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 5946 as introduced http://www.legislature.mi.gov
Sponsor: Rep. Denise Mentzer
Committee: Transportation, Mobility and Infrastructure
Complete to 9-25-24
SUMMARY:
House Bill 5946 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 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 2
 Category C distribution County population County and how affected by 2020
census if HB 5946 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 5946)
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 5946)
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
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 5946 as introduced Page 2 of 2


Statutes affected:
House Introduced Bill: 247.911