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<TITLE>: ENACTED WITH VETOES (8-12-03) - FY 2003-04 TRANSPORTATION BUDGET</TITLE>

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<p>FY 2003-04 TRANSPORTATION BUDGET - S.B. <a name="3"></a>265 (PA 162 of 2003): ENACTED WITH VETOES</p>

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<div align="left">

<table width="720px" cellpadding="6" cellspacing="0">

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<td class="table1column1" width="81%" style="border-right: none; border-left: none; border-top: 0.04in double #7f7f7f; border-bottom: 0.04in double #7f7f7f" valign="top"><p><span style="font-weight: bold">FY 2002-03 Year-to-Date Gross Appropriation<span>.&#160;.&#160;.&#160;.&#160;.&#160;.&am p;#160;.&#160;.&#160;.&#160;.&#160;.&#160;.&#160;.&#16 0;.&#160;.&#160;.&#160;.&#160;.&#160;.&#160;.&#160;.&a mp;#160;.&#160;.&#160;.&#160;.&#160;.&#160;.&#160;.&# 160;.&#160;.&#160;.</span></span></p>

</td>

<td class="table1column2" width="19%" style="border-left: none; border-right: none; border-top: 0.04in double #7f7f7f; border-bottom: 0.04in double #7f7f7f" align="right" valign="top"><p><span style="font-weight: bold">$3,113,421,400</span></p>

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<tr>

<td class="table1column1" width="81%" style="border-right: none; border-bottom: none; border-left: none; border-top: none" valign="top"><p><span style="font-weight: bold">Changes from FY 2002-03 Year-to-Date:</span></p>

</td>

<td class="table1column2" width="19%" style="border-bottom: none; border-left: none; border-right: none; border-top: none" align="right" valign="top"><p>&#160;</p>

</td>

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<tr>

<td class="table1column1" width="81%" style="border-right: none; border-bottom: none; border-left: none; border-top: none" valign="top"><p><span style="text-decoration: underline">Items Included by the Senate and House</span></p>

</td>

<td class="table1column2" width="19%" style="border-bottom: none; border-left: none; border-right: none; border-top: none" align="right" valign="top"><p style="text-indent: 5.77083in; margin-left: -5.77083in">&#160;</p>

</td>

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<tr>

<td class="table1column1" width="81%" style="border-right: none; border-bottom: none; border-left: none; border-top: none" valign="top"><p style="text-indent: -0.291667in; margin-left: 0.291667in">&#160;1.<span>&#160;&#160;</span><span style="font-weight: bold"><span style="font-family: 'Arial', sans-serif">Debt Service. </span></span><span style="font-family: 'Arial', sans-serif">The budget includes a reduction associated with traditional State

Trunkline Fund bond refinancing and increases for Federal grant anticipation notes,

Comprehensive Transportation Fund bonds, and Economic Development Fund

bonds.</span></p>

</td>

<td class="table1column2" width="19%" style="border-bottom: none; border-left: none; border-right: none; border-top: none" align="right" valign="top"><p>2,643,600</p>

</td>

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<tr>

<td class="table1column1" width="81%" style="border-right: none; border-bottom: none; border-left: none; border-top: none" valign="top"><p style="text-indent: -0.291667in; margin-left: 0.291667in">&#160;2.<span>&#160;&#160;</span><span style="font-weight: bold"><span style="font-family: 'Arial', sans-serif">Transportation Grants to Other Departments. </span></span><span style="font-family: 'Arial', sans-serif">The budget appropriates

$41,791,100 in interdepartmental grants (IDGs) to other State departments/agencies

for transportation-related services provided to the Michigan Department of

Transportation (MDOT) a reduction from the FY 2002-03 level of $120,743,900. </span></p>

</td>

<td class="table1column2" width="19%" style="border-bottom: none; border-left: none; border-right: none; border-top: none" align="right" valign="top"><p>(78,952,800)</p>

</td>

</tr>

<tr>

<td class="table1column1" width="81%" style="border-right: none; border-bottom: none; border-left: none; border-top: none" valign="top"><p style="text-indent: -0.291667in; margin-left: 0.291667in">&#160;3.<span>&#160;&#160;</span><span style="font-weight: bold"><span style="font-family: 'Arial', sans-serif">State Trunkline Road and Bridge Construction.</span></span><span style="font-family: 'Arial', sans-serif"> The enacted budget figures

reflect the Governor&#8217;s budget recommendation and do not take into account revised

revenue estimates, statutory changes affecting MTF revenue, or budgetary decisions

affecting the distribution of revenue to road agencies.</span></p>

<p style="text-indent: -0.291667in; margin-left: 0.291667in"><span style="font-family: 'Arial', sans-serif"><span style="font-weight: bold"><i>*<span>&#160;&#160;&#160;&#160;&#160;</ span>The Governor vetoed the Federal bridge funding earmark for local bridges and

specific road project designations, totaling $7,725,000.</i></span></span></p>

</td>

<td class="table1column2" width="19%" style="border-bottom: none; border-left: none; border-right: none; border-top: none" align="right" valign="top"><p>40,944,800</p>

