The full Senate Appropriations committee met this afternoon and reported the Senate's versions of the General Government and Transportation budgets, mere hours after their subcommittees had reported their recommendations to the full committee. The Senate committee's action today is the result of a desire by Senate leadership to have their work on all of the departmental budgets finished around the time of the state's May Revenue Estimating Conference and to be in a position to begin work in conference committees on each of the budgets as soon as possible. The committee ended up reporting four different budgets this afternoon, including these two which were reported on party line votes.
General Government budget – as Arnold relayed in his post from earlier today, the funding levels for revenue sharing were cut based upon the subcommittee's recommendation, as much as $54 million from the current year's combined Constitutional and Statutory funding levels. Sen. Deb Cherry (Flint), offered an amendment to restore the proposed cuts to current year levels, yet that amendment was defeated. The bill now moves to the Senate floor with this cut included.
MDOT budget – Sen. Bill Hardiman (Kentwood) produced a budget this morning that covered the $84 million shortfall of federal match through fund shifts from other lines within the department. The main shifts occurred through maintaining the current year cut in TEDF category A of $12 million, sweeping $15 million from TEDF carryforward balances, $40 million from MDOT highway maintenance spending (14.5% cut), and a $5.6 million reduction within Comprehensive Transportation Fund lines, but not from Bus Capital or Bus Operations. These shifts would allow the department to match nearly $500 million in federal gas tax revenue allocated to Michigan, but do nothing to solve the long-term funding problems in transportation and none of this federal money is designated for local road agencies, only for MDOT trunkline roads. Funding for cities and villages through PA51 was maintained at the Governor’s Recommended level (about a 3% reduction based upon actual revenue collections). The committee did adopt three amendments requested by the League; ensuring local road agency participation in an MDOT study of alternative funding distribution formulas, placeholder language to allow for continued discussion of state support for high-speed rail and local commuter or light rail projects, and intent langauge that the restoration of the 250 projects delayed recently by the State Transportation Commission is first priority if the department is able to match all available federal transportation funds.
Both of these bill now head to the Senate floor where full Senate action is expected next week.
Chris Hackbarth is the transportation policy advisor for the Michigan Municipal League. Chris can be reached at 517-908-0303, or by email at chackbarth@mml.org.
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