Legislative Analysis
Phone: (517) 373-8080
TRANSPORTATION ECONOMIC DEVELOPMENT FUND:
http://www.house.mi.gov/hfa
POPULATION THRESHOLDS FOR CATEGORY C
Analysis available at
House Bill 5922 as introduced http://www.legislature.mi.gov
Sponsor: Rep. Jaime Greene
Committee: Transportation, Mobility and Infrastructure
Revised 10-1-24
SUMMARY:
House Bill 5922 would amend section 11 of 1987 PA 231, the act that created and governs the
Transportation Economic Development Fund (TEDF). Specifically, the bill would adjust
population thresholds that govern the distribution of one of the five TEDF categorical
programs, the Urban Congestion Relief Program, also referenced as “Category C.”
Under section 11, funds for this category are suballocated to five urban counties (Wayne,
Oakland, Macomb, Genesee, and Kent), based on population. Changes in county populations
reported in the 2020 census would affect this statutory suballocation of Category C funds.
Specifically, the increase in Kent County’s population would move it out of a suballocation
distribution category it now shares with Genesee County and into a category it would share
with Macomb County, as shown in the table on page 2. The bill would adjust the population
references to maintain the current distribution percentages among the five counties.
MCL 247.911
BACKGROUND:
The TEDF is a state restricted transportation fund created to help fund highway, road, and street
improvements related to either a specific type of economic activity or a specific type of road
system. There are five categorical programs within the TEDF, including Category C, which is
designated for projects to reduce congestion on county primary and city major streets within
urban counties including advanced traffic management systems. The act defines urban counties
to mean Michigan counties with a population greater than 400,000.
For FY 2024-25, the appropriation for TEDF Category C was $10.4 million.
FISCAL IMPACT:
The bill would have no impact on state costs or revenues and would have no fiscal impact on
local units of government generally. The bill would maintain the current distribution of TEDF
Category C funds among five specific urban counties.
If the bill were not enacted, the Michigan Department of Transportation (MDOT) would have
to adjust the distribution of Category C funds among the five urban counties to reflect the 2020
census, as described in the table below (based on FY 2022-23 appropriations).
House Fiscal Agency Page 1 of 3
 Category C distribution County population County and how affected by 2020
census if HB 5922 is not enacted
Population Percentage 2010 2020
threshold of C funds
1,750,000 or 16% 1,820,584 1,793,561 Wayne County – no change in
more distribution category or percentage
1,000,000 to 40% 1,202,362 1,274,395 Oakland County – no change in
1,749,999 distribution category or percentage
650,001 to 20% 840,978 881,217 Macomb County – no change in
999,999 distribution category, but would share
(current law) the category with Kent County,
effectively reducing Macomb
700,000 to
County’s distribution by 50%, or
999,999
approximately $1.0 million
(HB 5922)
400,000 to 24% 602,622 657,974 Kent County – would move from the
650,000 24% distribution category (currently
(current law) shared with Genesee County) into the
20% distribution category with
400,000 to
Macomb County, effectively reducing
699,999
Kent County’s distribution by
(HB 5922)
approximately $200,000
425,790 406,211 Genesee County – would stay in the
24% distribution category, but would
no longer share the category,
effectively increasing Genesee
County’s distribution by
approximately $1.2 million
It should be noted that, despite the use of the word “distribution” above, TEDF Category C
funds are not literally distributed to these five urban counties. That is, the appropriation of
Category C funds, and the suballocation to the five urban counties, does not result in the
transfer of money from the TEDF to those counties. Instead, each county’s allocated share of
Category C funding represents the amount of TEDF Category C funds available for eligible
projects within that county. 1 In coordination with MDOT’s Office of Economic Development,
MDOT’s Bureau of Finance and Administration maintains an accounting of Category C funds
allocated to each county. A county’s allocated funding may carry over into subsequent fiscal
years.
1
https://www.michigan.gov/mdot/programs/grant-programs/transportation-economic-development-fund/category-c-
urban-congestion-relief
House Fiscal Agency HB 5922 as introduced Page 2 of 3
 Eligible local road agencies within each county may develop projects meeting specific
statutory eligibility requirements and submit those projects for inclusion in the applicable local
Metropolitan Planning Organization’s Transportation Improvement Plan (TIP).
Projects meeting specific eligibility criteria may be on a primary road under county road
commission jurisdiction or a major street under city jurisdiction. (County primary roads and
city major streets are defined in 1951 PA 51.) To be eligible for Category C funding, the road
or street must also be eligible for federal aid.
After projects are approved for inclusion in the TIP and move to the construction phase, MDOT
administers the project construction contract and pays for eligible project costs by drawing on
the applicable county’s share of TEDF Category C funds. Money is never transferred to the
local road agency. Upon project completion, the local road agency records the increase in asset
value, as identified by MDOT, in its accounting records.
Fiscal Analyst: William E. Hamilton
■ This analysis was prepared by nonpartisan House Fiscal Agency staff for use by House members in their
deliberations and does not constitute an official statement of legislative intent.
House Fiscal Agency HB 5922 as introduced Page 3 of 3


Statutes affected:
House Introduced Bill: 247.911
As Passed by the House: 247.911
As Passed by the Senate: 247.911
House Concurred Bill: 247.911