COUNTY LOANS TO TOWNSHIPS                                                                      S.B. 729:

                                                                                  SUMMARY OF INTRODUCED BILL

                                                                                                         IN COMMITTEE

Senate Bill 729 (as introduced 2-2-16)

Sponsor:  Senator Wayne Schmidt

Committee:  Appropriations

Date Completed:  2-16-16

CONTENT

The bill would amend Public Act 156 of 1851, which defines powers and duties of county boards of commissioners, to authorize a county board of commissioners to loan funds to a township in the county for the purpose of funding a road construction project or providing matching funds for a joint project between the county and the township. Such a loan could not exceed a term of 10 years.

The bill would take effect 90 days after enactment.

MCL 46.11                                                                                                              

FISCAL IMPACT

The bill would have no fiscal impact on the State. 

The bill could result in lower costs for local governments, in the long term, with regard to road construction and maintenance. Allowing county boards to loan funds to townships for road construction projects or joint projects could result in the earlier completion of some projects. Since road repair costs can increase exponentially over time, and counties often rely on townships to participate in funding road projects, those additional costs could be avoided to the extent that 1) townships currently lack funding for projects that they would otherwise engage in, and 2) counties could provide loans to those townships.

                                                                                    Fiscal Analyst:  Glenn Steffens

This 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.