Summary and analysis

TRANSPORTATION

Summary of FY 2009-10 Enacted Appropriations

2009 PA 116 (Senate Bill 254)

Analyst: William E. Hamilton

	FY 2008-09 YTD	FY 2009-10	FY 2009-10	FY 2009-10	FY 2009-10	*Difference: Enacted* *From FY 2008-09 YTD*
	as of2/12/09	Executive	Senate	House	Enacted	*Amount*	%
IDG/IDT	$0	$0	$0	$0	$0	$0	--
Federal
ARRA	0	0	0	0	0	0	--
Non-ARRA	1,460,995,800	1,226,704,500	1,226,704,500	1,227,204,500	1,227,204,500	(233,791,300)	(16.0)
Local	71,624,200	56,073,400	56,073,400	56,073,400	56,073,400	(15,550,800)	(21.7)
Private	0	0	0	0	0	0	--
Restricted	2,079,609,200	1,985,343,000	1,961,843,000	1,973,383,000	1,973,770,100	(105,839,100)	(5.1)
GF/GP	0	0	0	0	0	0	--
Gross	$3,612,609,200	$3,268,120,900	$3,244,620,900	$3,256,660,900	$3,257,048,000	*($355,561,200)*	*(9.8)*
FTEs	3,014.3	3,014.3	3,014.3	3,014.3	3,014.3	0.0	0.0

Notes: (1) FY 2008-09 appropriation figures do not reflect the impact of executive order, supplemental, or transfer adjustments made after the release of the FY 2009-10 Executive Budget on February 12. (2) "ARRA" represents temporary funds received under federal American Recovery and Reinvestment Act.

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 budget is from constitutionally-restricted state revenue sources—primarily motor fuel taxes and vehicle registration taxes. These state revenues are 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. Approximately one-third of the budget is federal revenue. There is no state GF/GP revenue in this budget.

