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State Law, Public Act 51, specifically states that cities, villages, County Road Commissions and the Michigan Department of Transportation (MDOT) have jurisdiction over the roads.  That means those government agencies are responsible for building and maintaining the roads within their jurisdictions.

Public Act 51 was first enacted in 1951 and most recently amended in July 1998.  It specifies the transportation funding formula used to distribute transportation dollars to agencies in the State of Michigan.

It may come as a surprise to learn that the Road Commission has NO  taxing authority.The largest source of income for roads in Michigan is the state gasoline tax and vehicle registration fees.  This money makes up the Michigan Transportation Fund (MTF).

The Road Commission gets about 50% of all funding for roads and bridges from MTF funds. These funds provide the means for all maintenance, equipment, buildings, required match for grants, permits required, and other operational expenses.  When the price of gasoline goes up, the tax paid per gallon of gas remains the same.  Motorist purchase less gas, therefore less money is generated for the Road Commission.

 Approximately 30% of all revenue received is Federal Aid dollars.  These are project specific dollars and cannot be used for routine maintenance or operations.   These funds are usually grants which require 20-50% local match.

   
   

About 13% of our budget is from our MDOT Maintenance Contract.   This money is used to maintain US31, M20, M120 and other MDOT roads in Oceana County.  These funds cover the cost of maintaining only  MDOT roads.

Lastly, only about 8% of our total revenue is generated locally and comes from charges for requested services provided and permit fees.  The fees charged cover the exact cost incurred without any profit.

The Road Commission does not receive any money from property taxes.

The bulk of Road Commission funds are directed towards snow removal, salt, fuel, equipment maintenance, asphalt and other construction materials.  An increased number of winter storms in recent years, combined with increases in the cost of salt, fuel and maintenance  have caused road commissions to increase their winter maintenance budgets, and as a result, leaving less money for routine summer maintenance.  For more information on funding and other related topics please visit www.micountyroads.org or “A Guide to Road Funding in Michigan".

   
             
   
 

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