet–Retained

Requires quarterly report on use of MDOT-owned aircraft; restricts use by legislative employees; requires recovery of department costs.

Sec. 384. Detroit River International Crossing (DRIC) –MODIFIED

Limits spending for 3-month period ending December 31, 2010 to $250,000 under any contract entered prior to September 1, 2010; limits spending for 5-month period ending May 31, 2011 to $500,000 under any contract entered prior to September 1, 2010; prohibits the department from entering any new contract after September 1, 2010 unless specific legislation authorizing DRIC has been enacted; requires legislative report by March 31, 2011; indicates that spending restrictions of the section will not apply if DRIC enabling legislation is enacted.

Sec. 385. Private Facility Toll Credits –NEW

Restricts use of toll credits earned from private toll facilities.

Sec. 393. Best Practices for Public Transportation– Retained

Directs department to support best practices.

Sec. 394. Revisit Act 51 Distribution Formula –VETOED

Indicated legislative intent that department study transportation funding distribution formula; requires consultation with CRAM & MML. The Governor indicated that the study had already been done.

Sec. 395. County Road C-56 Jurisdiction– Retained

Indicates legislative intent that department assume jurisdiction of County Road C-56 between US-31 and I-75 in Charlevoix County.

Sec. 398. Street Railway Appropriation –MODIFIED

Provides for the appropriation a street railway pursuant to section 10e(22) of 1951 PA 51.

Sec. 399. Transit Oriented Development –VETOED

Explained $100 appropriation for Transit oriented development in Part 1.

Sec. 401. Federal Aid Distribution Report –Retained

Requires Department to notify local agencies, Legislature, and state budget director on proposed distribution of federal funds between state and local units.

Sec. 402. Sale of Local Federal Aid –Retained

Authorizes local road agencies to sell federal aid to Department or to other local road agencies.

Sec. 501. Motor Carrier Act –Retained

Describes distribution of revenue received under the Motor Carrier Act (1933 PA 254).

Sec. 502. Treasury Audits of Local Road Agencies –Retained

Provides for audits of local road agencies by Department of Treasury.

Sec. 503. TEDF/Local Bridge Fund Carryforward –Retained

Provides carryforward authority for TEDF and Local Bridge funds; prevents diversion for other purposes; authorizes use of federal, local, or private funds for program. .

Sec. 504. MTF Distribution –Retained

Requires use of MTF in accordance with Act 51 requirements.

Sec. 601. Road Construction Warranties –Retained

Encourages use of road construction warranties; provides for report by September 30 of each year.

Sec. 602. Manufactured Pipe –Retained

Provides standards for use and testing of manufactured pipe.

Sec. 603. Traffic Congestion –Retained

Directs Department to consider traffic congestion be used as criteria in project selection; provides specific criteria for evaluating traffic congestion.

Sec. 604. Work Zone Safety Signs –NEW

Indicates legislative intent that the department place signs in work zones notifying vehicle operators of increased penalties for traffic offenses in work zones.

Sec. 607. Interchange – I-75 at Corunna Road, Flint –Retained

Legislative intent regarding proposed project.

Sec. 608. Truck Inspection Stations –VETOED

Earmarked $40,000 from the TEDF (Forest Roads) for two truck inspection stations

Sec. 610. Dead Deer – Retained

Describes legislative intent regarding clean-up of dead deer and other large animal remains.

Sec. 612. Incentive/Disincentive –Retained

Requires Department to establish guidelines for use of incentive/disincentive contracts; establishes a reporting requirement; report due January 1st of each year.

Sec. 615. Interchange M-48 and I75 in Chippewa County –Retained

Indicates legislative intent that Department construct full interchange.

Sec. 654. Long-term Viability of Mackinac Bridge –Retained

Indicates legislative intent that the Mackinac Bridge Authority protect long-term viability of the Mackinac Bridge.

Sec. 656. M-49 Upgrade “Green Highway”–Retained

Indicates legislative intent that the Department upgrade M-49 in Hillsdale County to a “designated” truck route.

