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<title>HB4440 - Summary As Introduced (4/14/2015)</title>


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<p><b>TRANSPORTATION ECONOMIC DEVELOPMENT </b></p>

<p><b>FUND – FUNDING SHIFT TO STATE TRUNKLINE FUND</b></p>



<p style='margin-left:9.0pt;text-indent:-9.0pt'><b><span style='font-size:11.5pt'>House Bill <a name="BillNumber"><span style='color:black'>4440</span>
as introduced</a></span></b></p>

<p style='margin-left:9.0pt;text-indent:-9.0pt'><b><span style='font-size:11.5pt'>Sponsor:  Rep. <a name="Sponsor">Edward J. Canfield</a></span></b></p>

<p style='margin-left:9.0pt;text-indent:-9.0pt'><b><span style='font-size:11.5pt'>Committee:  <a name="Committee">Appropriations</a></span></b></p>

<p style='margin-left:9.0pt;text-indent:-9.0pt'><b><span style='font-size:11.5pt'>Complete to <a name="DateToFloor">4-14-15</a></span></b></p>



<p style='margin-left:.5in;text-align:justify;text-indent:-.5in'><b><i><span style='font-size:11.5pt'>BRIEF SUMMARY:</span></i></b><a name="StartText"></a><span style='font-size:11.5pt'>    House Bill 4440 would amend Section 11 of 1987 PA
231 (MCL 247.911), the act that created and governs the Transportation Economic
Development Fund (TEDF), to appropriate $12.0 million from the TEDF to the
State Trunkline Fund (STF) &quot;for the purposes of matching available
federal-aid highway funds.&quot;  The bill would make the appropriation for the
fiscal year ending September 30, 2016, only.  The reduction in funding for the
TEDF would be taken from the TEDF Targeted Industries program (&quot;Category A&quot;).</span></p>



<p style='margin-left:.5in;text-align:justify;text-indent:-.5in'><b><i><span style='font-size:11.5pt'>FISCAL IMPACT:      </span></i></b><span style='font-size:11.5pt'>The $12.0 million redirection of TEDF revenue proposed
in House Bill 4440 would have no impact on total state revenue; the bill would simply
shift revenue from one state-restricted transportation fund to another
state-restricted transportation fund.  This shift of revenue from TEDF to the
STF is intended to ensure that the Michigan Department of Transportation (MDOT)
is able to match all available federal-aid highway funds.  Similar shifts from
the TEDF to the STF for the purpose of matching federal-aid highway funds were
made in previous fiscal years, (FYs 2010-11, 2011-12, 2012-13, and 2013-14).  This
redirection is not made in the current (2014-15) fiscal year.</span></p>



<p style='margin-left:.5in;text-align:justify'><span style='font-size:11.5pt'>The $12.0 million redirection from the TEDF to the STF
is assumed in the Governor's FY 2015-16 transportation budget proposal; the State
trunkline road and bridge construction line item reflects the addition revenue,
and the TEDF/Target industries program reflects a corresponding decrease.  The
appropriation for Targeted Industries in the current (2014-15) fiscal year is
$18.8 million.  Primarily because of the proposed $12.0 million fund shift, the
proposed FY 2015-16 appropriation for TEDF/Targeted Industries would be only $7.4
million.</span></p>



<p style='margin-left:.5in;text-align:justify;text-indent:-.5in'><b><i><span style='font-size:11.5pt'>BACKGROUND INFORMATION:     </span></i></b><span style='font-size:11.5pt'> The TEDF is a state-restricted transportation fund
created in 1987 to help fund highway, road, and street improvements related to
either a specific type of economic activity or a specific type of road system. 
There are five TEDF categorical programs.  Target Industries is a TEDF program dedicated
to capital road improvements related to economic development projects that
create/retain permanent jobs in seven industries:  agriculture and food
processing, tourism, forestry, high technology research, mining, manufacturing,
and office centers of not less than 50,000 square feet.  Grants are
competitively evaluated and may be awarded to any eligible road agency (MDOT,
county road commissions, cities, or villages).</span></p>



<p style='margin-left:.5in;text-align:justify'><span style='font-size:11.5pt'>The TEDF/Target Industries program is administered
jointly by MDOT's Office of Economic Development and Enhancement and the
Michigan Economic Development Corporation (MEDC).</span></p>



<p style='margin-right:-4.5pt;text-align:justify'><span style='font-size:11.5pt'>                                                                                                 Fiscal
Analyst:   William E. Hamilton</span></p>

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<p style='text-align:justify'><span style='font-size:10.0pt;
font-family:"Arial","sans-serif"'>&#9632;</span><span style='font-size:10.0pt'>
This analysis was prepared by nonpartisan House Fiscal Agency staff for use by House
members in their deliberations, and does not constitute an official statement
of legislative intent.</span></p>

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