102nd Legislature, Weeks 57 and 58: The Conference Budget

Jun 27, 2024 — #MILegTransit

Fiscal Agency Summaries

House Fiscal Agency Budget Summary

Senate Fiscal Agency Budget Summary

Local Bus Operations Funding

Changes At a Glance

Note that while sustained funding increased by $10M, total funding for FY2024-25 decreased by $15M due to only a partial renewal of one-time American Rescue Plan Act (ARPA) funds allocated last year.

Narrative

Public transit funding is split into two major buckets: Operations funding and capital funding. LBO is the operations component in the Michigan budget, used by transit providers to maintain existing service, pay bus drivers, and keep the lights on in general. Capital funding is for infrastructure projects – buying new buses, upgrades like dedicated lanes and transit signal priority at intersections, building new stations, installing bus shelters, and so on.

In Michigan, with the exception of the QLINE and the Detroit People Mover, all of our local transit providers are exclusively bus-based. Operations makes up the majority of their budgets, especially in rural communities. (Our three Amtrak routes are supported through a separate, dedicated channel within MDOT.)

LBO received a total of $246.75M in funding in the FY2024-25 conference budget, down from $261.75M in last year's budget but a $25M overall increase from the Whitmer administration's recommendation this year .

In 2023, $45M in one-time American Rescue Plan Act (ARPA) funds were secured to facilitate the large increase in operating assistance. This year, $20M in one-time ARPA funding was secured, a new addition from conference (as the House’s initial proposal of $25M in one-time funding was appropriated from state dollars).

Baseline operations funding saw only a $10M increase this year, while it saw a $15M increase in 2023. $5M of this year's increase in baseline funding was shifted from transit capital funding, which still saw a net increase after this reallocation as it is primarily supported with federal dollars from the Infrastructure Investment and Jobs Act.

E-Bike Incentive Funding

HB 4491 , the e-bike incentive bill, was favorably reported from committee last month and has now secured $2.95M in state funding, a huge step forward following its exclusion from the budget last year. This fall, the bill is expected to pass through the state legislature with the incentive program starting in 2025.

Supplemental Earmarks

Other miscellaneous transit projects across Michigan which received dedicated funding include but are not limited to:

• $1M for SMART bus stops and shelters (a Critical Infrastructure Project grant)
• $1M for Durand Union Station, Inc.
• $5M for CATA facility improvements in Lansing
• Various allocations for rail trails and other non-motorized trails including Detroit, Ann Arbor, Wyoming, and Shiawassee County

Beyond the Budget

The last week of legislative session before summer recess saw a flurry of activity, with movement on over 100 bills. Here's a (brief!) summary of transit-adjacent actions.

Transit Worker Safety

House Bill 4917 and House Bill 4918 were reported favorably from the Senate Committee on Civil Rights, Judiciary, and Public Safety on Tuesday, June 25th and are now awaiting final passage on the Senate floor. First introduced in July 2023, these bills would increase civil penalties for assault of a bus driver, streetcar operator, or railroad crew member.

Car Exhaust Noise Restrictions

House Bill 5696 , introduced in April and favorably reported from the House Committee on Transportation, Mobility and Infrastructure, would increase fines for vehicles operating on a public roadway with an illegally modified exhaust system. The bill was placed on third reading during session Wednesday, but due to time restrictions a floor vote was postponed. Expect further action on this bill in the fall.

Speed Limit Enforcement in School Zones

House Bill 4921 , introduced last July and reported from the Committee on Local Government and Municipal Finance this past May, passed the House on Thursday, June 27th and transmitted to the Senate for consideration this fall. The bill would allow local authorities to install speed detecting systems in school zones, including, with the permission of MDOT, state highways. Any such detection system would be publicly announced prior to its activation.

E-Bikes on Mackinac Island

Senate Bill 682 , which would allow Mackinac Island to set speed limits on M-185, passed the House on Tuesday, June 18th with immediate effect and was presented to the Governor on Thursday, June 27th. It is possible, though not yet explicitly confirmed, that this legislation will now permit the operation of bikes regardless of classification, including e-bikes, on the island under condition that cyclists maintain 15mph or less around the island, and 10mph or less within the central business district. A statement from Mackinac Island authorities can be expected in the coming weeks.

Advocates: What's next?

For now, our focus is on whether the SOAR reform package will be revisited this fall, and more importantly, whether we maintain the trifecta in November following the re-election of every House seat.

In the meantime: Look local. Providers across the state are seeking public input on service redesigns and expansions this summer and into this fall. I'll be sharing meetings as they're scheduled on the blog calendar , so be sure to follow along!

The legislative coverage will return this fall. Until then, I'll see you in transit. 🚌