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HomeMy WebLinkAboutResolutions - 1974.02.14 - 15068Miscellaneous Resolution 6567 January 24, 1974 BY: TRANSPORTATION •& AVIATION COMMITTEE - E. Frank Richardson, Chairman IN RE: SUPPORT OF CONCEPT OF PROPOSED ROAD COMMISSION LEGISLATION TO THE OAKLAND COUNTY BOARD OF COMMISSIONERS Mr. Chairman, Ladies and Gentlemen: WHEREAS your Committee has considered a plan for proposed legislation as presented by the Oakland County Board of Road Commissioners that would provide the County with funds from the State general fund generated by the increase in sales tax from the sale of gasoline; and WHEREAS, with the concurrence of the Legislative Committee, your Committee recommends support of the concept of such proposed legislation; NOW THEREFORE BE IT RESOLVED that the Oakland County Board of Commissioners hereby supports the concept of the plan for proposed legislation, as presented by the Oakland County Board of Road Commissioners, that would provide the County with funds from the State general fund generated by the increase in sales tax from the sale of gasoline, copy of which is attached hereto. BE IT FURTHER RESOLVED that the County of Oakland seek the support of ichigan Association of Counties for the concept of the said proposed legislation. The Transportation & Aviation Committee, by E. Frank Richardson, Chairman, moves the adoption of the foregoing resolution. TRANSPORTATION & AVIATION COMMITTEE the E. Frank Rienardson, Chairman COM1,4?5 ,,IT0W7R RICHARDS• CRPoRmArd FRAZER W. STAN'AN, Vc CI ,AIRvAN FRED L. HARRIS, Comk-nsto ,../ER January 8, 1974 R. C. WORLAND StCRETA ,,v CLERK 4r TN!: noAqt, PAUL VAN 7,0<9;• ENCtNr.C11- JOHN L. GRUSBA„ DMit‘-rON L. v.). Ass.sranT civm. couNsEL • • LthLJ C077.!•771.' OAM—ANC) COUNTY 2420 PDNI-IAC LAv, rioAri ONT1AC, MfCHIGAN 48054 rtotnro.. B-4571 The Hon. William G. 1VILIliken Executive Office State Capital Building Lansing, Michigan . . . Dear Sir: The absence of adequate public transportation systems in Michigan leaves the motor vehicle as the primary and essential mode of personal and commercial transportation for the near-term future. In spite of the energy crisis and resulting curtailment of travel, I am sure you agree that the need remains for providing and maintaining adequate road facilities. Like most other areas of economic activit,-, the functions of road con- struction aild maintenance in our state face significant cutbacks as a direct result of the gasoline shortage. This cutback will reflect and be caused by shortfalls in the anticipated level of the Motor Vehicle Highway Fund which relies importantly on gasoline tax collections and which is the primary source of road funds for the state and its component political subdivisions. Because of curtailed supplies of gasoline, the dollar amount of gasoline tax collections in 1974 promises to be substantially less than ha.d been estimated. It is our understanding that original projections of gasoline tax collections for 1974 were predicated on assumed sales volume of 4. 5-billion gallons. That projected sales volume has now been adjusted downward to 3. 94-billion gallons in the face of the gasoline shortage. • - Accordingly, the Vehicle Highway Fund stands to collect $53, 230,000 less in gasoline tax revenue than had been projected prior to the energ7 crisis. This dollar loss will be felt across the board in road buildin and maintenance -- by the Michigan Department of State Highways and Transportation, by the cities and villages, and, of course, by the 83 county road commissions. The Oakland County Road Commission, alone, will lose an. estimated $1,864, 000 as a direct consequence of the energy crisis. Road commissions of the smaller counties will-lose an even larger percentage of their anticipated revenue. The purpose of this letter is to ',propose for your consideration -- and that of the legislature -- an equitable means of partially offsetting the loss of read ft'..r..d stemming from the energy crisis. continued... •) ro il. William G. Milliken, January 8, 1974 page two Let us consider the sales tax on gasoline. Had gasoline pump prices -remained at the level of 35-39C per gallon through 1974, gasoline sales would have generated approximately $39, 450,000 in sales tax receipts. An average 1974 pump price average as high as 65C now seems likely, however, in light . of recent price increases approved by the Federal government and predictions •-(eming from Federal officials. At an average price of 65C a gallon, 1974 gasoline sales of 3. 94-billion would yield sales tax collections of $73,900, 000. Half of that amount, --- $39, 450,000, could properly be regarded as a windfall arising solely from Scarcity-generated retail price - increases. By constitutional provision,. - the School _Aid Fund would reap benefits of $19,725, 000 from this windfall, and ...An additional $4, 931, 250 would go to .municipalities. The remainder would enrich the State General Fund. . I do not propose that funds constitutionally earmarked for schools and municipalities be distburbed. I do, however, propose a partial offset of the shortfall in funds for road purposes through appropriation by the legislature of all sales tax collected on gasoline sales -- excluding the portions earmarked • for—s .Cneer s a. inunicipat otor Vehicle Highway Fund for the duration of the energy crisis, to be distributed as the Fund is currently distributed. The effect would be to recapture for road purposes. just over half of the anticipated funding that will be lost because of the energy crisis. In dollars, - this proposal would restore approximately $27,616, 000 of the shortfall of - $53, 230,000 in the Highway Fund. In the case of Oakland County Road Commission, the proposal would restore only about $963,525 of our anticipated shortfall of $1, 864, 000. Road commissions in the smaller counties would fare proportionately better, compared with their 1973 receipts from the Vehicle Highway Fund. Similarly, • cities and villages would also find their road fund losses partially offset. I respectfully urge your earnest consideration of this proposal. Additionally, I propose that you consider establishing a.representative - task force to review options and alternatives available for adequate road -financing for the duration of the energy crisis. Very truly yours, BOARD OF COUNTY ROAD COIVIlaSSIONERS OF OAKLAND COUNTY By William M. Richards Chairman February 14, 1974 #6567 Moved by Richardson supported by Perinoff the resolution be referred back to the Transportation C— 7 Moved by Dearborn supported by Perinoff the resolution be also referred back to the Legislative Committee, The Chairman referred the resolution to the Transportation and Aviation Committee and the Legislative Committee, There were no objections