Michigan budget allocates $5.7B to road and bridge programs for transportation funding

The Appropriations - General Government meeting held on February 26, 2025, focused on the allocation of Michigan's transportation budget, which totals approximately $6.8 billion for the current year. Key discussions highlighted the distribution of funds across various transportation programs, with road and bridge initiatives receiving the largest share.

Road and bridge programs account for about 83% of the budget, amounting to nearly $5.7 billion. This funding primarily supports local road agencies, including county road commissions and municipalities, which receive approximately $2.6 billion. The State Trunk Line Capital Construction Program is allocated around $1.6 billion, while maintenance for trunk lines receives about $520 million. These funds are crucial for maintaining and improving Michigan's extensive road network, which spans nearly 9,700 miles and handles over half of the state's vehicle miles traveled.

Public transportation programs are also a significant focus, receiving about 12% of the budget, or $805.6 million. This funding supports both capital and operational assistance for local transit agencies, including larger systems like the Detroit Department of Transportation and smaller community services.

Aeronautics programs, which provide capital assistance to public airports, are allocated approximately $330.3 million. This funding is primarily supported by federal aid, with the state providing matching funds.

The meeting also addressed the sources of revenue for the Michigan Transportation Fund (MTF). Vehicle registration taxes have emerged as the largest contributor, surpassing motor fuel taxes, which include both gasoline and diesel. The budget includes $600 million from income tax earmarks and revenue from marijuana excise taxes, both designated for transportation purposes.

Overall, the meeting underscored the importance of structured funding distribution as guided by Public Act 51 of 1951, which governs the allocation of transportation funds in Michigan. The committee emphasized the need for ongoing support to ensure the maintenance and improvement of the state's transportation infrastructure, which is vital for economic growth and public safety.