FY 2021-22 TRANSPORTATION BUDGET                                         S.B. 92 (S-4):  SENATE SUBCOMMITTEE REC.

 

 

 

 

 

 

 

Senate Bill 92 (S-4 as reported)                                               Throughout this document Senate means Subcommittee.

Committee:  Appropriations

 

 

 

 

CHANGES FROM

FY 2020-21 YEAR-TO-DATE

FULL-TIME EQUATED (FTE) CLASSIFIED POSITIONS/FUNDING SOURCE

FY 2020-21

YEAR-TO-DATE*

FY 2021-22

SENATE SUBCOMM.

AMOUNT

PERCENT

FTE Positions..............................................................

                  2,818.3

                  2,693.7

                   (124.6)

            (4.4)

GROSS..........................................................................

       5,107,470,600

       5,231,001,000

          123,530,400

              2.4 

Less:

 

 

 

 

   Interdepartmental Grants Received.........................

              4,063,100

              4,044,800

                 (18,300)

            (0.5)

ADJUSTED GROSS....................................................

       5,103,407,500

       5,226,956,200

          123,548,700

              2.4 

Less:

 

 

 

 

   Federal Funds...........................................................

       1,424,196,100

       1,448,519,000

            24,322,900

              1.7 

   Local and Private.......................................................

            81,682,000

            81,682,000

                            0

              0.0 

TOTAL STATE SPENDING.........................................

       3,597,529,400

       3,696,755,200

            99,225,800

              2.8 

Less:

 

 

 

 

   Other State Restricted Funds..................................

       3,597,529,400

       3,696,755,200

            99,225,800

              2.8 

GENERAL FUND/GENERAL PURPOSE...................

                            0

                            0

                            0

              0.0 

PAYMENTS TO LOCALS...........................................

       2,125,342,100

       2,196,214,200

            70,872,100

              3.3 

*As of February 8, 2021.


 

 

Gross

GF/GP

FY 2020-21 Year-to-Date Appropriation...............................................

$5,107,470,600

$0

 

Changes from FY 2020-21 Year-to-Date:

 

 

  1.  Local Road and Bridge Construction. The Governor recommended Michigan Transportation Fund (MTF) increases because of revenue adjustments. The Senate concurred.

52,841,100

0

  2.  Debt Service Increase. The Governor included increased debt payments mostly from the State Trunkline Fund (STF). The Senate concurred.

38,547,300

0

  3.  Transportation Economic Development Program. The Governor recommended restoring full funding to Targeted Industries funding after previous year redirection. The Senate concurred.

12,807,400

0

  4.  State Trunkline Road and Bridge Construction. The Governor recommended an increase in Federal funding of $29.2 million, offsetting a decrease in available STF funding for a total increase of $1,881,200. The Senate concurred and included additional STF of $6,424,800 from recommended increases to Highway Main. & unclassified salaries.

8,306,000

0

  5.  Highway Maintenance Materials Increases. The Governor recommended additional funding for increased gravel and sand costs. The Senate concurred.

4,108,800

0

  6.  Local Bus Operating. The Governor restored funding for bus operating costs to before-pandemic funding levels. The Senate concurred.

3,000,000

0

  7.  Service Initiatives. The Governor included an increase based on Comprehensive Transportation Fund (CTF) revenue. The Senate concurred.

2,829,300

0

  8.  Detroit Metro/Wayne County Airport. The Governor included an increase based on Qualified Airport Fund revenue. The Senate concurred.

897,000

0

  9.  Local Bridge Program. The Governor recommended an increase based on expected MTF revenue. The Senate concurred.

812,500

0

10.  Intercity Services. The Governor recommended an increase based on expected CTF revenue. The Senate concurred.

800,000

0

11.  Airport Safety, Protection, and Improvement Program. The Governor recommended an increase based on expected State Aeronautics Fund revenue. The Senate concurred.

