FY 2024-25: DEPARTMENT OF TRANSPORTATION
Summary: As Passed by the House
House Bill 5517 (H-1)
Analyst: William E. Hamilton
Difference: House
FY 2023-24 From FY 2023-24
Enacted FY 2024-25 FY 2024-25 FY 2024-25 FY 2024-25 Enacted
as of 2/7/24 Executive House Senate Conference Amount %
IDG/IDT $4,353,000 $4,316,700 $4,316,700 $ $ ($36,300) (0.8)
Federal 2,149,121,400 2,253,675,100 2,253,675,100 104,553,700 4.9
Local 85,773,500 87,448,500 87,448,500 1,675,000 2.0
Private 16,800,000 18,800,000 18,800,000 2,000,000 11.9
Restricted 4,082,402,000 4,232,048,900 4,327,048,900 244,646,900 6.0
GF/GP 288,100,000 185,000,000 170,000,000 (118,100,000) (41.0)
Gross $6,626,549,900 $6,781,289,200 $6,861,289,200 $ $ $234,739,300 3.5
FTEs 3,224.3 3,228.3 3,228.3 4.0 0.1
Note: Appropriation figures for FY 2024-25 include all proposed appropriation amounts, including amounts designated as "one-
time." FY 2023-24 "Enacted" figures do not include $3.9 million GF/GP supplemental appropriation for Critical Infrastructure
Projects made in HB 4292, signed by the Governor December 18, 2023, but not effective until February 14, 2024.
Overview
The state transportation budget supports state and local highway programs, public transportation programs, aeronautics
programs, and administration of the Michigan Department of Transportation (MDOT). Historically, two-thirds of the
revenue in this budget has come from state restricted revenue, with approximately one-third from federal sources. State-
restricted revenue in this budget includes revenue from motor fuel taxes, vehicle registration taxes, and from a $600.0
million earmark of Income Tax Act revenue. Approximately $3.7 billion in state restricted revenue is first credited to the
Michigan Transportation Fund (MTF) and then distributed in accordance with 1951 PA 51 ("Act 51") to other state
transportation funds and programs, including the State Trunkline Fund (STF), the Comprehensive Transportation Fund
(CTF), and local road agencies (county road commissions and cities/villages). Revenue from aviation fuel and registration
taxes, as well as a portion of Airport Parking Tax revenue, is credited to the State Aeronautics Fund for aeronautics
programs. Federal funds for transportation programs are authorized under the federal Infrastructure Investment and Jobs
Act (IIJA).
FY 2023-24 FY 2024-25
Enacted House
Major Budget Changes from FY 2023-24 Enacted Appropriations (as of 2/7/24) Change
1. Debt Service Gross $343,740,100 ($3,036,400)
Executive includes $340.7 million for debt service, $3.0 million less than Restricted 343,740,100 (3,036,400)
current year. Debt service is primarily based on debt service schedules GF/GP $0 $0
for previously issued and outstanding bonds, including STF Rebuilding
Michigan bonds issued in 2020, 2021, and 2023. Debt service also
includes estimated debt service on remaining Rebuilding Michigan
bonds the department anticipates issuing in late 2024. House concurs
with Executive.
2. Transportation Asset Management Council Gross $1,876,400 $423,600
Executive increases baseline support by $423,600 MTF for increased Restricted 1,876,400 423,600
data collection and information technology costs. House concurs with GF/GP $0 $0
Executive.
3. Finance, Contracts, Support Services – MICARS Support Gross $27,123,200 $156,200
Executive includes $270,000 STF increase for MICARS cash IDG 4,353,000 (113,800)
receipt/accounts receivable system; reduces IDG support by $113,800 Restricted 22,770,200 270,000
to better reflect service costs; net adjustment totals $156,200 Gross. GF/GP $0 $0
House concurs with Executive.
House Fiscal Agency 1 5/9/2024
 FY 2023-24 FY 2024-25
Enacted House
Major Budget Changes from FY 2023-24 Enacted Appropriations (as of 2/7/24) Change
4. Transportation Planning Services FTE 145.0 0.0
Executive recognizes $2.0 million increase in federal Statewide Planning Gross $42,843,800 $2,000,000
and Research (SPR) funds. House concurs with Executive. Federal 24,000,000 2,000,000
Restricted 18,843,800 0
GF/GP $0 $0
5. State Trunkline Maintenance FTE 909.7 0.0
Executive increases baseline STF support by $17.9 million: $12.8 million Gross $466,088,700 $17,878,700
is related to increased cost of maintenance materials; $5.1 million is for Restricted 466,088,700 17,878,700
contract services, including contract state trunkline maintenance GF/GP $0 $0
performed by county road agencies. House concurs with Executive.