Major Budget Changes From FY 2008-09 YTD Appropriations	FY 2008-09 YTD (as of 2/12/09)	Enacted Change From YTD
*1. Debt Service* Appropriates $251.6 million, reflects anticipated debt service schedules.	Gross Federal Restricted	$192,003,600 22,783,300 169,220,300	$59,633,700 35,380,200 24,253,500
*2. Support Services Provided by Other State Departments* – PARTIAL VETO The appropriation unit "Collection, enforcement, and other agency support services" includes 24 separate interdepartmental grant (IDG) line items which fund services provided by nine other state departments. Increase in appropriation reflects economic increases of $923,600 net of other adjustments. Includes IDGs from the MTF for cost of collecting transportation taxes: $20 million to the Department of State, and $7.3 million to Department of Treasury. The MTFIDG to Treasury reflects the Governor's veto of boilerplate section 306(3) which had required an alternative study of costs associated with collection of motor fuel taxes; the veto reduced spending authority in the line by $100,000, the estimated cost of the study. The enacted budget includes a $1.1 million MTFIDG to MDEQ for permitting functions; the Executive had proposed returning this function back to the federal government.	Gross Restricted	$49,702,300 49,702,300	$752,500 752,500
*3. Executive Direction* Appropriation of $5.8 million includes funding for Unclassified salaries, Asset Management Council, and Office of Commission Audits; reflects economic increases of $61,500.	FTEs Gross Restricted	37.3 $5,742,300 5,742,300	0.0 $61,500 61,500
*4. Business Support* Appropriations unit includes line items for Business support, Economic development and enhancement, Property management, and Worker's compensation. Appropriates $17.6 million reflecting economic increases of $514,200; transfer of Civil service costs, $3,000; and internal cost allocation, ($62,300). Reflects shift of $25,400 (CTF) from Business support in order to increase Marine passenger funding.	FTEs Gross Restricted	57.0 $17,165,400 17,165,400	0.0 $429,500 429,500
*5. Information Technology* Appropriates $29.3 million reflecting economic adjustments, $222,900; administrative reductions, ($5,900); reduction in virtual storage costs, ($6,600); One-stop Portal development, $97,300; and Microsoft Office update, $509,300.	Gross Federal Restricted	$28,496,200 500,300 27,995,900	$817,000 10,500 806,500
*6. Finance, Contracts, and Support Services* Appropriates $25.1 million; reflecting economics, $504,600; position transfers, $82,100; andinternal cost allocation, ($214,900).	FTEs Gross Restricted	242.5 $24,686,500 24,686,500	1.0 $371,800 371,800
*7. Transportation Planning* Appropriates $36.6 million, reflecting economic increases of $542,300, and position transfers, ($82,100).	FTEs Gross Federal Restricted	177.0 $36,156,400 22,000,000 14,156,400	(1.0) $460,200 0 460,200
*8. Design and Engineering Services* Appropriates $114.2 million; reflects economic increases of $3.2 million, $612,600 increase for intelligent traffic systems, $2.5 million additional federal support for Safe Routes to Schools Program. Reduction in budgeted FTEs due to position transfers ($182,600).	FTEs Gross Federal Restricted	1,496.8 $108,028,500 18,912,600 89,115,900	(2.0) $6,173,000 4,617,200 1,555,800
*9. State Trunkline Maintenance* Appropriates $286.6 million in two separate appropriation line items; State trunkline operations; and Contract operations. Reflects economic increases of $1.6 million, and $182,600 related to positions transfers.	FTEs Gross Restricted	832.7 $284,728,200 284,728,200	2.0 $1,799,900 1,799,900
*10. State Trunkline Road* **and Bridge Construction –PARTIAL VETO** Appropriates $793.9 million for state trunkline capital construction and reconstruction program. Reflects decrease in estimated available state restricted revenue, and estimated federal aid. Reflects Governor's veto of boilerplate section 324 which earmarked $500,000 for the "Give 'em a brake" campaign. FY 2008-09 YTD figures do not include $635.4 million in federal stimulus (ARRA) funds appropriated in 2009 PA 3 (House Bill 4582), or $8.3 million ARRA funds appropriated in 2009 PA 122 (Senate Bill 95).	Gross Federal Local Restricted	$1,043,058,100 892,420,900 30,000,000 120,637,200	($248,139,300) (185,208,300) 0 (62,931,000)
*11. Local Federal Aid Road* *and Bridge Construction* Appropriates $248.8 million based on estimated federal revenue and Act 51 directive that 25% of most federal aid program funds be made available to local road agencies. *FY 2008-09 YTD figures do not include $211.8 million in federal stimulus (ARRA)funds appropriated in 2009 PA 3 (House Bill 4582).*	Gross Federal	$309,592,000 309,592,000	($60,841,000) (60,841,000)
*12. Grants to Local Programs* No change in this Act 51 earmark to local road agencies.	Gross Restricted	$33,000,000 33,000,000	$0 0
*13. Rail grade crossing* No change in this Act 51 earmark to local road agencies.	Gross Restricted	$3,000,000 3,000,000	$0 0
*14.* *Local* *Bridge* *Fund* Act 51 earmark; reflects anticipated reduction in gasoline tax revenue.	Gross Restricted	$28,336,800 28,336,800	($1,431,800) (1,431,800)
*15. MTF Distribution to Local Road Agencies* Appropriates $886.1 million MTF ($568.9 million to county road commissions, $317.2 millionto cities/villages)based on February 2009 revenue estimates and Act 51 formula; final distribution will be based on actualMTFrevenue, which may be more or less than appropriations.	Gross Restricted	$931,570,800 931,570,800	($45,425,400) (45,425,400)
*16.* *Blue* *Water* *Bridge* Appropriates $5.4 million – reflects economic increases.	FTEs Gross Restricted	41.0 $5,328,500 5,328,500	0.0 $72,700 72,700
*17. Transportation Economic Development (TEDF) Fund* Appropriation of $33.8 million reflects proposed transfer of $12.0 million in driver's license fee revenue to the state General Fund; the related reduction in TEDF revenue would be taken from Category A, (Target Industries). Reduction partially offset by reduction in TEDF debt service; includes $40,000 earmark forForest roads truck turnouts. *The FY 2008-09 YTD figure does not reflect Executive Order 2009-22 which also reduced funding for TEDF Category A by $12.0 million.*	Gross Restricted	$42,332,200 42,332,200	($11,960,000) (11,960,000)
