HomeMy WebLinkAboutResolutions - 2001.09.06 - 26685MISCELLANEOUS RESOLUTION #01236
BY: Commissioner Lawrence A. Obrecht, District #3, and Commissioner Chuck Moss, District #15
RE: Board of Commissioners — Transportation Economic Development Fund
TO: Oakland County Board of Commissioners
Chairperson, Ladies and Gentlemen:
WHEREAS, the Michigan Transportation Economic Development Fund was created in 1987 to support
state and local transportation projects to enhance economic development and alleviate traffic congestion.
The legislature recognized these needs by establishing a state-wide grant program known as Category A,
an urban congestion program to address the needs of the five largest counties of Wayne, Oakland,
Macomb, Kent and Genesee known as Category C, and a rural economic development program for the
remaining 78 counties to identify and build an all-season road network that would benefit small
businesses, agriculture and tourism in this state known as Category D; and
WHEREAS, in a letter, dated May 1, 2000 to the legislature by the Director of the Michigan Department
of Management an Budget, Building Michigan III projects funded by Category A grants was to be paid
for with the sale of state bonds and the debt service for those bonds paid entirely with Category A funds;
and
WHEREAS, the legislature passed legislation implementing Building Michigan III with the
understanding that local transportation economic development funds in Categories C and D would not
be used; and
WHEREAS, the Governor's proposed 2001/2002 transportation budget attempted to take Category C
and D funds to help pay the debt service for bonds sold to complete Category A economic development
road projects. The legislature overwhelmingly rejected that proposal by restoring the funding to
Categories C and D and returning the debt service for Build Michigan III to Category A. The legislature
followed the budget with the introduction of House Bill 4825 to amend the Transportation Economic
Development Act of 1987 and protect county road commission funding in Categories C and D from
future efforts to divert these funds for state debt service; and
WHEREAS, the Governor's transportation budget veto message to the legislature states that he intends
to ignore the budget actions taken by the House and Senate and is directing the Michigan Department of
Transportation to take county road funding from Categories C and D to pay one half of the Build
Michigan III debt service; and
WHEREAS, this action will cause the Road Commission for Oakland County to lose $700,040 annually
in economic development funds for transportation and cause local road projects that are important to
economic development and public safety to be delayed or halted.
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NOW THEREFORE BE IT RESOLVED that the Oakland County Board of Commissioners urges our
state legislators to continue their support of protecting local transportation funds from these types of
raids by opposing any efforts to transfer Transportation Economic Development Funds in Categories C
and D to the State's Category A program for state debt service and pass House Bill 4825 upon their
return to session this fall.
Chairperson, we move the adoption of the foregoing Resolution.
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wrence A. Obrecht, Commissioner, District #3 Chuck Moss, Commissioner, District #15
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Resolution #01236 September 7, 2001
The Chairperson referred the resolution to the General Government
Committee. There were no objections.