Michigan Votes Forum

Introduced in the Senate on March 6, 2003, the Senate version of the Fiscal Year (FY) 2003-2004 Transportation budget. (Note: Gov. Jennifer Granholm’s proposed budget for this department is Senate Bill 315 .) This appropriates $3.155 billion in adjusted gross spending (funded from all sources, including special state restricted fund and federal pass-through dollars, minus interdepartmental transfers), compared to $3.125 billion, which was the FY 2002-2003 amount enrolled in 2002, excluding any supplemental appropriations, line-item vetoes, or later cuts. Most of this revenue comes from either state fuel taxes, license fees, or federal transfers. Among other changes, the Senate budget contains funding that could lead to the reinstatement of 34 road expansion projects that Gov. Jennifer Granholm had postponed as part of her “Fix it First” program, which places a higher priority on repairing existing roads. Much more information on Michigan’s budget is available at Hot Topics: Michigan’s Budget Challenge at www.mackinac.org/4964

The vote was 24 in favor, 14 opposed and 0 not voting

(Senate Roll Call 111 at Senate Journal 43)

Click here to view bill details.

Senator Leland's first statement is as follows:

This amendment would recognize and restore the $38.9 million associated with the diesel parity provided in Senate Bill No. 387. This results in an increase in the following funds: state and road bridge fund increases by $13.7 million, county road commission increased by $13.7 million, cities and villages increased by $7.6 million, and CTF increased by $3.8 million. Currently, Michigan charges 15 cents per gallon of diesel fuel, but 19 cents per gallon of gasoline. Raising the diesel tax to create parity with gas in an increase of 4 cents would generate $38.9 million a year. Michigan's diesel fuel is cheap. In fact, 45 states charge more than Michigan's 15 cents per gallon. Pennsylvania is the highest at 31.8 cents, and Georgia is the lowest with 7.5 cents per gallon. The national average is 20.8 cents per gallon, and the federal tax is 24.4 cents per gallon.

According to MDOT, a recent FHA study estimates that trucks are responsible for 40 percent of the cost of building and repairing roads but contribute only 15 percent to the fund. In Michigan, we have the highest truck weights in the nation. Trucks cause more damage to the road. We do allow trucks to carry 164,000 pounds. The national average is 80,000 pounds. Michigan roads and bridges are in horrible shape. MDOT figures report that 56 percent of all state roads will need to be reconstructed in seven or fewer years. Repair money comes mostly from fuel taxes--more than 15 percent.

In Michigan, the first diesel tax was established in 1947 at 5 cents per gallon. In 2001 dollars, this would be 44 cents. Clearly, we are behind. Since then, the diesel tax has only increased by a total of 10 cents. In comparison, gas tax was created in 1925 at the rate of 3 cents per gallon, and it has increased by 16 cents.



Senator Leland's second statement is as follows:

I just would like to say that if we scheduled Senate Bill No. 387, the diesel tax bill, we would know if the votes were there. I would answer that, Madam Chairperson, by just suggesting and requesting that your side take up my bill, and just go for it and where she goes, she goes.



Senator Leland's third statement is as follows:

I hope that you would send me home happy this weekend and give me this one. This amendment simply will strict the language on the prohibition of funding for DARTA. This past weekend the Detroit Free Press and The Detroit News published a series of stories outlining the terrible state of public transportation in Southeast Michigan. I put the article on the members' desk on Tuesday. For example, there was a mother who rises just hours after midnight in order to begin her journey on the bus. First to deliver her child to daycare and then arrive to work at 6 a.m. and incidentally, her employer is Focus Hope. Another rider feels lucky that she only has a two hour commute on the bus.

In reality twenty-three communities in southeastern Michigan are not served by public transportation. Sadly these are exactly the places that provide 70 percent of the entry levels jobs, which pay better than the same establishments in downtown Detroit. People can not be expected to pull up their boot straps if we can not provide them with the shoes laces. Just ask Mr. Tywon Sampson who can't get a job at Twelve Oaks Mall, downtown Plymouth, or at the Cranbrook schools because the bus doesn't even go there, instead he works the lunch shift knowing he gets paid $2 dollars and hour less because he can't work the dinner schedule because of lack of transportation.

Unfortunately, this is typical for 10 percent of the population who doesn't have access to a car in southeastern car. These are more than stories; they are stark veracity of not having a regional transportation system in southeastern Michigan. This budget slashes $11 million from public transportation programs in southeastern Michigan, homes of more than 50 percent of the states' population with the rational that we should not be funding a broken system. To fix the system we need DARTA. However, this budget adds insult to injury because it prohibits spending any money on DARTA.