*18. Aeronautics and Freight Services* Appropriates $11.2 million for three operating line items: Airport improvement services, Aviation services, and Freight and safety services, as well as the Aviation services grant program. Reflects economic increases, $200,400; and anticipated reduction in SAF revenue, ($310,300).	FTEs Gross Restricted	84.0 $11,340,300 11,340,300	0.0 ($109,900) (109,900)
*19. Public Transportation Services* Appropriates $5.5 million; reflects economic increases.	FTEs Gross Federal Restricted	46.0 $5,339,400 762,100 4,577,300	0.0 $116,000 0 116,000
*20. Bus Transit – Local Bus Operating Assistance* Appropriates $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
*21. Bus Transit – Non-Urban Operating/Capital* Recognizes anticipated increase in federal non-urban transit grants. *FY 2008-09 YTD figures do not include $21.9 million in federal stimulus (ARRA)funds appropriated in 2009 PA 3 (House Bill 4582).*	Gross Federal Local	$19,300,000 18,500,000 800,000	$2,500,000 2,500,000 0
*22. Freight Property Management* Appropriation same as current year.	Gross Restricted	$1,000,000 1,000,000	$0 0
*23.* *Detroit* *Wayne* *County* *Port* *Authority* Appropriates $468,200; reflects anticipated reduction in CTF revenue.	Gross Restricted	$500,000 500,000	($31,800) (31,800)
**24. Intercity – Intercity Services –PARTIAL VETO Appropriates $7.25 million in support of intercity bus transportation programs; reflects reduction in anticipated CTF revenue ($1.2 million), partially offset by $1.0 million increase related to anticipated sale of intercity buses for loan program. Reflects theGovernor's veto of Boilerplate section 729 which had earmarked $100,000 from the CTF for lost ridership support/marketing. FY 2008-09 YTD figures do not include $3.9 million in federal stimulus (ARRA) funds appropriated in 2009 PA 3 (House Bill 4582).**.	Gross Federal Local Restricted	$7,425,000 4,500,000 50,000 2,875,000	($275,000) 0 0 (275,000)
*25. Rail Passenger Service* Provides operating assistance for Port Huron/Chicago and Grand Rapids/Chicago rail service with state restricted funds; federal revenue supports capital assistance. Appropriates $8.667 million of which $5.667 million is from the CTF for the AMTRAK operating contract. The CTF appropriation is not sufficient to support a full-year AMTRAK operating contract. *The FY 2008-09 YTD figure does not reflects supplemental appropriation of $400,000 (CTF) made in 2009 PA 64 (HB 4310) which provided rail passenger service through September 30, 2009.*	Gross Federal Restricted	$12,700,000 5,800,000 6,900,000	($4,033,000) (2,800,000) (1,233,000)
*26. Freight Preservation and Development* Reflects reduction in anticipated CTF revenue.	Gross Federal Restricted	$5,092,900 100,000 4,992,900	($1,728,700) 0 (1,728,700)
*27. Rail Infrastructure Loan Program* Line item eliminated due to reduction in anticipated CTF revenue.	Gross Restricted	$300,000 300,000	($300,000) (300,000)
*28. Marine Passenger Service* Appropriates $400,000, same as current year.	Gross Restricted	$400,000 400,000	0 0
*29. Terminal Development* Appropriates $150,000; reflects reduction in anticipated CTF revenue.	Gross Restricted	$550,000 550,000	($400,000) (400,000)
*30. Specialized Services* Appropriates $7.2 million; reflects anticipated federal and local revenue, and anticipated reductions in CTF revenue. Line item supports transit programs for elderly and disabled citizens.	Gross Federal Local Restricted	$9,500,100 2,700,000 2,700,000 4,100,100	($2,252,000) (1,000,000) (1,000,000) (252,000)
*31. Municipal Credit Program* The $1.873 million appropriation is less than Act 51 earmark of not less than $2.0 million; reflects reduction in anticipated CTF revenue.	Gross Restricted	$2,000,000 2,000,000	($127,000) (127,000)
*32. Bus Capital* Provides matching funds for federal transit grants to local transit agencies; Gross appropriation of $38.2 million includes $5.2 million CTF funds to match federal grants. *FY 2008-09 YTD figures do not include $531,500 in federal stimulus (ARRA) funds appropriated in 2009 PA 122 (Senate Bill 95).*	Gross Federal Local Restricted	$40,803,000 26,400,000 5,000,000 9,403,000	($2,624,800) 1,600,000 0 (4,224,800)
*33. Van Pooling* Same as current year.	Gross Restricted	$195,000 195,000	$0 0
*34. Service Initiatives* Appropriates $1.05 million; reflects reduction in anticipated CTF revenue.	Gross Federal Local Restricted	$1,116,500 800,000 200,000 116,500	($66,500) 0 0 (66,500)
*35. Transportation to Work* Reflects estimated federal/local and state-restricted CTF revenue.	Gross Federal Local CTF	$9,244,000 2,200,000 2,200,000 4,844,000	($107,600) 100,000 100,000 (307,600)
*36. AERO Capital Projects* Provides funding for FY 2009-10 Aeronautics Capital program; reflects anticipated federal program funding. *FY 2008-09 YTD figures do not include $30.4 million in federal stimulus (ARRA) funds appropriated in 2009 PA 38 (House Bill 4308).*	Gross Federal Local Restricted	$167,491,700 133,024,600 30,674,200 3,792,900	($44,066,000) (28,149,900) (14,650,800) (1,265,300)
*37. State/Local Capital Facilities Projects* Provides funds for other capital outlay projects (salt storage facilities,TransportationServiceCenter, Institutional and Agency road program, other facility special maintenance projects). Only special maintenance would be funded in FY 2009-10 due to reduced STF revenue.	Gross Restricted	$9,132,000 9,132,000	($6,844,000) (6,844,000)
*38. Economics* The State Budget Office estimated additional funding needed to provide baseline service levels: $1.8 million increase to reflect salaries/wages, $1.2 million increase related to health insurance, and $3.5 million increase for retirement contributions. Projected workers compensation and building occupancy costs would decrease by $337,300 and $669,700 respectively.	Gross Restricted	N/A N/A N/A	$6,872,000 6,872,000

