Today the Senate passed SB 351 which takes the 4% state sales tax on gas that is restricted general fund revenue and redirects it to the State Trunk Line Fund for fiscal year 2013 in order to match available federal highway funds. The bill caps the amount that can be redirected at $100 milliion, as the amount needed for federal match is estimated at $96 million. After the distribution to the State Trunk Line Fund, any remaining funds will then be distributed with 66% going to the county road commissions, and 34% going to cities and villages. This bill is now headed to the Governor’s desk for his signature.

Jason Mancini works for the Michigan Municipal League handling Transportation issues. He can be reached at 517-908-0303 or by email at [email protected]