</td>

</tr>

<tr>

<td class="table1column1" width="81%" style="border-right: none; border-bottom: none; border-left: none; border-top: none" valign="top"><p style="text-indent: -0.291667in; margin-left: 0.291667in">&#160;4.<span>&#160;&#160;</span><span style="font-weight: bold"><span style="font-family: 'Arial', sans-serif">County Road Commissions.</span></span><span style="font-family: 'Arial', sans-serif"> The enacted budget under-appropriates MTF revenue

to county road commissions by $32,465,300</span>.</p>

</td>

<td class="table1column2" width="19%" style="border-bottom: none; border-left: none; border-right: none; border-top: none" align="right" valign="top"><p>39,551,700</p>

</td>

</tr>

<tr>

<td class="table1column1" width="81%" style="border-right: none; border-bottom: none; border-left: none; border-top: none" valign="top"><p style="text-indent: -0.291667in; margin-left: 0.291667in">&#160;5.<span>&#160;&#160;</span><span style="font-weight: bold"><span style="font-family: 'Arial', sans-serif">Cities and Villages.</span></span><span style="font-family: 'Arial', sans-serif"> The enacted budget under-appropriates MTF revenue to cities

and villages by $18,100,900.</span></p>

</td>

<td class="table1column2" width="19%" style="border-bottom: none; border-left: none; border-right: none; border-top: none" align="right" valign="top"><p>22,051,700</p>

</td>

</tr>

<tr>

<td class="table1column1" width="81%" style="border-right: none; border-bottom: none; border-left: none; border-top: none" valign="top"><p style="text-indent: -0.291667in; margin-left: 0.291667in">&#160;6.<span>&#160;&#160;</span><span style="font-weight: bold"><span style="font-family: 'Arial', sans-serif">Federal Aid to Locals.</span></span><span style="font-family: 'Arial', sans-serif"> The enacted budget contains $208,900,000 in Federal

funding to local road agencies.</span></p>

<p style="text-indent: -0.291667in; margin-left: 0.291667in"><span style="font-family: 'Arial', sans-serif"><span style="font-weight: bold"><i>*<span>&#160;&#160;&#160;&#160;&#160;</ span>The Governor vetoed the Federal bridge funding earmark for local bridges,

totaling $17,600,000.</i></span></span></p>

</td>

<td class="table1column2" width="19%" style="border-bottom: none; border-left: none; border-right: none; border-top: none" align="right" valign="top"><p>(24,232,000)</p>

</td>

</tr>

<tr>

<td class="table1column1" width="81%" style="border-right: none; border-bottom: none; border-left: none; border-top: none" valign="top"><p style="text-indent: -0.291667in; margin-left: 0.291667in">&#160;7.<span>&#160;&#160;</span><span style="font-weight: bold"><span style="font-family: 'Arial', sans-serif">UPTRAN Administration. </span></span><span style="font-family: 'Arial', sans-serif">The budget reflects an administrative cut of $1,738,800

and 19 FTEs in the Bureau of Urban and Public Transportation.</span></p>

</td>

<td class="table1column2" width="19%" style="border-bottom: none; border-left: none; border-right: none; border-top: none" align="right" valign="top"><p>(1,738,800)</p>

</td>

</tr>

<tr>

<td class="table1column1" width="81%" style="border-right: none; border-bottom: none; border-left: none; border-top: none" valign="top"><p style="text-indent: -0.291667in; margin-left: 0.291667in">&#160;8.<span>&#160;&#160;</span><span style="font-weight: bold">Local Bus Operating Grants. </span><span style="font-family: 'Arial', sans-serif">The budget includes an increase in the amount of

funding for local bus operating grants to transit agencies, from the current-year level

of $160,000,000.</span></p>

<p style="text-indent: -0.291667in; margin-left: 0.291667in"><span style="font-family: 'Arial', sans-serif"><span style="font-weight: bold"><i>*<span>&#160;&#160;&#160;&#160;&#160;</ span>The Governor vetoed Section 732 that provided reimbursement for school bus

transport by ferry service, totaling $20,000.</i></span></span></p>

</td>

<td class="table1column2" width="19%" style="border-bottom: none; border-left: none; border-right: none; border-top: none" align="right" valign="top"><p>1,680,000</p>

</td>

</tr>

<tr>

<td class="table1column1" width="81%" style="border-right: none; border-bottom: none; border-left: none; border-top: none" valign="top"><p style="text-indent: -0.291667in; margin-left: 0.291667in">&#160;9.<span>&#160;&#160;</span><span style="font-weight: bold">Economic Adjustments.</span> Adjustments for worker&#8217;s compensation and building

occupancy.</p>

</td>

<td class="table1column2" width="19%" style="border-bottom: none; border-left: none; border-right: none; border-top: none" align="right" valign="top"><p>(145,800)</p>