I would ask my colleagues to show their willingness to continue to work on providing a solution to the Mass Transit problems in southeast Michigan by supporting this amendment. The DARTA bill does not have a taxing authority other transportation systems will not see a decrease in funding because of an amendment added to the House version. Congress has earmarked $875,000 to get DARTA up and running. This will cost Michigan nothing. Michigan will then be eligible to apply for and 80 to 20 federal match, I would urge your support on this amendment.

Senator Switalski's statement is as follows:

I rise in support of Senator Scott's amendment Number 4. One of the great criticisms of SMART over the years has been the lack of local support for the system. But a few years ago the suburban communities decided to impose a tax upon themselves to fund SMART. Just last year, they voted to increase that tax, and they now give about two-thirds of a mil to support public transportation. Now we did that in the spirit of a federal, state, and local partnership to fund transit. We are kicking in our portion. I guess I am horrified to see that now that we are putting in more money, the state is pulling $10 million out of their contribution, in effect, discouraging us from pitching in and helping to fund this system.

Oakland and Macomb Counties have long been donor counties. We give a lot more in tax dollars to the state than we get back in services. In fact, we usually rank 82nd and 83rd under most measures of money returned to the county. So here we are going to lessen the amount coming back to our counties in support of public transit. I think it is a mistake.

Senator Scott's statement is as follows:

My amendment would eliminate the language capping the regional transit coordinating council at the statutory minimum; or in other words, an $11 million direct cut to DDOT and SMART. Essentially, this would cut funding to the bus agencies that serve nearly 50 percent of the state's population. It would also restore bus operating line items to $160 million, thus holding other urban public transit providers harmless.

You know, it is nice to work on the transportation budget, but in these fiscal times, the total transportation budget has increased by approximately three percent. Unfortunately, public transit funding has taken a cut. Public transit should not be a second-class citizen in this budget. Local public transit agencies are facing the same crisis with increasing costs for fuel, health care, and liability insurance as local governments and private corporations. Reducing their funding will mean a reduction in service. It was stated that there was a millage of $23 million. But that was not for DARTA. That was just for SMART.

It is so important that we have good public transportation in the Detroit area. If anything, we need more than the $11 million so we can make that transportation for all riders. If, in the urban areas, we had proper transportation, not as many people would go without car insurance because they can't afford it. It is just too expensive. If there was good transportation, you'd have the best ridership there is.

I ask my colleagues to support this bill so that we can restore to the Governor's budget this $11 million for DDOT which is so needed in the Detroit area, so that the workers--some were on public assistance, and now they are off public assistance trying to get out to the suburban areas for work. It was stated earlier how long it takes someone to get to these jobs. Some of these riders have to take three buses, get up at ungodly hours, and then they have high babysitting bills. We don't want to pay the babysitting bills. We don't want to get DDOT a mass transit system. What do we want? Please restore the $11 million to this budget.

Senator Garcia's statement is as follows:

If we want to get serious, we need to pass the budget with these 34 projects in it. What the Governor proposed is not a pause. It's a significant delay that's going to have a serious impact on the constituents of my district. It's going to impact their safety, health, and welfare, and to say that it is a minor pause, I think, is incorrect. I'd like to point out to the body that the Governor herself told us before the Appropriations Committee that her program was essentially the same thing as the previous administration. When I asked her, and asked her twice, she said, "Yes, it's essentially the same thing." Her director, by doing this, has gone back on the intent of what the Governor planned, and it's seriously affecting my constituents. That's why I urge the body to make sure these 34 projects are in there, and we are being serious because we need these projects to continue in the orderly, planned manner in which they were planned and started.

Senator Thomas' statement is as follows:

I just wanted to respond to the distinguished chair of the Appropriations Committee and agree with her. She is absolutely right. We should not continue to fund inefficiency. We should not continue to fund failure. That's why many of us in the chamber are urging passage of DARTA in creating a new regional, cooperative system. I would hope that given the statements that she and others have made today that we can renew that imperative for DARTA. Let's end the systems that we have. Let's end the competition and the bickering between the competing systems and create a system. Hopefully, I don't know about my other colleagues on this side, if to get DARTA going we have to have opt-out language, let's have opt-out language. Let's move the process forward with opt out, without opt out, so that our local units can come together. If we will stop the bickering in Lansing, they will stop the bickering back home and start the planning. So I would hope that folks would support the Scott amendment. I would hope that folks would support the House-passed legislation if that is what it takes. Let's stop the inefficiencies that exists here in Michigan. Let's fund mass transit appropriately.