500,000

0

12.  Aviation Services. The Governor recommended an increase based on expected State Aeronautics Fund revenue. The Senate concurred.

413,600

0

13.  Movable Bridge Statutory Increase. The Governor recommended an increase consistent with statutory requirements. The Senate concurred.

108,900

0

14.  Detroit/Wayne County Port Authority. The Senate included additional CTF for the Port Authority.

100,000

0

15.  Marine Passenger Services. The Governor recommended an increase based on expected CTF revenue. The Senate concurred.

84,000

0

16.  Van Pooling. The Governor recommended an increase based on expected CTF revenue. The Senate concurred.

45,000

0

17.  Unclassified Salaries. The Governor recommended an increase of $24,800 for unclassified positions. The Senate did not include and moved the restricted revenue to State Trunkline Road and Bridge.

0

0

18.  Rail Operations and Infrastructure. The Governor recommended an increase of $5.6 million based on CTF revenue. The Senate did not include this increase.

0

0

19.  Highway Maintenance Direct Force Increase. The Governor recommended a $3.5 million STF increase and 76 additional FTEs to transition seasonal maintenance employees to full time. The Senate did not include this increase and moved the restricted revenue to the State Trunkline Road and Bridge Construction line.

0

0

20.  Highway Maintenance in Monroe County. The Governor recommended a $2.9 million STF increase and additional 42 FTEs to assume maintenance duties in Monroe County after the County ended its contract with the Department in FY 2019-20. The Senate did not include this increase and moved the restricted revenue to the State Trunkline Road and Bridge Construction line.

0

0

21.  Interdepartmental Grant Adjustments. The Governor recommended a decrease in payments to other departments. The Senate concurred.

(391,100)

0

22.  Economic Adjustments. Includes a negative $2,279,400 Gross and $0 GF/GP for total economic adjustments, of which an estimated negative $8,898,500 Gross and $0 GF/GP is for legacy retirement costs (pension and retiree health). The Senate concurred.

(2,279,400)

0

23.  Comparison to Governor's Recommendation. The Senate is $5,618,200 Gross and $0 GF/GP under the Governor's rec.

 

 

 

Total Changes.........................................................................................

$123,530,400

$0

FY 2021-22 Senate Appropriations Subcommittee Recommendation......

$5,231,001,000

$0

 

 

Boilerplate Changes from FY 2020-21 Year-to-Date:

  1.  Internet Reporting. The Governor altered a section to allow the MDOT to choose whether to post reports online or email them to selected recipients. The Senate retained the section as is. (Sec. 204)

  2.  State Budget Office Lapse Reporting. The Governor amended a section to move the reporting date for GF/GP lapse back a month to December 31. The Senate concurred. (Sec. 209)

  3.  Removed - Contingency Fund Authorization. The Governor increased Federal and State-restricted contingency fund authorization to prior fiscal year levels. The Senate removed the section. (Sec. 210)

  4.  Disciplinary Action. The Governor removed a section prohibiting disciplinary action against employees who communicate with the Legislature. The Senate retained the section. (Sec. 215)

  5.  Report on Remote Work. The Governor removed a section requiring MDOT to report on cost savings from remote work. The Senate retained the section. (Sec. 216)

  6.  Exhausting Work Project Funding. The Governor removed a section requiring MDOT to exhaust work project authorization before spending appropriations. The Senate retained the section. (Sec. 217)

  7.  Intertransfer of Funds following Administrative Board Action. The Governor removed a section allowing the Legislature to transfer funds by resolution after Admin. Board action. The Senate retained the section. (Sec. 218)

  8.  Record Retention. The Governor removed a section requiring MDOT to retain copies of all reports funded from appropriations. The Senate retained the section. (Sec. 219)

  9.  Policy Reporting. The Governor removed a section requiring MDOT to report on all policy changes made to implement public acts. The Senate retained the section. (Sec. 220)