Major Budget Changes From FY 2008-09 YTD Appropriations

FY 2008-09 YTD

(as of 2/12/09)

Enacted Change

From YTD

1. Debt Service

Appropriates $251.6 million, reflects anticipated debt service schedules.

Gross

Federal

Restricted

$192,003,600

22,783,300

169,220,300

$59,633,700

35,380,200

24,253,500

2. Support Services Provided by Other State Departments – PARTIAL VETO

The appropriation unit "Collection, enforcement, and other agency support services" includes 24 separate interdepartmental grant (IDG) line items which fund services provided by nine other state departments. Increase in appropriation reflects economic increases of $923,600 net of other adjustments.

Includes IDGs from the MTF for cost of collecting transportation taxes: $20 million to the Department of State, and $7.3 million to Department of Treasury. The MTFIDG to Treasury reflects the Governor's veto of boilerplate section 306(3) which had required an alternative study of costs associated with collection of motor fuel taxes; the veto reduced spending authority in the line by $100,000, the estimated cost of the study.

The enacted budget includes a $1.1 million MTFIDG to MDEQ for permitting functions; the Executive had proposed returning this function back to the federal government.

Gross

Restricted

$49,702,300

49,702,300

$752,500

752,500

3. Executive Direction

Appropriation of $5.8 million includes funding for Unclassified salaries, Asset Management Council, and Office of Commission Audits; reflects economic increases of $61,500.

FTEs

Gross

Restricted

37.3

$5,742,300

5,742,300

0.0

$61,500

61,500

4. Business Support

Appropriations unit includes line items for Business support, Economic development and enhancement, Property management, and Worker's compensation. Appropriates $17.6 million reflecting economic increases of $514,200; transfer of Civil service costs, $3,000; and internal cost allocation, ($62,300). Reflects shift of $25,400 (CTF) from Business support in order to increase Marine passenger funding.

FTEs

Gross

Restricted

57.0

$17,165,400

17,165,400

0.0

$429,500

429,500

5. Information Technology

Appropriates $29.3 million reflecting economic adjustments, $222,900; administrative reductions, ($5,900); reduction in virtual storage costs, ($6,600); One-stop Portal development, $97,300; and Microsoft Office update, $509,300.

Gross

Federal

Restricted

$28,496,200

500,300

27,995,900

$817,000

10,500

806,500

6. Finance, Contracts, and Support Services

Appropriates $25.1 million; reflecting economics, $504,600; position transfers, $82,100; andinternal cost allocation, ($214,900).

FTEs

Gross

Restricted

242.5

$24,686,500

24,686,500

1.0

$371,800

371,800

7. Transportation Planning

Appropriates $36.6 million, reflecting economic increases of $542,300, and position transfers, ($82,100).

