Department of Transportation

The Department of Transportation is responsible for ensuring that the state’s network of roads and bridges, public transportation systems, passenger and freight rail and aviation programs provide for the efficient and effective movement of people and goods. The governor’s proposed budget for fiscal years 2016 and 2017 recommends total ongoing funding of $3.5 billion. The governor also recommends $139.5 million in general fund one-time spending in fiscal year 2016.

Highlights of Governor’s Budget Recommendation

In December 2014, the Legislature authorized Proposal 1, a question on the May 2015 ballot that seeks to raise an estimated $1.3 billion in new revenues for transportation, as well as additional funds for schools and local governments.

Pending a decision of the voters, the governor’s fiscal year 2016 budget recommendation is based on current law. If the ballot proposal is successful, a revised transportation recommendation will be presented to the Legislature.

The fiscal year 2016 current law recommendation maximizes available resources for transportation. However, the current resources available are not sufficient to meet Michigan’s current or future transportation infrastructure needs. Based on current revenue projections, the percentage of state trunklines in good or fair condition is expected to fall from 82 percent in 2014 to 44 percent in 2020.

Governor Snyder’s fiscal year 2016 current law budget recommendation includes the following key points:

• Current dedicated transportation revenues continue to be insufficient to match all of Michigan’s available federal transportation aid. A total of $139.5 million general fund is included in the governor’s budget to leverage up to $800 million in federal aid across all modes of transportation.

• Governor Snyder’s budget also recommends a $10 million increase in state trunkline funding to address critical high priority maintenance activities. These additional funds provide for increased winter maintenance costs and other system preservation and safety-related activities.

• The fiscal year 2016 recommendation includes appropriation authority for $51.1 million in new federal grants for passenger rail programs, nonurban transit agencies, jobs access/reverse commute services and safety oversight for rail and fixed guideway-based transit systems.