10.  Use of Remanufactured Parts. The Governor removed a section requiring MDOT use remanufactured parts for its vehicle fleet. The Senate retained the section. (Sec. 270)

11.  Bridge Authority Hearings. The Governor removed a subsection requiring bridge authorities hold public hearings before raising tolls. The Senate retained the section as is. (Sec. 301)

12.  State Trunkline Fund Debt Service Limits (NEW). The Senate added a section identifying State Trunkline Fund debt service limits and requiring a report from the Department. (Sec. 302)

13.  Winter Maintence Pilot Program (NEW). The Senate added a section requiring the Department to initiate a winter maintenance pilot program. (Sec. 303)

14.  Competitive Leasing. The Governor removed a section requiring MDOT to lease space on public transportation properties at competitive market rates. The Senate retained the section. (Sec. 305)

15.  Contract Reporting. The Governor removed language from subsections requiring reporting on MDOT's interdepartmental contracts. The Senate concurred. (Sec. 306)

16.  Removed - MDOT Real Property. The Governor removed a section requiring MDOT to report on the value of real estate owned by the Department. The Senate concurred. (Sec. 308)

17.  Removed - Employee Monitoring. The Governor removed a section requiring MDOT to report on all employee monitoring efforts and systems. The Senate concurred. (Sec. 309)

18.  Removed - State Infrastructure Bank Report. The Governor removed a subsection requiring MDOT to report on the balance of the State Infrastructure Bank. The Senate concurred. (Sec. 313)

19.  Rest Area Signage. The Governor removed a sec. requiring MDOT post signs at rest areas. The Senate retained. (Sec. 319)

20.  Removed - Freedom of Information Act Compliance. The Governor removed a section requiring MDOT to report on Freedom of Information Act requests. The Senate concurred. (Sec. 328)

21.  Contract Payment. The Governor removed a section requiring MDOT to report on contractor payments. The Senate kept the section, but removed the reporting requirement. (Sec. 353)

22.  Local Federal Aid Projects. The Governor removed a section requiring MDOT to review all local Federal aid project submittals within 120 days after receipt. The Senate retained. (Sec. 357)

23.  Groundbreaking Ceremonies. The Governor removed a section prohibiting payments for groundbreaking ceremonies. The Senate retained. (Sec. 375)

24.  Signage Study Ban. The Governor removed a section prohibiting MDOT from studying the relationship between signage and highway safety. The Senate retained. (Sec. 376)

25.  Contracting with Former Directors. The Governor removed a section prohibiting MDOT from contracting with a vendor at which a former Director is employed for contracts in excess of $100,000. The Senate retained. (Sec. 377)

26.  Removed - Hazardous Materials Routing. The Governor removed a section requiring MDOT to produce a report on hazardous materials routing. The Senate concurred. (Sec. 378)

27.  Removed - E-Verify Requirement. The Governor removed a section requiring contractors and subcontractors to use the E-Verify system to verify employees are authorized to work in the US. The Senate concurred. (Sec. 381)

28.  Final Cost-Sharing. The Governor removed a section requiring MDOT to submit final cost-sharing bills to local governments within two years of contract payment. The Senate retained. (Sec. 382)

29.  Removed - Transporting Legislators. The Gov removed a subsection prohibiting MDOT from transporting legislators without the approval of the Senate Majority Leader or the Speaker of the House. The Senate concurred. (Sec. 383)

30.  Toll Credit Reporting. The Governor removed a section directing the Department on how to apply toll credits and requiring MDOT to report on the toll credit program. The Senate removed the reporting requirement, but kept the reporting requirement but removed the directive on how to apply toll credits. (Sec. 386)

31.  Traffic Study Reporting. The Governor removed a sec requiring MDOT to report on traffic studies. The Senate retained. (Sec. 387)

32.  Long-Term Contract Reporting. The Governor removed a section requiring MDOT to report on any contractor agreements over five years or $5.0 million. The Senate retained. (Sec. 389)

