Road Commission Funding

Our Infrastructure is an Investment

Every day Michigan motorists take our roads and bridges for granted. Most do not consider the investment it takes to keep these structures in good repair.

Our infrastructure requires continual maintenance and improvement for safety and longevity. The upgrades and upkeep must be funded.

Eaton County Road Commission (ECRC) projects are funded in several ways:

Michigan gas tax and registration fees
Property taxes
Special assessment districts
Economic development funds
Critical Bridge Fund dollars
Surface Transportation (STP) funds
Cost-sharing with townships

Michigan Helps Fund ECRC Functions

The state gas tax is assigned to the Michigan Transportation Fund (MTF), funneling money to the Michigan Department of Transportation (MDOT), county, city and village road agencies. These funds are the main source of operating revenue for ECRC. Today, the state gas tax produces less income than it did several years ago.

To counter inflation’s bite, several states increased their gas tax and charge motorists highway tolls. Unlike other states, Michigan does not use the toll road system. In 1997, Governor John Engler signed legislation raising the gas tax from 15 cents per gallon to 19 cents per gallon. Before the legislation, Michigan had not changed the gas tax since 1984.

Although traffic volume has increased, gas tax revenue has dropped because cars are more fuel-efficient. The result is more wear and tear on the roads and funding shortfalls. Delayed maintenance can lead to irreversible road and bridge deterioration.

Eaton County Road Millage Keeps Your Money Local

On November 4, 2014 Eaton County voters approved a county-wide millage in the amount of 1.5 mills for a twelve year period (2015-2026) to fund the repair and rehabilitation of County Local Roads. By law, millage proceeds must be spent only on the following:

The resurfacing and rehabilitation to good condition those Local paved roads rated in poor or fair condition at the time the millage was approved, over the twelve year millage period
The rehabilitation and regraveling off all unpaved Local roads, over the twelve year millage period
Two continuous applications of chloride dust control on all gravel surfaced Local roads each year

It is important to note that millage proceeds may NOT be used for the following:

To build new roads or to pave gravel roads
For any purpose on County Primary roads
Routine maintenance, such as snowplowing, scraping gravel roads, patching potholes, mowing, signs, etc.
To purchase new Road Commission trucks, equipment or buildings
To repair or replace bridges, large county drain structures or large culvert

Special Assessment Fees Pave Way for Better Roads

Occasionally a special assessment is used for a particular project, such as road paving. This provides property owner contributions from those benefiting from the project.

Special assessment districts are set up in two ways:

Land Owner Petition
Property owners representing a minimum of 51 percent of the front footage sign a petition asking for the road to be improved. The Board of County Road Commissioners verifies the need and develops specifications and costs. The Board holds hearings to receive public comment and to adopt the assessment role.
Township Board Resolution
In the case of a township-initiated project, two public hearings are held. The first determines need and gives property owners an opportunity to petition against the project. Such a discontinuance must be signed by landowners representing at least 51 percent of the front footage along the road in question. The second hearing is for citizen comment and adopting the assessment role.

Transportation Economic Fund Brings Home the Dollars

The Transportation Economic Development Fund (TEDF) includes state dollars authorized by the TEDF Act and is administered by MDOT.

The ECRC applies for TEDF assistance for three types of projects:

Projects related to economic development opportunities in target industries such as agriculture or food processing, tourism, forestry, high-technology research, manufacturing or specified office centers.
Improvements to expand the all-season road network and avoid disruptions resulting from seasonal weight restrictions.
Improvements to upgrade roads that are rural-urban links improving safety and all-season capabilities on routes with heavy commercial traffic.

Twenty percent of a given TEDF project’s cost must come from local monies.

State and Federal Dollars Fund Bridge Replacement

County road commissions, cities and villages receive state and federal monies to help fund the replacement of structurally deficient or functionally obsolete bridges that cannot safely carry traffic. The funds are limited and awarded on a statewide competitive basis.

Surface Transportation Act Helps Increase Funding

Some federal road funding is provided under the 1998 Transportation Equity Act for the 21st Century (TEA-21). These dollars are awarded on a competitive basis and local road commissions must provide matching funds to cover 20 percent of the actual construction costs.

Township Match Monies

Each year townships may apply to ECRC for participation funds covering local road maintenance, construction or special assessment projects. These funds are based on township population and miles of local road.

To receive these dollars, a township must provide matching funds on a dollar-for-dollar basis. This match money can come from the township’s own funds, a special road millage or unique private/public contributions.

The ECRC annually sets the total amount of participation funds.

Residents are encouraged to attend any hearings or informational meetings on road and bridge projects in their area. It is a great opportunity to meet ECRC staff, get project updates and discuss concerns.