</td>

</tr>

<tr>

<td class="table1column1" width="81%" style="border-right: none; border-bottom: none; border-left: none; border-top: none" valign="top"><p style="text-indent: -0.291667in; margin-left: 0.291667in">10.<span>&#160;</span><span style="font-weight: bold">Early retirement savings. </span></p>

</td>

<td class="table1column2" width="19%" style="border-bottom: none; border-left: none; border-right: none; border-top: none" align="right" valign="top"><p>(4,825,800)</p>

</td>

</tr>

<tr>

<td class="table1column1" width="81%" style="border-right: none; border-bottom: none; border-left: none; border-top: none" valign="top"><p style="text-indent: -0.291667in; margin-left: 0.291667in">11.<span>&#160;</span><span style="font-weight: bold">Other. </span></p>

</td>

<td class="table1column2" width="19%" style="border-left: none; border-right: none; border-top: none; border-bottom: 0.0133333in solid" align="right" valign="top"><p>634,100</p>

</td>

</tr>

<tr>

<td class="table1column1" width="81%" style="border-right: none; border-left: none; border-top: none" valign="top"><p>Total Changes<span>.&#160;.&#160;.&#160;.&#160;.&#160;.&#1 60;.&#160;.&#160;.&#160;.&#160;.&#160;.&#160;.&#160;.& amp;#160;.&#160;.&#160;.&#160;.&#160;.&#160;.&#160;.& #160;.&#160;.&#160;.&#160;.&#160;.&#160;.&#160;.&#160; .&#160;.&#160;.&#160;.&#160;.&#160;.&#160;.&#160;.&am p;#160;.&#160;.&#160;.&#160;.&#160;.&#160;.&#160;.&#16 0;.&#160;.&#160;.&#160;.&#160;.&#160;.&#160;.&#160;.&a mp;#160;.&#160;.&#160;.&#160;.&#160;.&#160;.&#160;.</span ></p>

</td>

<td class="table1column2" width="19%" style="border-left: none; border-right: none; border-top: none" align="right" valign="top"><p>($2,389,300)</p>

</td>

</tr>

<tr>

<td class="table1column1" width="81%" style="border-right: none; border-left: none; border-top: 0.04in double #7f7f7f; border-bottom: 0.04in double #7f7f7f" valign="top"><p><span style="font-weight: bold">FY 2003-04 Enacted Gross Appropriation<span>.&#160;.&#160;.&#160;.&#160;.&#160;.&am p;#160;.&#160;.&#160;.&#160;.&#160;.&#160;.&#160;.&#16 0;.&#160;.&#160;.&#160;.&#160;.&#160;.&#160;.&#160;.&a mp;#160;.&#160;.&#160;.&#160;.&#160;.&#160;.&#160;.&# 160;.&#160;.&#160;.&#160;.&#160;.&#160;.&#160;.</span> </span></p>

</td>

<td class="table1column2" width="19%" style="border-left: none; border-right: none; border-top: 0.04in double #7f7f7f; border-bottom: 0.04in double #7f7f7f" align="right" valign="top"><p><span style="font-weight: bold">$3,111,032,100</span></p>

</td>

</tr>

<tr>

<td class="table1column1" width="81%" style="border-right: none; border-left: none; border-top: none; border-bottom: none" valign="top"><p><span style="font-weight: bold">* Vetoed by the Governor</span></p>

</td>

<td class="table1column2" width="19%" style="border-left: none; border-right: none; border-top: none; border-bottom: none" align="right" valign="top"><p>&#160;</p>

</td>

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<td class="table2column1" width="100%" style="border-left: none; border-right: none; border-top: none; border-bottom: 0.04in double #7f7f7f" valign="top"><p>FY 2003-04 <a name="2"></a>TRANSPORTATION BUDGET - BOILERPLATE HIGHLIGHTS</p>

</td>

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<tr>

<td class="table2column1" width="100%" style="border-bottom: none; border-left: none; border-right: none; border-top: none" valign="top"><p><span style="font-weight: bold">Changes from FY 2002-03 Year-to-Date:</span></p>

</td>

</tr>

<tr>

<td class="table2column1" width="100%" style="border-bottom: none; border-left: none; border-right: none; border-top: none" valign="top"><p><span style="text-decoration: underline">Items Included by the Senate and House</span></p>

</td>

</tr>

<tr>

<td class="table2column1" width="100%" style="border-bottom: none; border-left: none; border-right: none; border-top: none" valign="top"><p style="text-indent: -0.291667in; margin-left: 0.291667in">&#160;1.<span>&#160;&#160;</span><span style="font-weight: bold">Contingency Funds. </span>The budget does not include any contingency fund language.</p>

