Transportation Funding

NEW!-A Quick Guide to Roads and Funding in MI-By County Road Assoc of MI

Fast Facts Regarding Transportation Funding

2011-December~MDOT Budget Presentation by Kirk Steudle

Click here to go to the SWMPC Transportation Asset Management page, to learn about the statewide, regional, and local trends in the condition of roads and bridges, and the need to preserve our infrastructure.

Visit http://www.drivemi.org/ to learn more about the campaign to invest in transportation infrastructure.

Visit Transportation 4 America to learn more about the nation's transportation funding crisis.

According to the Michigan Constitution: 

• At least 90% of state motor fuel tax and license fee revenues (Michigan Transportation Fund) must be spent on state and local roads, streets, and bridges. 
• Up to 10% of state motor fuel tax and license fee revenues (Michigan Transportation Fund) can be spent on public transportation, intercity bus, passenger and freight rail, and multi-modal transportation services.

Gas Tax Facts:

• The motor fuel tax in the State of Michigan is a flat tax of 19 cents for every gallon of gas purchased within the State.  Although the price of gas has risen over the years, the amount of tax collected for each gallon of gas has not risen since 1997.
• This means that with increasing fuel efficiency, future inflation, and decreasing vehicle miles driven, the state funds available for roads, bridges, trails, and public transit will continue to decrease.
• Starting in fiscal year 2012, the State of Michigan is posed to lose around $500 million per year in federal grants for infrastructure projects because of a shortfall in state matching funds.
• The State of Michigan issued bonds to fill the shortfall in fiscal year 2011, but has now reached its maximum bond authority.  Raising the gas tax or levying a new tax are among the few remaining options for the State to provide its state match for federal transportation funds for highway and public transit projects.
• The County of Berrien has no other source of revenue for transportation besides the state fuel tax and license fees.  The Berrien County Road Commission can no longer provide matching funds for federal transportation projects other than seal coating roads, and is behind schedule for maintaining all county roads with seal coat treatment.

For more resources on the transportation budget, please see the Transportation Funding section of the Transportation Library web page.

The Project Funding Opportunities webpage contains information about opportunities for grant funding for projects related to economic development.