Sec. 658. Interchange at I-196 and Phoenix Road in South Haven –Retained

Indicates legislative intent that Department reconstruct interchange.

Sec. 659. Life Cycle Cost for Pavement Projects –Retained

Allows the use of historical/comparable data from states with similar climate, soil, and vehicular traffic.

Sec. 660. Use of Alternative Materials–Retained

Encourages the department to examine the use of alternative road surface materials.

Sec. 661. Completion of US-127 St. Johns to Ithaca– Retained

Indicates legislative intent that Department complete engineering and right of way acquisition.

Sec. 662. Improved Emergency Response Access Point –NEW

Intent language that Department work with Graafschap Fire Department and Laketown Township to improve emergency access on US-31 in Allegan County.

Sec. 664. Use of Additional MTF Revenue –NEW

Directs that revenue in excess of revenue estimates be used to reinstate delayed projects.

Sec. 665. Prohibition on Land Purchase for Watervliet I-94 rest area –NEW

Indicates legislative intent that appropriated funds not be used for property acquisition related to new rest area.

Sec. 701. Intercity Bus Equipment Fund–Retained

Provides for separate accounting and carryforward authority for this fund.

Sec. 702. Rail Preservation Fund–Retained

Provides for separate accounting and carryforward authority for this fund; reference to State Transportation Preservation Act of 1976 (1976 PA 295).

Sec. 703. Rail Abandonment Notice –Retained

Requires Department to notify Legislature when railroad companies file for abandonment of lines.

Sec. 706. Detroit/Wayne County Port Authority–Retained

Requires report due by February 15 of each year.

Sec. 708. Intercity Bus Equipment Program–Retained

Requires annual lease of not less than $1,000.

Sec. 709. Intercity Bus Essential Corridor –Retained

Identifies essential bus corridors; prohibits operating subsidy to any entity competing with another public or private carrier over the same route.

Sec. 711. Seven-Day Rail Passenger Service (AMTRAK) – MODIFIED

Directs Department to negotiate with a rail carrier to provide seven-day Port Huron/Chicago and Grand Rapids/Chicago service. Adds directive that department work with rail carrier to identify ways to accommodate transport of bicycles by passengers.

Sec. 714. Local Transit Demand-Response Services–Retained

Requires that Department, in cooperation with local transit agencies, work to ensure that demand-response services are provided throughout Michigan.

Sec. 731. Intercity Bus Space Rental–Retained

Directs Department to charge transit agencies and intercity bus carriers the same rent when leasing similar space in state-owned intermodal facilities.

Sec. 734. Transit Agency Service Performance Measures –Retained

Directs Department to work to ensure that transit agencies meet certain service performance measures.

Sec. 740. Review of CTF Fund Balances–Retained

Requires report on unencumbered CTF balance by March 1 of each year.

Sec. 741. Ann Arbor and Northwest Michigan Railroad –MODIFIED

Requires report on progress made to improve rail track to support passenger trains at 59MPH..

Sec. 743. Use HEV Vehicles–Retained

Encourages the department to include hybrid electric vehicles in RFPs purchased through the department.

Sec. 745. Appropriation of CTF Debt Service –MODIFIED

Directs that $13.2 million appropriated for CTF debt service be transferred to bond proceeds account in accordance withIRS regulation. [Similar language was included in FY 2009-10 supplemental HB 5394.]

Sec. 801. State Aeronautics Fund–Retained

Requires that unexpended funds in the State Aeronautics Fund lapse back to the fund.

Sec. 901. Aeronautics Capital Program–Retained

Permits department to contract for airport improvement projects on behalf of local airport owners; local match requirements, requires local agencies to obtain authorization before submitting projects to federal agencies.

Sec. 902. Aeronautics Capital Program Status Report–Retained

Provides reporting requirement.

Sec. 903. Capital Outlay Carry Forward–Retained

Provides for carry forward authority in accordance with the Management and Budget Act.

Sec. 904. Capital Outlay Authorization/Lapse– Retained

Language on allocation of lump-sum appropriations.