LANSING – The state would provide its full match for federal transportation funds by using $50 million in toll credits from existing bridges instead of counting money the Canadian government has offered to cover Michigan’s share of costs toward a new bridge connecting Detroit and Windsor, Ontario, under budgets approved Thursday by House and Senate subcommittees.
Governor Rick Snyder had struck a deal with the U.S. Department of Transportation to allow the state to count the $550 million toward Michigan’s federal transportation funding match. Subsequent discussions with the federal government enabled an additional $475 million in costs from the proposed New International Trade Crossing, formerly known as the Detroit River International Crossing, to count toward the federal match.
Instead, the budgets approved by the House and Senate Appropriations Transportation Subcommittees would use available toll credits from the Ambassador and Mackinac bridges to cover the match (SB 185 , HB 4282 )
The two subcommittee chairs, Sen. John Pappageorge (R-Troy) and Rep. David Agema (R-Grandville), had the same reasons. Because legislation to authorize the new bridge has yet to pass, relying on the Canadian money for the match is an unacceptable risk.
“We don’t have a bridge,” Pappageorge said. “I can’t do a pretend budget. … What this budget guarantees is we have our federal match.”
Pappageorge said the move does not reflect where the Senate stands on authorizing the bridge itself. Agema also indicated that a recent no-confidence vote in the Canadian government could put its proposed funds for the bridge at risk.
Keith Ledbetter of the Michigan Infrastructure and Transportation Association said using the Canadian money is a better move because it means construction of actual infrastructure.
The Michigan Environmental Council criticized the cuts to public transit.
“Michiganders are turning in increasing numbers to more reasonably priced transportation solutions,” said Tim Fischer of the MEC in a statement. “This is a penny-wise, pound-foolish move by politicians who could have helped to provide relief to family budgets.”
Both subcommittee budgets also contain cuts to the Bus Capital program ($10 million) and Local Bus Operating program ($5 million).
Overall, the Senate budget contains $3.31 billion, all restricted funds. That’s a 2.4 percent increase from the current year.
The $3.3 billion House version of the budget (HB 4282), all federal and restricted funds, was reported on a party-line vote.
Democrats in the House subcommittee attempted to restore the funding for bus operations, both by moving the money back from the trunkline fund and by moving money from the grant to the Department of State, but both efforts were rejected on party-line votes.
Rep. Brandon Dillon (D-Grand Rapids), minority vice chair of the committee, raised concerns that the shifted funds, while seeing a federal match as highway funds, would mean foregoing federal transit matching funds.
Analysts said the operating funds are not usually used for matching federal funds and Agema said local bus systems do have options for replacing the funds, either with local taxes or increased rider fees. “You’re asking us to do it for them,” he said.
Agema said the change would also force transit agencies to be more efficient. He acknowledged Democratic points that no transit system is currently able to cover its costs, but he said some agencies in the state are covering as little as 2 percent of their costs.
“It’s not unreasonable to expect 20 percent from the toll box,” he said.
Rep. Richard LeBlanc (D-Westland) also chastised the majority for including the funding change in the budget without having also introduced the legislation needed to allow use of the comprehensive transportation fund for highways.
“There was much deserved criticism for these kinds of actions in the past,” he said. “If it’s right, I’ll vote on it. If we have to fix in full committee or on the floor, let’s fix here.”
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