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New Road Funding Requirements For Locals Passes Senate Committee

Posted on November 27, 2012 by Dene Westbrook

The SenateTransportation Committee passed HB 5302. This bill creates so-called “best practice” requirements for local road agencies. It would require that road agencies comply with PA 152 (health care 80/20 or hard caps). It also requires that the transportation employee compensation plans meet prescribed conditions regarding employer retirement contributions, defined benefit pension multipliers, and employee health care cost-sharing. Any road agency that does not make the required certification can have all or part of their Michigan Transportation Fund dollars withheld. Finally, the local road agency must maintain a public website containing specific information. The League testified in opposition to this legislation on the grounds that healthcare and reporting requirements laid out in this bill are duplicative of what is currently being asked of local units of government in order to receive EVIP funds under PA 152.  This information is already being submitted to Treasury, and this just creates more bureaucratic hoops for local units of government to jump through in order to get the road funding they would otherwise be able to receive.  The bill now goes to the House floor for consideration.

Nikki Brown is a Legislative Associate for the League handling economic development issues.  She can be reached at nbrown@mml.org or 517-908-0305.

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