6. State Trunkline Road and Bridge Capital Program Gross $1,494,482,900 $123,409,800
Executive includes $123.4 million increase for the capital State Trunkline Federal 1,195,230,900 76,542,800
Road and Bridge Construction line item. This reflects a $76.5 million Local 30,003,500 0
increase in estimated federal funds made available under IIJA, and a net Private 10,000,000 0
increase in state restricted funds of $46.9 million: available STF revenue Restricted 259,248,500 46,867,000
increases by $48.5 million while Blue Water Bridge Fund (BWBF) GF/GP $0 $0
support would decline by $1.6 million. House concurs with Executive.
7. MTF to Local Road Agencies Gross $1,949,687,800 $100,991,500
Executive includes $2.051 billion in estimated MTF distribution to local Restricted 1,949,687,800 100,991,500
road agencies (county road commissions, and cities and villages), GF/GP $0 $0
$101.0 million more than the current year. This reflects the Act 51
distribution of estimated MTF revenue from motor fuel and vehicle
registration taxes as well as local road agency share of $600.0 million
earmarked for road and bridge programs in the Income Tax Act, and the
local agency share of an earmark of the excise tax on recreational
marijuana. The actual distribution will be based on actual MTF revenue
collections. House concurs with Executive.
Increases in estimated MTF revenue reflect anticipated increases in
motor fuel tax revenue due to the indexing of the motor fuel tax rate,
increases in estimated vehicle registration taxes, and increases in
revenue from the earmark revenue from the excise tax on recreational
marijuana.
8. Local Bridge Fund/Program Gross $27,398,500 ($483,800)
Executive decrease of $483,800 MTF reflects lower per-penny yield of Restricted 27,398,500 (483,800)
the motor fuel tax on gasoline. The Local Bridge Fund/Program receives GF/GP $0 $0
two statutory earmarks of MTF revenue: a fixed amount of $5.0 million,
and revenue equal to one-half cent of motor fuel tax revenue. House
concurs with Executive.
9. Movable Bridge Fund Gross $6,016,600 $150,500
Executive recognizes inflation adjustment of $150,500 MTF pursuant to Restricted 6,016,600 150,500
statute. The Movable Bridge Fund was established through a 2016 GF/GP $0 $0
amendment to Act 51 to provide targeted funding for operation of publicly
owned movable bridges in Michigan – 12 on the state trunkline system
and 12 owned by local road agencies (8 separate jurisdictions). The
earmark, originally $5.0 million, is indexed for inflation. House concurs
with Executive.
10. Local Federal Aid and Road and Bridge Gross $384,987,800 $26,181,000
Executive recognizes $26.2 million increase in federal-aid highway funds Federal 384,987,800 26,181,000
available for local road agency federal-aid projects. The increase reflects GF/GP $0 $0
additional federal funds made available to Michigan under IIJA as
allocated to local road agencies in accordance with Act 51. House
concurs with Executive.
House Fiscal Agency 2 5/9/2024
 FY 2023-24 FY 2024-25
Enacted House
Major Budget Changes from FY 2023-24 Enacted Appropriations (as of 2/7/24) Change
11. Blue Water Bridge Operations FTE 44.0 3.0
Executive increases baseline support by $515,800 BWBF, and Gross $7,152,700 $515,800
authorizes a 3.0 FTE position staffing increase, for bridge operations and Restricted 7,152,700 515,800
maintenance. House concurs with Executive. GF/GP $0 $0
12. Transportation Economic Development Fund (TEDF) Gross $55,369,000 ($2,642,700)
Executive includes $52.7 million restricted TEDF support, a decrease of Restricted 55,369,000 (2,642,700)
$2.6 million. The decrease reflects a reduction in estimated driver's GF/GP $0 $0
license fee revenue earmarked to the TEDF as well as reduced interest
on the TEDF balance. The TEDF program is a targeted transportation
program established and governed by statute, 1987 PA 231. House
concurs with Executive.
13a. Local Bus Operating – Baseline CTF Funding Gross $216,750,000 $12,500,000
Executive includes a $5.0 million baseline increase in CTF funding. As Restricted 216,750,000 12,500,000
described in Item 13b below, FY 2023-24 also included $45.0 million in GF/GP $0 $0
federal American Rescue Plan (ARP) COVID-19 relief funds as a one-
time appropriation. House includes a $12.5 million baseline increase -
$7.5 million more than the Executive by shifting $7.5 million from Transit
capital. As shown in Item #13c, below, House also includes one-time
funding of $25.0 million GF/GP.
