FY 2010-11 TRANSPORTATION BUDGET H.B. 5889 (CR-1): CONFERENCE REPORT


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Amount Over/(Under) GF/GP Target: $ 0
FY 2009-10 Year-to-Date Gross Appropriation $3,361,611,100
Changes from FY 2009-10 Year-to-Date:
  Items Included by the Senate and House
1. Debt Service. Reduced funding for debt service payments $4,824,300 and redirected $12,331,400 in Federal revenue no longer needed for debt service to road/bridge programs. 7,507,100
2. State Restricted Revenue. Road and bridge programs reduced to reflect anticipated revenue: State Trunkline Roads ($46,598,600), County Road Commissions ($17,584,700), Cities/Villages ($9,804,200), Local Bridges ($105,200), Other ($4,444,300). (78,537,000)
3. Lost Federal Funding. Federal aid lowered due to insufficient match from State funds: $575.0m reduction offset by $100.0m in additional match made possible by $20.0m in STF reductions from other programs (including $12,786,300 from highway maintenance) that moved to road and bridge programs. (475,000,000)
4. Other Revenue-based Adjustments. Expenditures adjusted to reflect anticipated revenue, including $2,932,500 increase to reflect statutory floors established in Public Act 51, $2,222,900 in Federal funding increases for various programs, & $98,424,400 in Federal/local reductions (including ARRA exhaustion). (101,513,800)
Conference Agreement on Items of Difference
5. Economic Adjustments. Standard economic increases, none were funded through the General Fund. Conference shifted STF funding to increase Federal match, reflecting eliminated increases for NEREs. 17,551,300
6. Maximize Federal Matching Revenue. To utilize available Federal revenue, House used $84.0m in General Fund, while Senate provided various reductions to shift $84.0m into road & bridge program. Conference adopted different mix of reductions and shifts: $12.0m in current TEDF revenue, $6.0m in additional STF reductions, $2.6m in diverted capital outlay, & $2.0m in eliminating wage increases to non-represented employees funded under the STF. $10.3m in diverted prior year capital outlay authorizations, $40.0m in short-term borrowing & $11.0m in eligible toll credits are not appropriated. 491,589,400
7. Capital Outlay & Related. Gov./Senate/House increased payments for special maintenance & salt/sand storage facility replacement plus $11.5m in new funding for replacement facilities associated with Blue Water Bridge expansion. Increases were offset by reductions in miscellaneous airport improvement projects. Conference agreed to forego $2.6m in projects and divert funds to maximize Federal road & bridge revenue. 10,423,800
8. Other Changes. Gov./Senate/House restored funding for Give 'Em a Brake safety campaign & intercity bus marketing ($600,000, see boilerplate section); Amtrak funding increases ($467,000); & technical reallocations of costs/savings (-$1,090,300). Senate split maintenance item to allocate both Senate's & Gov./House reductions between State & contract operations. Conference eliminated the Senate reductions and the split. (23,300)
9. Transportation Economic Development Fund. Gov./Senate/House provided $1.0m in matching funds to fulfill a statutory requirement so a nonprofit street railway could receive Federal funding. The matching funds would require additional legislation but would come from existing funding. Conference created a $100 line-item placeholder for transit-oriented development projects, replacing boilerplate. 100
10. Grants to Other Departments. Gov./Senate adjusted funding for grants to other departments, including accounting for DIT/DMB merger, elimination of HAL, & MDOT becoming an accounting service center for Dept. of Agriculture. House kept FY 08-09 grant levels. Conference adopted Gov./Senate. 2,360,700
11. 3% Budget Reduction. Conference removed Senate reduction on line items with FTEs. 0
Total Changes ($125,641,700)
  FY 2010-11 Conference Report Gross Appropriation $3,235,969,400
FY 2010-11 TRANSPORTATION BUDGET BOILERPLATE HIGHLIGHTS