33.  Removed - Restricted Fund Balances. The Gov removed a section requiring MDOT report on previous year restricted fund balances within 14 days of the release of the budget recommendation. The Senate concurred. (Sec. 390)

34.  Motor Fuel Quality. The Governor removed a section prohibiting motor fuel testing. The Senate retained. (Sec. 391)

35.  Removed - Best Transit Practices. The Governor removed a section requiring MDOT to employ best practices related to transit services. The Senate concurred. (Sec. 393)

36.  Preserving Existing Roadways. The Governor removed a section requiring MDOT and local agencies to prioritize existing roadways. The Senate retained. (Sec. 394)

37.  Removed - Contingency STF Expenditure on Highway Maintenance. The Senate removed a section allowing the MDOT to use $10.0 million STF appropriated for Road and Bridge Construction on Highway Maintenance. (Sec. 395)

38.  Minimum Expenditure on Preventive Maintenance. The Governor removed a section requiring MDOT to spend 10% of its road and bridge construction appropriation on capital preventive maintenance. The Senate retained. (Sec. 399)

39.  Removed - Local Bridge Carry Forward Language. The Senate removed language that previously allowed the Department to carry forward unexpended local bridge funds. (Sec. 503)

40.  Removed - Informational Meetings for Local Governments. The Governor removed a section requiring MDOT host meetings to help local governments understand State and Federal grant and loan programs. The Senate concurred. (Sec. 505)

41.  Warranties. The Governor removed a section requiring MDOT to evaluate and update existing warranty policies. The Senate retained the section and added a reporting requirement. (Sec. 601)

42.  Removed - State Trunkline Fund Carry Forward Language. The Senate amended a section that previously allowed the Department to carry forward unexpended State Trunkline Funds. (Sec. 604)

43.  Contract Incentives & Disincentives. The Governor removed a section requiring MDOT establish and report on contract incentives and disincentives. The Senate retained the section but removed the reporting requirement. (Sec. 612)

44.  Removed - Project Reporting. The Governor removed a section requiring MDOT to report on several aspects of all capital Federal aid participating construction projects. The Senate concurred. (Sec. 613)


45.  Removed & Replaced - Alternative Road Surface Materials & Innovative Stakeholder Group. The Governor removed a section requiring MDOT to report on the use of alternative road surface materials. The Senate replaced the section and established an Innovation Council to review innovative road materials. (Sec. 660 & 661)

46.  Rail Line Abandonment. The Governor removed a section requiring MDOT to report to the Legislature when a railroad company has filed to abandon a line. The Senate retained. (Sec. 703)

47.  Rail Operations and Infrastructure Report. The Governor removed a section requiring MDOT to report on rail operations and infrastructure programs. The Senate retained. (Sec. 704)

48.  Removed - Ride-Sharing for Medical/Elderly. The Governor removed a section requiring elderly and medical transit programs solicit proposals for ride-sharing companies to provide 50% service. The Senate concurred. (Sec. 719)

49.  Removed - Farebox Goal. The Governor removed a section encouraging transit agencies achieve a farebox recovery rate of 6%. The Senate concurred. (Sec. 720)

50.  Upper Peninsula Propane. The Governor added a section setting aside $10.0 million for a rail freight project to deliver and distribute propane to the Upper Peninsula. The Senate did not include. (Sec. 736)

51.  Meeting with Rail. The Governor removed a section requiring MDOT to meet with the rail industry twice a year. The Senate retained. (Sec. 752)

52.  Marine Passenger Spending. The Governor removed a section directing the expenditure of the Marine Passenger appropriation. The Senate retained. (Sec. 753)

 

 

Date Completed:  4-20-21                                                                                          Fiscal Analyst:  Michael Siracuse

                                                                                         

                                                                                         

 

This analysis was prepared by nonpartisan Senate staff for use by the Senate in its deliberations and does not constitute an official statement of legislative intent.