SB0841: SENATE APPROPRIATIONS REC. (Date Completed: 4-27-22)

FY 2022-23 TRANSPORTATION BUDGET�� S.B. 841 (S-1):� SENATE APPROPRIATIONS REC.

Senate Bill 841 (S-1 as reported)�� Throughout this document Senate means Appropriations Committee.

Committee:� Appropriations

			CHANGES FROM FY 2021-22 YEAR-TO-DATE
FULL-TIME EQUATED (FTE) CLASSIFIED POSITIONS/FUNDING SOURCE	FY 2021-22 YEAR-TO-DATE*	FY 2022-23 SEN. FULL COMM.	AMOUNT	PERCENT
FTE Positions..............................................................	�� 2,936.3	�� 2,936.3	�� 0.0	�� 0.0�
GROSS..........................................................................	�� 6,074,601,700	�� 6,021,048,900	�� (53,552,800)	�� (0.9)
Less:
�� Interdepartmental Grants Received.........................	�� 4,044,800	�� 4,123,800	�� 79,000	�� 2.0�
ADJUSTED GROSS....................................................	�� 6,070,556,900	�� 6,016,925,100	�� (53,631,800)	�� (0.9)
Less:
�� Federal Funds...........................................................	�� 2,193,410,000	�� 2,026,480,000	�� (166,930,000)	�� (7.6)
�� Local and Private.......................................................	�� 86,673,500	�� 86,673,500	�� 0	�� 0.0�
TOTAL STATE SPENDING.........................................	�� 3,790,473,400	�� 3,903,771,600	�� 113,298,200	�� 3.0�
Less:
�� Other State Restricted Funds..................................	�� 3,702,373,400	�� 3,903,771,600	�� 201,398,200	�� 5.4�
GENERAL FUND/GENERAL PURPOSE...................	�� 88,100,000	�� 0	�� (88,100,000)	�� (100.0)
PAYMENTS TO LOCALS...........................................	�� 2,227,314,200	�� 2,312,836,300	�� 85,522,100	�� 3.8�

*As of April 12, 2022.

	Gross	GF/GP
FY 2021-22 Year-to-Date Appropriation.................................................	$6,074,601,700	$88,100,000

