DRAFT Summary of Proposed Revision to Act 51 of 1951 A successful state transportation-funding system must do three things: ‘+ Collect enough user fees to preserve the system the state is responsible for ‘+ Distribute fees to responsible agencies in proportion to users’ needs. + Require that fees be spent for the appropriate mix of projects. Act 61 Modifications to MTF Distribution Formula (Replaces former Sections 1c, 2, 3, 4, 5, 6, 7, 8, 9, 10, 10, 100, 12, and 13) The arbitrary percentage shares for STF, counties, and municipalities would bé abdlished. The annual mapping of county primary and local roads and city and village major and local streets ‘would be abolished. er Road-agenoy Funds Distribution Factors All agencies would first receive a base allocation, based on their. formula MTF distribution i in 2015 (before snow payments). ‘ For any revenue over that base allocation, the same distribution factors would be used for all three classes of road agency: MDOT, counties, and cities and'vllages: Federal Functional Class Bridge Deck Area ” Population Federal Functional Class Read jurisdiction would be unchanged, but a portion of funds from the MTF would be allocated based on each mile’s classification: ‘+ Interstate System ; ‘+ Other National Highway System (non- Interstate freeways, other principle arterials) ‘+ Other federat-aid-eligible toads (minor arterials and major collectors) + Local roads (minor, collectors and local) Bridge Deck Area Bridges are istributed unevenly among local jurisdictions, and for the first time, bridges would be included inthe Act 51 formula by bridge-deck for bridges over 20’ in length. Drawbridges ‘would be:excluded, being covered by a separate $5,000, 000/year appropriation in a 2016 act. Popitlation A portion of MTF funds would be awarded based on population to each county road agency and cities greater than 24,099 population. County road agencies would receive population funds based on the population within the county for al jurisdictions except those cities with greater than 24,999 population.Rationale for New Formula ~ simple, fair and efficient The goal of the new formula is to more closely match state road aid with the needs on each mile of state and local road, The current formula is very heavily weighted toward population. The proposed formula would still take population into account, but only for counties and medium or large cities (or townships) with population of 25,000 or more. City limits create accidents of geography that reward or penalize local agencies depending on population distribution, not traffic distribution. Because traffic moves freely between jurisdictions without regard for city limits, particularly between small cities and in ruratareas,-county roads carrying traffic between jurisdictions will receive the benefit of adjoining places’ population under this formula. Sy The population factor makes the formula sensitive to high-traffic, high-cost areas; population is a workable proxy for auto and truck VMT (which can only be estimated), resident-vehicle value, and transit ridership. oe Increased weight on centerline miles will make the formula less 6f.a per-capita revenue-sharing program, and more proportional to miles owned by each jurisdiction'and the importance of each road.