Changes from FY 2009-10 Year to Date:
  Items Included by the Senate and House
1. Public Passenger Transportation Properties. Added language to allow revenue to pay costs to improve property, rather than just maintain property, as under current law. (Sec. 305)
2. Rest Area Maintenance Signs. Gov. deleted language requiring posting of signs identifying responsible parties. The Senate and House restored the language. (Sec. 319)
3. NEW -- IRS Debt Service Refinancing. Restricted funds from 2009 CTF refunding bonds to reflect IRS rules. (Sec. 745)
Conference Agreement on Items of Difference
4. Reporting Requirements. Gov. deleted reporting requirements from many sections, including: privatization efforts (Sec. 207), policy changes in implementing legislation (Sec. 263), continuous improvement efforts (Sec. 264), local road funding by legislative district (Sec. 303), compliance with contract specifications (Sec. 308), internal audit reports (Sec. 314), women- & minority-owned businesses (Sec 334), FTE positions (Sec. 358), electronic newsletters (Sec. 374), select deferred projects (Sec. 376), State-owned aircraft usage (Sec. 383), funding distribution formulas (Sec. 394), performance & construction warranties (Sec. 601), manufactured pipes for drainage (Sec. 602), the Ann Arbor & NW Michigan RR (Sec. 741), & airport capital outlay projects (Sec. 902). Gov. also deleted language requiring notification of RR line abandonment (Sec. 703) & imposed new reporting requirements on a nonprofit street railway (Sec. 398). Senate restored deleted reporting requirements. House restored all but Secs. 263, 264, 376, 394 & 741. Conference restored all but Sec. 264.
5. Administration Operations. Gov. deleted language regarding guidelines for records retention, disciplining employees for communicating with the legislature, rules with a disproportionate impact on small business, posting department expenditure information on the web, & imposing a hiring freeze. Senate restored the language (Secs. 205, 211, 261, 263, & 266), while House restored all but Sec. 263. Conference followed Senate, but incorporated Sec. 358 reporting language into Sec. 266.
6. Travel Restrictions. Gov. deleted language allowing exceptions to the guidelines on out-of-State travel as well as reporting of any exceptions. Also deleted sections regarding travel for professional development. Senate restored the language (Secs. 260, 265), while House only restored Sec. 260. Conference followed House.
7. Restored Vetoes. Gov./House/Senate restored funding for "Give 'Em a Brake" Program & marketing of intercity bus services but deleted boilerplate sections regarding the programs. Senate restored language for "Give 'Em a Brake" Program. (Secs. 324, 729) Conference did not restore the language.
8. Legislative Intent. Gov. deleted a number of sections specifying legislative intent, especially regarding construction or road operations (Secs. 395, 399, 607, 610, 612, 615, 654, 655, 656, 658, 661, 737, 743, & 744). Senate restored Secs. 395, 612, 615, 654, 656, 658, 661, & added 662, 663 & 664. House restored Secs. 607, 610, 612, 615, 654, 743 & added 399 & 604. Conference added all restored sections except 399 and 663, kept 604, and added a new 399 and 665.
9. Detroit River International Crossing (DRIC). Gov./House did not include. Senate replaced language with reporting requirements regarding any activities & prohibiting expenditures unless enabling legislation for DRIC is enacted. (Sec. 384) Conference modified reporting requirements, prohibited new contracts and authorized $750,000 for existing contracts.
10. Transportation Economic Development Fund. House/Senate used a placeholder to provide different levels of matching funds for transit-oriented development projects. (Sec. 398) Conference converted to a line item & added a new Sec. 399.
11. Changes in Operations. Gov. deleted language regarding the prompt payment of contractors & subcontractors (Sec. 353), the promotion of best practices (Sec. 393), requiring the use of traffic congestion as a criteria in the 5-year plan (Sec. 603), an earmark of $40,000 for two additional truck inspection stations on forest roads (Sec. 608), use of historical data on pavement projects (Sec. 659), promotion of using recycled materials in projects (Sec. 660), designation of essential bus corridors (Sec. 709), rates charges on State-owned intermodal facilities (Sec. 731), & protocols for public transit agencies (Sec. 734). Senate restored the language. House restored all, but modified Sec. 709. Conference followed Senate.
12. Matching Funds. Gov. deleted sections on using certain funds as matching funds for FTA bus acquisition (Sec. 721) & reverse commute grants (Sec. 722). Senate restored Section 721, House restored 722. Conference restored no sections.
13. NEW - Complete Streets. House added Secs. 321, 322 & 324 with language concerning complete street policies. Conference kept Sec. 321, and modified Sec. 322 to require the Department provide assistance if requested by universities.
14. NEW - Multi-modal Planning Expertise. House added Sec. 323 to require inclusion of staff with multi-modal expertise in certain project development. Conference did not include.
15. NEW - Regional Transit Authority Start-up Funding. House earmarked $100 for funding. Conference did not include.
16. NEW - Privately Generated Toll Credits. Conference added Sec. 385 to prohibit toll credits generated by a private tolled bridge from funding any international bridge within 5 miles of the private tolled bridge.

Date Completed: 9-28-10 Fiscal Analyst: David Zin ?? ?? ?? ?? Bill Analysis @ http://www.senate.michigan.gov/sfa This analysis was prepared by nonpartisan Senate staff for use by the Senate in its deliberations. HItrn_cs.doc