13b. Local Bus Operating – Federal ARP Funds (One-Time) Gross $45,000,000 ($45,000,000)
Executive removes $45.0 million one-time appropriation of federal ARP Federal 45,000,000 (45,000,000)
funding for local bus operating assistance. House concurs with GF/GP $0 $0
Executive.
13c. Local Bus Operating – One-Time GF/GP Gross $0 $25,000,000
House includes $25.0 million GF/GP in one-time support for local bus GF/GP $0 $25,000,000
operating.
14. Transit Programs – Non-Urban Operating/Capital Gross $39,845,600 $780,900
Executive includes $40.6 million for federal non-urbanized area formula Federal 37,845,600 780,900
grants under 49 USC 5311, an increase of $780,900 in federal funds Local 2,000,000 0
reflecting estimated increase in federal grants available to Michigan GF/GP $0 $0
under IIJA. House concurs with Executive.
15. Transit Capital Gross $222,717,500 $29,425,800
Executive includes $36.9 million increase. Increase represents $22.4 Federal 121,641,400 22,425,800
million in additional federal aid made available to Michigan under IIJA, Local 31,000,000 0
as well as $14.5 million CTF available from the CTF fund balance. This Private 2,000,000 0
line item represents federal transit capital grant programs and related Restricted 68,076,100 7,000,000
state, local, and private matching funds. House recognizes $22.4 million GF/GP $0 $0
of increased federal funding and includes $7.0 million CTF baseline
increase - $7.5 million less than the Executive; House shifts $7.5 million
to Local bus operating as shown in Item #13a above.
16. Service Initiatives Gross $18,681,600 $2,120,400
Executive includes $2.1 million Gross net increase. Increase recognizes Federal 9,327,200 186,500
additional federal and local funds; includes $2.0 million in private funds; Local 325,000 1,675,000
reduces baseline CTF support by $1.7 million. House concurs with Private 0 2,000,000
Executive. Restricted 9,029,400 (1,741,100)
GF/GP $0 $0
17. Specialize Services Gross $30,312,400 $262,500
Executive recognizes $262,500 increase in estimated federal grant Federal 13,127,400 262,500
funding. Gross appropriation for public transportation program targeted Local 4,185,000 0
for elderly and disabled populations would total $30.6 million. House Restricted 13,000,000 0
concurs with Executive. GF/GP $0 $0
House Fiscal Agency 3 5/9/2024
 FY 2023-24 FY 2024-25
Enacted House
Major Budget Changes from FY 2023-24 Enacted Appropriations (as of 2/7/24) Change
18a. Rail Operations and Infrastructure Gross $137,687,700 $14,501,500
Executive includes $14.5 million increase in baseline CTF support from Federal 30,000,000 0
available CTF fund balance. House concurs with Executive. As Local 100,000 0
described in Item 18b below, FY 2023-24 also included $14.9 million Private 2,000,000 0
CTF as a one-time appropriation. Restricted 105,587,700 14,501,500
GF/GP $0 $0
18b. Rail Operations and Infrastructure (One-Time) Gross $14,900,000 ($14,900,000)
Executive removes $14.9 million CTF included as one-time in FY 2023- Restricted 14,900,000 (14,900,000)
24. House concurs with Executive. GF/GP $0 $0
19. Marine Passenger Service Gross $5,152,000 $15,053,000
Executive recognizes $15.1 million increase in federal grants available Federal 2,652,000 15,053,000
to Michigan under IIJA. This line item that provides capital assistance to Local 500,000 0
eligible public ferry services in Michigan. House concurs with Executive. Restricted 2,000,000 0
GF/GP $0 $0
20. Capital Outlay - Airport Improvement Program (AIP) Gross $179,983,500 $3,647,700
Executive recognizes $3.6 million increase in state restricted State Federal 155,000,000 0
Aeronautics Fund revenue for program of capital assistance to eligible Local 17,500,000 0
local public airports in the state. This increase would come, in part, from Private 2,000,000 0
a proposed increase in the state aircraft registration fee. The Gross Restricted 5,483,500 3,647,700
appropriation total of $183.6 million is supported by federal AIP funds, GF/GP $0 $0
as well as state restricted, local, and private funds. This program is
shown in t