House Fiscal Agency briefed committee on Michigan transportation budget, funding mix and shortfall

William Hamilton, senior fiscal analyst for the Michigan House Fiscal Agency, briefed the House Transportation and Infrastructure Committee on the current state transportation budget, the main revenue sources that support it and longer-term funding challenges.

Hamilton told the committee the current gross appropriation for state transportation is about $6.8 billion and that roughly two-thirds of that comes from state‑restricted revenue while about one‑third is federal money. "Vehicle registrations are actually the biggest contributor to state restricted transportation revenue," Hamilton said, and he added that motor fuel taxes, vehicle registration fees and earmarks into the Michigan Transportation Fund are the largest single revenue stream for transportation programs.

Hamilton emphasized how the Michigan Transportation Fund (MTF), established by statute, distributes most of the state restricted funds. "Of the $4.2 billion in state restricted funds, $3.9 billion is credited to and…