This week I attended the first of several meetings that the Senate Transportation Appropriations that mark the FY 2010 budget process.  As is tradition, the Michigan Department of Transportation (since they're the department that is responsible for this particular budget) got to testify first.  Leon Hank, MDOT's Chief Administrative Officer, gave the presentation.  He spoke both about the proposed budget and the Federal stimulus program.  Highlights of he presentation include:

Transportation FY 2010 Budget:

  • The budget is based on the assumption that overall transportation revenues will be down $156 million (4.6% from the previous year).  The gas tax is projected to be down 4.3%, diesel tax is project to be down 8.3% and vehicle registration fees are projected to be down 1.5.%
  • State federal aid road and bridge program will be decreased 23.84% (or $356.3 million overall).  Local federal aid road and bridge program will be decreased 19.65% or $61 million. MTF distribution to counties, cities, and villages will be decrease4.88% or$45.4 million.

 

American Recovery and Reinvestment Act of 2009 (Federal Stimulus):

  • Stimulus funds under will be under a very agressive timetable.
  • Stimulus funds do not have any matching requires (100% grants)
  • Michigan will receive $857 in highways funds.
    • This represents 3.18% of the total stimulus
    • $567 million will be given to the State
    • $254 will be allocated through the municipal planning organizations (MPO), the Rural Task Force, or the Small Urban program.
    • $25 million will be awarded through transportation enhancement grants
  • Transit systems will receive $135 million
    • This represents 1.95% of the total.
    • $102 million will be given to urban transit agencies
    • $22 million will be given to rural transit
    • $10 million will be award from the "density growth formula"

Requirements:

  • Projects must be federal aid eligible
  • 50% of these funds must be "obligated" within 120 days of MDOT receiving official word of Michigan's allocation (sometime in the first week of March).
  • The remaining 50% must be used with 1 year.
  • Funds not obligated will be swept back into a discretionary grant program.

Needless to say, if you aren't working with your local MPO to make sure your stimulus projects is ready and submitted to the TIP, you need to do so now!  Contact: Dave Worthams/Arnold Weinfeld.
 
 
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