Changes from FY 2021-22 Year-to-Date:
1. State Trunkline Road and Bridge Construction. The Governor recommended an increase in Federal funding of $96.5 million and a reduction in State Trunkline funds (STF) ($10.8 million) from the current year. The Senate concurred and added STF to the line that the Governor had recommended for staffing increases.	95,088,900	0
2. County Road Commissions Restricted Fund Increases. The Governor included an increase in Michigan Transportation funds (MTF) for county road commissions. The Senate concurred.	56,271,700	0
3. Freight Railroad and Development Grant Program. The Governor recommended comprehensive transportation fund (CTF) increases to multiple line items due to surplus CTF revenue. The Senate reduced or eliminated those increases and added a freight rail grant program line item with the CTF surplus.	32,750,000	0
4. Airport Safety Improvement Program. The Governor included additional Federal aid and state aeronautics funds for this line. The Senate concurred.	31,893,900	0
5. Cities and Villages Restricted Fund Increases. The Governor included an increase in MTF for cities and villages. The Senate concurred.	31,374,000	0
6. Local Federal Aid Road and Bridge Construction. The Governor included additional Federal aid for local roads and bridges. The Senate concurred.	15,233,300	0
7. One-Time Passenger Ferry. The Senate included CTF funding for the purchase of a passenger ferry.	14,000,000	0
8. Rail Federal Aid Increase. The Governor recommended an increase in Federal aid for Rail operations and infrastructure. The Senate concurred.	10,000,000	0
9. Highway Maintenance Materials Increases. The Governor recommended an increase for rising materials costs. The Senate concurred.	9,950,300	0
10. Local Bus Operating. The Governor included a $5.0 million increase. The Senate substituted that amount for a $7.0 million increase.	7,000,000	0
11. Transportation Economic Development Programs. The Governor recommended increases to the economic development line items based on available revenue. The Senate concurred.	4,349,100	0
12. Highway Maintenance Contract Services. The Governor recommended an increase for contract spending with county road commissions. The Senate concurred.	3,106,900	0
13. IIJA Airport Infrastructure Grants. The Governor included a slight increase Federal grants for airports over year-to-date. The Senate concurred.	2,173,000	0
14. Construction Services Support Contracts. The Governor included an increase in program development and delivery for construction support services. The Senate concurred.	1,788,700	0
15. Information Technology. The Governor recommended a slight increase for information technology. The Senate concurred.	1,725,000	0
16. Interdepartmental Grant Adjustments. The Governor made slight adjustments to interdepartmental grants. The senate concurred.	1,115,000	0
17. One-Time Northern Michigan Rail Study. The Senate included one-time CTF funding for a phase II rail study required by the federal railroad administration for future passenger service from Ann Arbor to Traverse City.	1,000,000	0
18. One-Time Basic Marine Dock Project. The Senate included CTF funding for a marine dock project in Escanaba.	700,000	0
19. Detroit Metropolitan Wayne County Airport. The Governor recommended adjusting the appropriation as per available revenue. The Senate concurred.	650,000	0
20. One-Time Aging Freight Rail Replacement. The Senate included CTF funding to assist a local economic development corporation in the upper peninsula replace aging rail.	550,000	�0
21. Grants to Local Programs. The Governor recommended program staffing increases using MTF funds for 2 FTEs. The Senate did not include the FTEs and shifted the MTF funding to Local Programs.	475,400	0
22. Traffic Signal Billing Program. The Governor recommended an increase to improve traffic signal billing processes. The Senate concurred.	400,000	0
23. Blue Water Bridge. The Governor recommended staffing increases using some Blue Water Bridge Funds. The Senate kept the funding in the line but did not include the FTEs.	340,300	0
24. Movable Bridge Revenue Adjustment. The Governor recommended an adjustment as per statute. The Senate concurred.	305,400	0
25. Freight Property Management. The Governor included a slight increase based on available revenue. The Senate concurred.	300,000	0
26. Aviation Services. The Governor included additional State aeronautics funds for 2 FTEs. The Senate did not include the FTEs but kept the funding within the line.	288,800
27. Local Agency Software Administration Tool. The Governor increased the line for business services to develop statewide administration software for local agencies. The Senate concurred.	206,000	0
28. CTF Residual. The Senate added remaining CTF surplus funds to the Transit Capital line item for a small increase.	162,600	0
29. Security Services. The Governor recommended an increase in spending for security services. The Senate concurred.	77,400	0
30. One-Time Ann Arbor to Traverse City Passenger Rail. The Senate included a CTF placeholder for the development of a passenger rail line connecting Ann Arbor and Traverse City.	100	0
31. One-Time Maritime and Port Facility Improvement Office. The Senate included a CTF placeholder for a new, statewide port office to provide grants for port facility improvements.	100	0
32. One-Time Local Rail Grade Crossing/Separation. The Senate included a CTF placeholder for local grade crossing investment.	100	0
33. One-time Critical Road and Bridge Infrastructure. The Governor recommended a One-time GF appropriation of $150.0 million for critical roads and bridges. The Senate did not include.	0	0
34. One-Time Pump Station Back-up Generators. The Governor included GF/GP for pump station generators. The Senate did not include as $66.0 million in Federal funds were appropriated for this purpose in supplemental PA 53 of 2022.	0	0
35. One-Time Priority Rail Grade Crossing/Separation. The Governor included $60.0 million GF/GP for rail grade separations. The Senate did not include.	0	0
36. Program Staffing. The Governor recommended increases of restricted fund and federal spending totaling $26.7 million for an additional 198 FTEs. The Senate did not include and directed the Federal and STF funds to road and bridge construction.	0	0
37. One-Time Aviation Weather Equipment. The Governor included $3.9 million GF/GP to replace aging state weather station equipment. The Senate did not include.	0	0
38. CTF Adjustment - Service Initiatives. The Governor adjusted the line to cover the cost of increased spending on freight property management, above. The Senate concurred.	(300,000)	0
39. Local Bridge Fund Revenue Adjustment. The Governor recommended a reduction due to available revenue. The Senate concurred.	(831,000)	0
40. Debt Service Reductions. The Governor reduced debt payment amounts. The Senate concurred.	(28,343,100)	0
41. Fiscal year 2021-22 Supplemental Backout. The Senate recommendation does not include current year federal and GF spending.	(357,336,300)	(88,100,000)
42. Economic Adjustments. Includes $9,981,600 Gross and $0 GF/GP for total economic adjustments, of which an estimated negative $3,938,100 Gross and $0 GF/GP is for legacy retirement costs (pension and retiree health).	9,981,600	0
43. Comparison to the Governor�s Recommendation. The Senate is $279,900,000 Gross and $279,900,000 GF/GP under the Governor.