FTEs

Gross

Federal

Restricted

177.0

$36,156,400

22,000,000

14,156,400

(1.0)

$460,200

460,200

8. Design and Engineering Services

Appropriates $114.2 million; reflects economic increases of $3.2 million, $612,600 increase for intelligent traffic systems, $2.5 million additional federal support for Safe Routes to Schools Program. Reduction in budgeted FTEs due to position transfers ($182,600).

FTEs

Gross

Federal

Restricted

1,496.8

$108,028,500

18,912,600

89,115,900

(2.0)

$6,173,000

4,617,200

1,555,800

9. State Trunkline Maintenance

Appropriates $286.6 million in two separate appropriation line items; State trunkline operations; and Contract operations. Reflects economic increases of $1.6 million, and $182,600 related to positions transfers.

FTEs

Gross

Restricted

832.7

$284,728,200

284,728,200

2.0

$1,799,900

1,799,900

10. State Trunkline Road and Bridge Construction –PARTIAL VETO

Appropriates $793.9 million for state trunkline capital construction and reconstruction program. Reflects decrease in estimated available state restricted revenue, and estimated federal aid. Reflects Governor's veto of boilerplate section 324 which earmarked $500,000 for the "Give 'em a brake" campaign.

FY 2008-09 YTD figures do not include $635.4 million in federal stimulus (ARRA) funds appropriated in 2009 PA 3 (House Bill 4582), or $8.3 million ARRA funds appropriated in 2009 PA 122 (Senate Bill 95).

Gross

Federal

Local

Restricted

$1,043,058,100

892,420,900

30,000,000

120,637,200

($248,139,300)

(185,208,300)

(62,931,000)

11. Local Federal Aid Road and Bridge Construction

Appropriates $248.8 million based on estimated federal revenue and Act 51 directive that 25% of most federal aid program funds be made available to local road agencies.

FY 2008-09 YTD figures do not include $211.8 million in federal stimulus (ARRA)funds appropriated in 2009 PA 3 (House Bill 4582).

Gross

Federal

$309,592,000

309,592,000

($60,841,000)

(60,841,000)

12. Grants to Local Programs

No change in this Act 51 earmark to local road agencies.

Gross

Restricted

$33,000,000

33,000,000

13. Rail grade crossing

No change in this Act 51 earmark to local road agencies.

Gross

Restricted

$3,000,000

3,000,000

14. Local Bridge Fund

Act 51 earmark; reflects anticipated reduction in gasoline tax revenue.

Gross

Restricted

$28,336,800

28,336,800

($1,431,800)

(1,431,800)

15. MTF Distribution to Local Road Agencies

Appropriates $886.1 million MTF ($568.9 million to county road commissions, $317.2 millionto cities/villages)based on February
2009 revenue estimates and Act 51 formula; final distribution will be based on actualMTFrevenue, which may be more or less than appropriations.

Gross

Restricted

$931,570,800

931,570,800

($45,425,400)

(45,425,400)

16. Blue Water Bridge

Appropriates $5.4 million – reflects economic increases.

FTEs

Gross

Restricted

41.0

$5,328,500

5,328,500

0.0

$72,700

72,700

17. Transportation Economic Development (TEDF) Fund

Appropriation of $33.8 million reflects proposed transfer of $12.0 million in driver's license fee revenue to the state General Fund; the related reduction in TEDF revenue would be taken from Category A, (Target Industries). Reduction partially offset by reduction in TEDF debt service; includes $40,000 earmark forForest roads truck turnouts.

The FY 2008-09 YTD figure does not reflect Executive Order 2009-22 which also reduced funding for TEDF Category A by $12.0 million.

Gross

Restricted

$42,332,200

42,332,200

($11,960,000)

(11,960,000)

18. Aeronautics and Freight Services

Appropriates $11.2 million for three operating line items: Airport improvement services, Aviation services, and Freight and safety services, as well as the Aviation services grant program. Reflects economic increases, $200,400; and anticipated reduction in SAF revenue, ($310,300).

FTEs

Gross

Restricted

84.0

$11,340,300

11,340,300

0.0

($109,900)

(109,900)

19. Public Transportation Services

Appropriates $5.5 million; reflects economic increases.