</td>

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<tr>

<td class="table2column1" width="100%" style="border-bottom: none; border-left: none; border-right: none; border-top: none" valign="top"><p style="text-indent: -0.291667in; margin-left: 0.291667in">&#160;2.<span>&#160;&#160;</span><span style="font-weight: bold">Construction Zone Traffic Law Enforcement.</span> The budget appropriates $500,000 to law enforcement

agencies for construction zone traffic law enforcement and the &#8220;Give &#8217;em a brake campaign&#8221; (Sec. 324).</p>

</td>

</tr>

<tr>

<td class="table2column1" width="100%" style="border-bottom: none; border-left: none; border-right: none; border-top: none" valign="top"><p style="text-indent: -0.291667in; margin-left: 0.291667in">&#160;3.<span>&#160;&#160;</span><span style="font-weight: bold">Bureau of Multi-Modal Services.</span> The budget requires the Bureau of Multi-Modal Transportation Services

to prepare a management plan, and to adhere to formal policies adopted by the State Transportation

Commission (Sec. 361).</p>

</td>

</tr>

<tr>

<td class="table2column1" width="100%" style="border-bottom: none; border-left: none; border-right: none; border-top: none" valign="top"><p style="text-indent: -0.291667in; margin-left: 0.291667in">&#160;4.<span style="font-weight: bold"><span>&#160;&#160;</span>Emergency Vehicle Signage. </span>Requires the Department to work with law enforcement agencies to

educate motorists regarding passing emergency vehicles (Sec. 362). </p>

</td>

</tr>

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<td class="table2column1" width="100%" style="border-bottom: none; border-left: none; border-right: none; border-top: none" valign="top"><p style="text-indent: -0.291667in; margin-left: 0.291667in">&#160;5.<span>&#160;&#160;</span><span style="font-weight: bold">Log Truck Safety Study.</span> Earmarks funds for a study through Michigan Technological University (Sec.

362).</p>

</td>

</tr>

<tr>

<td class="table2column1" width="100%" style="border-bottom: none; border-left: none; border-right: none; border-top: none" valign="top"><p style="text-indent: -0.291667in; margin-left: 0.291667in">&#160;6.<span>&#160;&#160;</span><span style="font-weight: bold">Full-Service Gas Stations.</span> Allocates $25,000 for the Department to assist veterans and disabled groups

in identifying full-service gas stations (Sec. 363).</p>

</td>

</tr>

<tr>

<td class="table2column1" width="100%" style="border-bottom: none; border-left: none; border-right: none; border-top: none" valign="top"><p style="text-indent: -0.291667in; margin-left: 0.291667in">&#160;7.<span>&#160;&#160;</span><span style="font-weight: bold">Federal Bridge Funding Earmark.</span> Earmarks 20% of Federal bridge funding to the Critical Bridge Fund

for local bridges (Sec. 405).</p>

<p style="text-indent: -0.291667in; margin-left: 0.291667in"><i><span style="font-weight: bold">*<span>&#160;&#160;&#160;&#160;&#160;</span> ;The Governor vetoed this section.</span></i></p>

</td>

</tr>

<tr>

<td class="table2column1" width="100%" style="border-bottom: none; border-left: none; border-right: none; border-top: none" valign="top"><p style="text-indent: -0.291667in; margin-left: 0.291667in">&#160;8.<span>&#160;&#160;</span><span style="font-weight: bold">Pavement Marking. </span>The budget directs the Department to use high quality marking materials, conduct

a pilot project , and supply a report (Sec. 611).</p>

</td>

</tr>

<tr>

<td class="table2column1" width="100%" style="border-bottom: none; border-left: none; border-right: none; border-top: none" valign="top"><p style="text-indent: -0.291667in; margin-left: 0.291667in">&#160;9.<span>&#160;&#160;</span><span style="font-weight: bold">Food Bank.</span> The House included a boilerplate appropriation of $369,500 for the Food Bank program. The

Conference Committee did not include this language.</p>

</td>

</tr>

<tr>

<td class="table2column1" width="100%" style="border-left: none; border-right: none; border-top: none; border-bottom: none" valign="top"><p style="text-indent: -1in; margin-left: 1in">&#160;10.<span>&#160;&#160;&#160;&#160;&#160 ;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#1 60;&#160;&#160;&#160;&#160;</span><span style="font-weight: bold">State Fair.</span> The House included language to restrict Michigan State Fair expenditures to the

amount included in the budget and prohibits the Department from covering costs of the Fair.

The Conference Committee concurred with this language (Sec. 810).</p>

</td>

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<br>

<p>Date Completed: <a name="4"></a>8-12-03 - Fiscal Analyst: <a name="5"></a>Craig Thiel</p>

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