Total Changes.........................................................................................	($53,552,800)	($88,100,000)
FY 2022-23 Senate Appropriations Committee Recommendation...............	$6,021,048,900	$0

FY 2022-23 Boilerplate Changes from FY 2021-22 Year-to-Date:

1. Definitions. The Governor removed the definition for "CRRSSA" and added a definition for "IIJA". (Infrastructure Investment and Jobs Act, 2021, Public Law 117-58.) The Senate kept the section as is. (Sec. 203)

2. Outside Legal Services. The Senate amended a section to allow for outside legal counsel in place of Attorney General representation. (Sec. 208)

3. GF Fund Lapses. The Governor amended a section moving the reporting date for GF/GP lapses by program from November 30 to December 31. The Senate concurred. (Sec. 209)

4. Removed - Contingency Fund Authorization. The Governor amended a section by increasing Federal contingency fund authorization from $40.0 million to $200.0 million and State restricted fund contingency authorization from $5.0 million to $40.0 million. The Senate removed the section. (Sec. 210)

5. Legacy Costs. The Governor amended a section updating pension-related and health care legacy costs. The Senate concurred. (Sec. 214)

6. Disciplinary Action. The Governor removed a section prohibiting disciplinary action against employees that communicate with members of the Legislature. The Senate retained the section. (Sec. 215)

7. FTE Reporting. The Governor removed a section requiring a report on FTEs employed and working remotely. The Senate retained. (Sec. 216)

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

9. Intertransfer of Funds following Administrative Board Action. The Governor removed a section allowing the Legislature to transfer funds by concurrent resolution in response to a transfer by the Administrative Board. The Senate retained. (Sec. 218)

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

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

12. Severance Pay Reporting. The Governor removed a section requiring reporting on severance pay. The Senate retained. (Sec. 221)

13. Vaccine Status/Passports. The Governor removed a section prohibiting vaccine passports or vaccine requirements for employment. The Senate retained. (Sec. 222)

14. Use of Remanufactured Parts. The Governor removed a section requiring MDOT use remanufactured parts for its vehicle fleet. The Senate retained the section and amended to allow for the use of recycled parts. (Sec. 270)

15. Debt Service Reporting. The Governor removed a section estimating current year debt service and requiring reporting on debt service. The Senate retained and updated the section. (Sec. 302)

16. Bond-Financed Project Signage. The Governor removed a section requiring signage for bond-financed trunkline construction projects. The Senate retained. (Sec. 303)

17. MDOT Property Leasing. The Governor removed a section allowing for the leasing of space on public passenger transportation properties and direction for leasing revenue. The Senate retained. (Sec. 305)

18. Winter Maintenance Pilot Program. The Governor removed a section requiring MDOT to initiate a winter maintenance pilot program using agricultural additives. The Senate retained. (Sec. 308)

19. Local Bridge Bundling Initiative Report. The Governor removed a section requiring MDOT report on the use of CRRSSA funds for the local bridge bundling initiative. The Senate retained. (Sec. 311)

20. State Infrastructure Bank Report. The Governor removed a subsection requiring a report on the State infrastructure bank program. The Senate retained the subsection. (Sec. 313)

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

22. Prompt Payment of Contractors and Subcontractors. The Governor removed a section requiring review of the payment process for contractors and requiring prompt payment of contractors and subcontractors. The Senate retained. (Sec. 353)

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

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

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

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

27. Toll Credit Reporting. The Governor removed a section requiring MDOT report on the toll credit program. The Senate retained. (Sec. 386)

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

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

30. Best Transit Practices. The Governor removed a section requiring MDOT employ best practices related to transit services. The Senate retained. (Sec. 393)

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

32. Not Included - Permissive use of Road and Bridge Construction Funds for Highway Maintenance. The Governor added a new section allowing MDOT to use up to $10.0 million of restricted funds appropriated for trunkline road and bridge construction on highway maintenance, as needed. The Senate did not include. (Sec. 395)

33. Preventative Maintenance Prioritization. The Governor removed a section requiring MDOT prioritize capital preventative maintenance. The Senate retained. (Sec. 399)

34. Local Bridge Fund Carry Forward. The Governor amended a section to allow lapsed local bridge funds to carry forward at the end of the fiscal year. The Senate retained the section as is. (Sec. 503)

35. Warranties. The Governor removed a section requiring MDOT evaluate and update existing warranty policies. The Senate retained. (Sec. 601)

36. NEW - Electric Vehicle Study. The Senate added a section requiring the Department to study the impact on revenue resulting from the integration of electric vehicles on Michigan roadways. (Sec. 602)

37. Contract Incentives & Disincentives. The Governor removed a section requiring MDOT establish and report on contract incentives and disincentives for trunkline projects. The Senate retained. (Sec. 612)

38. Examination of Alternative Road Surface Materials. The Governor removed a section encouraging the Department to examine alternative road surface materials. The Senate retained. (Sec. 660)

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

40. NEW - Freight Railroad and Development Grant Program. The Senate added a section detailing the new freight rail grant program funded in part 1. (Sec. 710)

41. Farebox Goal. The Governor removed a section encouraging transit agencies achieve a farebox recovery rate of 6.0%. The Senate retained the section. (Sec. 720)

42. Prohibition on Rail Freight Development as Alternative to Energy Pipeline. The Governor removed a section prohibiting MDOT from developing a rail project that would support the cessation of pipeline operations across the Straits of Mackinac. The Senate retained. (Sec. 736)