FTEs

Gross

Federal

Restricted

46.0

$5,339,400

762,100

4,577,300

0.0

$116,000

116,000

20. Bus Transit – Local Bus Operating Assistance

Appropriates $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

21. Bus Transit – Non-Urban Operating/Capital

Recognizes anticipated increase in federal non-urban transit grants.

FY 2008-09 YTD figures do not include $21.9 million in federal stimulus (ARRA)funds appropriated in 2009 PA 3 (House Bill 4582).

Gross

Federal

Local

$19,300,000

18,500,000

800,000

$2,500,000

2,500,000

22. Freight Property Management

Appropriation same as current year.

Gross

Restricted

$1,000,000

1,000,000

23. Detroit Wayne County Port Authority

Appropriates $468,200; reflects anticipated reduction in CTF revenue.

Gross

Restricted

$500,000

500,000

($31,800)

(31,800)

24. Intercity – Intercity Services –PARTIAL VETO

Appropriates $7.25 million in support of intercity bus transportation programs; reflects reduction in anticipated CTF revenue ($1.2 million), partially offset by $1.0 million increase related to anticipated sale of intercity buses for loan program. Reflects theGovernor's veto of Boilerplate section 729 which had earmarked $100,000 from the CTF for lost ridership support/marketing.

FY 2008-09 YTD figures do not include $3.9 million in federal stimulus (ARRA) funds appropriated in 2009 PA 3 (House Bill 4582)..

Gross

Federal

Local

Restricted

$7,425,000

4,500,000

50,000

2,875,000

($275,000)

(275,000)

25. Rail Passenger Service

Provides operating assistance for Port Huron/Chicago and Grand Rapids/Chicago rail service with state restricted funds; federal revenue supports capital assistance.

Appropriates $8.667 million of which $5.667 million is from the CTF for the AMTRAK operating contract. The CTF appropriation is not sufficient to support a full-year AMTRAK operating contract.

The FY 2008-09 YTD figure does not reflects supplemental appropriation of $400,000 (CTF) made in 2009 PA 64 (HB 4310) which provided rail passenger service through September 30, 2009.

Gross

Federal

Restricted

$12,700,000

5,800,000

6,900,000

($4,033,000)

(2,800,000)

(1,233,000)

26. Freight Preservation and Development

Reflects reduction in anticipated CTF revenue.

Gross

Federal

Restricted

$5,092,900

100,000

4,992,900

($1,728,700)

(1,728,700)

27. Rail Infrastructure Loan Program

Line item eliminated due to reduction in anticipated CTF revenue.

Gross

Restricted

$300,000

300,000

($300,000)

(300,000)

28. Marine Passenger Service

Appropriates $400,000, same as current year.

Gross

Restricted

$400,000

400,000

29. Terminal Development

Appropriates $150,000; reflects reduction in anticipated CTF revenue.

Gross

Restricted

$550,000

550,000

($400,000)

(400,000)

30. Specialized Services

Appropriates $7.2 million; reflects anticipated federal and local revenue, and anticipated reductions in CTF revenue. Line item supports transit programs for elderly and disabled citizens.

Gross

Federal

Local

Restricted

$9,500,100

2,700,000

4,100,100

($2,252,000)

(1,000,000)

(252,000)

31. Municipal Credit Program

The $1.873 million appropriation is less than Act 51 earmark of not less than $2.0 million; reflects reduction in anticipated CTF revenue.

Gross

Restricted

$2,000,000

2,000,000

($127,000)

(127,000)

32. Bus Capital

Provides matching funds for federal transit grants to local transit agencies; Gross appropriation of $38.2 million includes $5.2 million CTF funds to match federal grants.

FY 2008-09 YTD figures do not include $531,500 in federal stimulus (ARRA) funds appropriated in 2009 PA 122 (Senate Bill 95).

Gross

Federal

Local

Restricted

$40,803,000

26,400,000

5,000,000

9,403,000

($2,624,800)

1,600,000

(4,224,800)

33. Van Pooling

Same as current year.

Gross

Restricted

$195,000

195,000

34. Service Initiatives

Appropriates $1.05 million; reflects reduction in anticipated CTF revenue.

Gross

Federal

Local

Restricted

$1,116,500

800,000

200,000

116,500

($66,500)

(66,500)

35. Transportation to Work

Reflects estimated federal/local and state-restricted CTF revenue.

Gross

Federal

Local

CTF

$9,244,000

2,200,000

4,844,000

($107,600)

100,000

(307,600)

36. AERO Capital Projects

Provides funding for FY 2009-10 Aeronautics Capital program; reflects anticipated federal program funding.

