LOCAL ROAD FUNDING H.B. 4848 (H-1): COMMITTEE SUMMARY
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House Bill 4848 (Substitute H-1 as passed by the House)
Sponsor: Representative Joel Sheltrown
House Committee: Transportation
Senate Committee: Transportation


Date Completed: 6-28-10

CONTENT The bill would amend the Michigan Transportation Fund (MTF) law to permit a county road commission to spend an additional 20% of primary road funds on the county local road system, if used to supplement funds from other sources. The bill also would delete provisions permitting local road system funds to be used on the primary road system.

Under the law, funds from the MTF are returned to each county according to a specific formula. After certain allocations, each county road commission must spend 75% of the remaining amount returned to the county for the preservation, construction, acquisition, and extension of the county primary road system.


Up to 30% of the amount designated for the county primary road system may be spent on the county local road system of that county.


The bill would permit up to an additional 20% per year of the amount designated for the county primary road system to be spent on the county local road system, only if used to supplement funds from other sources.


Currently, up to 15% per year of the amount designated for the county local road system may be used on the county primary road system, and up to an additional 15% per year may be used in case of an emergency or with the approval of the Department of Transportation.


The bill would delete those provisions.


MCL 247.662 Legislative Analyst: Curtis Walker

FISCAL IMPACT
The bill would potentially alter the distribution of county expenses on different types of roads. The bill would not affect State revenue or expenditures, or affect the total amount of revenue distributed to local road agencies, either individually or collectively. The bill would increase the share of funds distributed for use on county primary roads that may be diverted to fund expenditures on the county local road system.

Fiscal Analyst: David Zin

Analysis was prepared by nonpartisan Senate staff for use by the Senate in its deliberations and does not constitute an official statement of legislative intent. hb4848/0910