LOCAL FEDERAL MATCH GRANT PROGRAM

House Bill 4556

Sponsor:  Rep. Jeff Mayes

Committee:  Transportation

Complete to 5-3-07

A SUMMARY OF HOUSE BILL 4556 AS INTRODUCED 3-29-07

House Bill 4556 would amend Section 11f of Public Act 51 of 1951.  Section 11f was added to Public Act 51 in May 2006 to establish selection criteria for a new local federal match grant program (Local Jobs Today).  With regard to the project eligibility criteria, the bill would extend the time period criteria from September 30, 2007 to December 31, 2007.  Under the bill, to be selected for funding, projects would have to be under construction or let for bid no later than December 31, 2007.

Under the program, as first established in 2006, the Michigan Department of Transportation was to use up to $80 million in State Trunkline Fund (STF) bond proceeds to provide the 20% non-federal match for road projects under the jurisdiction of local road agencies.

The program was put into effect through three pieces of legislation:

House Bill 6003 (2006 PA 141) and Senate Bill 1132 (2006 PA 139) amended Section 11e of Act 51 to create a local federal match program within the State Trunkline Fund to receive proceeds from bond sales, not to exceed $80.0 million, to be used for federal high priority projects, or for the advancement of 2006 projects into 2005, or 2007 projects into 2006.  Senate Bill 1192 (2006 PA 140) added new section 11f to establish criteria for project selection.  For additional information on the program, refer to the legislative analysis of the above-referenced bills.

FISCAL IMPACT:

The bill would allow local units of government additional time to develop projects for inclusion in the program and thus access federal aid, including congressional project earmarks made in the reauthorization of the federal aid program (SAFETEA-LU). 

                                                                                                  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.