FY 2008-09 YTD figures do not include $30.4 million in federal stimulus (ARRA) funds appropriated in 2009 PA 38 (House Bill 4308).

Gross

Federal

Local

Restricted

$167,491,700

133,024,600

30,674,200

3,792,900

($44,066,000)

(28,149,900)

(14,650,800)

(1,265,300)

37. State/Local Capital Facilities Projects

Provides funds for other capital outlay projects (salt storage facilities,TransportationServiceCenter, Institutional and Agency road program, other facility special maintenance projects). Only special maintenance would be funded in FY 2009-10 due to reduced STF revenue.

Gross

Restricted

$9,132,000

9,132,000

($6,844,000)

(6,844,000)

38. Economics

The State Budget Office estimated additional funding needed to provide baseline service levels: $1.8 million increase to reflect salaries/wages, $1.2 million increase related to health insurance, and $3.5 million increase for retirement contributions. Projected workers compensation and building occupancy costs would decrease by $337,300 and $669,700 respectively.

Gross

Restricted

N/A

N/A

$6,872,000

6,872,000

Major Boilerplate Changes From FY 2008-09
*Sec. 265. Transparency* – NEW Adds new language requiring internet reporting of expenditures – limits cost to $10,000.
*Sec. 306. Use of Transportation Funds by Other State Agencies/Biennial Audit* - PARTIAL VETO Sets guidelines for use of transportation funds by other state agencies; requires report. Provides for biennial audit of use of transportation funds by other state departments due 9 months after state CAFR is issued. Governor vetoed subsection 3 which required the State Treasurer to identify actual cost of work performed by the Department of Treasury for state-restricted transportation funds. The cost of the study was estimated to be $100,000.
Sec. 309. Administrative Costs – REVISED Requires Department to "continue its efforts" to reduce administrative costs.
*Sec. 324. Construction Zone Traffic Law Enforcement* – VETOED Earmark of $500,000 for construction zone traffic enforcement and “Give ‘em a brake campaign” vetoed by Governor.
Sec. 358. FTE Report– NEW New bi-monthly report on FTEs.
Sec. 361. Bureau of Multi-Modal Transportation Services– DELETED Requires Department to report on any change in bureau services or functions as approved by the State Transportation Commission.
Sec. 384. Detroit River International Crossing (DRIC)– REVISED The section was revised to read as follows: Section 384 (1) The department may continue with preliminary legal, financial, traffic and revenue study, permitting, engineering, and other ancillary work for the Detroit River International Crossing (DRIC) so that it can solicit from the private sector, requests for proposals for public-private partnerships to construct the bridge, plaza, and related infrastructure. The department shall submit proposals to the legislature byMay 1, 2010. Those activities associated with the DRIC project shall not bind the state in any way to construction. (2) The department shall submit an investment grade traffic study to the legislature byMay 1, 2010 from a reputable traffic company with appropriate experience intended to provide a detailed traffic projection for the ensuing 10 years, taking into account projected infrastructure modifications, expansions and improvements announced. (3) The department shall not expend more than $2.5 million from state transportation revenue sources for activities enumerated in this section. (4) It is the intent of the legislature to fully adopt or reject authorizing legislation by the full legislative bodies byJune 1, 2010 to: · Construct a new international crossing jointly and in agreement withCanada · Create an authorized tolling authority; and · Create a public private partnership.
Sec. 394. Revisit Act 51 Distribution Formula– REVISED Directs department to study formula for distribution of transportation revenue; report date March 1, 2010.
Sec. 398. Street Railway Appropriation– NEW Provides for the appropriation of $0 to a street railway pursuant to section 10e(22) of 1951 PA 51.
Sec. 399. Complete Streets – NEW Indicates legislative intent that department and local road agencies to adopt complete streets policies; directs the department to provide assistance to local agencies.
Sec. 711. Seven-Day Rail Passenger Service (AMTRAK)– REVISED Directs Department to negotiate with a rail carrier to provide seven-day Port Huron/Chicago and Grand Rapids/Chicago service. Section revised to eliminate contract ceiling.
*Sec. 729. Intercity Bus Marketing* – VETOED Earmarks $100,000 from Intercity Services line item for marketing.
Sec. 730. Intercity Bus Equipment Sales– DELETED Directs Department to sell state-owned intercity bus equipment within six months of lease termination and to credit proceeds to Intercity Bus Equipment Loan Fund.
Sec. 736. Intercity Bus/Rail Coordination– DELETED Directs Department to work with intercity bus and rail passenger carriers to coordinate services.
*Sec. 741.* *Ann Arbor* *and* *Northwest Michigan* *Railroad* – REVISED Requires report on progress made to improve rail track to support passenger trains at 59MPH. Adopts new reporting date ofMarch 1, 2010.
Sec. 743. Use HEV Vehicles– NEW Encourages the department to include hybrid electric vehicles in RFPs purchased through the department.
Sec. 744. Mobility Manager– NEW Encourages local transit agencies to hire mobility manager to coordinate transportation services.

