MTF FUNDS FOR CITY AND VILLAGE SIDEWALKS

House Bill 4555 (Substitute H-2)

Sponsor:  Rep. Tom Pearce

Committee:  Transportation

Complete to 6-9-05

A SUMMARY OF HOUSE BILL 4555 AS REPORTED FROM COMMITTEE 5-31-05

Public Act 51 specifies that of the funds allocated from the Michigan Transportation Fund (MTF) to the state trunkline fund and to the counties, cities, and villages, at least one percent is to be expended for "nonmotorized transportation services and facilities."  House Bill 4555 would amend the act  to allow the addition or preservation of a sidewalk in a city or village to be considered a "qualified nonmotorized facility."

Currently, that term applies to "an improvement in a road, street, or highway which facilitates nonmotorized transportation by the paving of unpaved road surfaces and shoulders, widening of lanes, or any other appropriate measure."  The bill would strike out "surfaces " (leaving just the references to "shoulders").

The bill also would amend existing language to specify that the one percent minimum would apply to the "improvement and preservation of nonmotorized transportation services and facilities."  (The underlined portion would be newly added.)  The one percent minimum is not an annual requirement for units of government but must be met as an average "over a reasonable period of years . . . not to exceed 10."

MCL 247.660k

FISCAL IMPACT:

The current 1 percent MTF set-aside for non-motorized transportation equates to approximately $17.5 million.  The bill would have no direct fiscal impact on state or local government, except to the extent that it would allow cities and villages to use MTF funds for sidewalk improvements that would otherwise have to be paid for using other city or village fund sources.

POSITIONS:

The Department of Transportation indicated support for the bill as amended (5-31-05)

The County Road Association of Michigan indicated support for the bill.  (5-31-05)

Michigan Municipal League indicated support for the substitute version of the bill. (5-31-05)

The Rapid (Interurban Transit Partnership of Grand Rapids) provided testimony in support of the bill. (6-1-05)

                                                                                           Legislative Analyst:   E. Best/Chris Couch

                                                                                                  Fiscal Analyst:   William Hamilton

■ This analysis was prepared by nonpartisan House staff for use by House members in their deliberations, and does not constitute an official statement of legislative intent.