Major Boilerplate Changes From FY 2008-09

Sec. 265. Transparency – NEW

Adds new language requiring internet reporting of expenditures – limits cost to $10,000.

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

Sets guidelines for use of transportation funds by other state agencies; requires report. Provides for biennial audit of use of transportation funds by other state departments due 9 months after state CAFR is issued. Governor vetoed subsection 3 which required the State Treasurer to identify actual cost of work performed by the Department of Treasury for state-restricted transportation funds. The cost of the study was estimated to be $100,000.

Sec. 309. Administrative Costs – REVISED

Requires Department to "continue its efforts" to reduce administrative costs.

Sec. 324. Construction Zone Traffic Law Enforcement – VETOED

Earmark of $500,000 for construction zone traffic enforcement and “Give ‘em a brake campaign” vetoed by Governor.

Sec. 358. FTE Report– NEW

New bi-monthly report on FTEs.

Sec. 361. Bureau of Multi-Modal Transportation Services– DELETED

Requires Department to report on any change in bureau services or functions as approved by the State Transportation Commission.

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

The section was revised to read as follows:

Section 384 (1) The department may continue with preliminary legal, financial, traffic and revenue study, permitting, engineering, and other ancillary work for the Detroit River International Crossing (DRIC) so that it can solicit from the private sector, requests for proposals for public-private partnerships to construct the bridge, plaza, and related infrastructure. The department shall submit proposals to the legislature byMay 1, 2010. Those activities associated with the DRIC project shall not bind the state in any way to construction.

(2) The department shall submit an investment grade traffic study to the legislature byMay 1, 2010 from a reputable traffic company with appropriate experience intended to provide a detailed traffic projection for the ensuing 10 years, taking into account projected infrastructure modifications, expansions and improvements announced.

(3) The department shall not expend more than $2.5 million from state transportation revenue sources for activities enumerated in this section.

(4) It is the intent of the legislature to fully adopt or reject authorizing legislation by the full legislative bodies byJune 1, 2010 to:

· Construct a new international crossing jointly and in agreement withCanada

· Create an authorized tolling authority; and

· Create a public private partnership.

Sec. 394. Revisit Act 51 Distribution Formula– REVISED

Directs department to study formula for distribution of transportation revenue; report date March 1, 2010.

Sec. 398. Street Railway Appropriation– NEW

Provides for the appropriation of $0 to a street railway pursuant to section 10e(22) of 1951 PA 51.

Sec. 399. Complete Streets – NEW

Indicates legislative intent that department and local road agencies to adopt complete streets policies; directs the department to provide assistance to local agencies.

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

Directs Department to negotiate with a rail carrier to provide seven-day Port Huron/Chicago and Grand Rapids/Chicago service. Section revised to eliminate contract ceiling.

Sec. 729. Intercity Bus Marketing – VETOED

Earmarks $100,000 from Intercity Services line item for marketing.

Sec. 730. Intercity Bus Equipment Sales– DELETED

Directs Department to sell state-owned intercity bus equipment within six months of lease termination and to credit proceeds to Intercity Bus Equipment Loan Fund.

Sec. 736. Intercity Bus/Rail Coordination– DELETED

Directs Department to work with intercity bus and rail passenger carriers to coordinate services.

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

Requires report on progress made to improve rail track to support passenger trains at 59MPH. Adopts new reporting date ofMarch 1, 2010.

Sec. 743. Use HEV Vehicles– NEW

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

Sec. 744. Mobility Manager– NEW

Encourages local transit agencies to hire mobility manager to coordinate transportation services.