Michigan Road Construction Funding 101
Road construction in Michigan is a political and often personal topic. From funding sources, road construction and repair priorities and the intersection of federal, state and local entities, it takes a lot of coordination – and time – to improve motorways.
What is the Michigan Transportation Fund?
Created in 1951 with the passing of Public Act 51, the Michigan Transportation Fund is the primary source of funding for state, county and local road maintenance in the state. The MTF uses a formula to allocate funding based on use, population and other economic factors. The money is also distributed through state grants to support road work in cities and villages.
Where Does Michigan Road Funding Come From?
The MTF is funded by the federal government, state fuel taxes and vehicle registration fees. About 20% of the MTF budget is allocated to local state agencies. The remaining 80% is divided by road category:
Interstate and State Highways: 39.1%
County Roads: 39.1%
Local/Municipal Streets: 21.8%
Related: Who Should Work On Your Car: Dealer vs. Mechanic
Funding Road Construction Projects in Michigan
Michigan taxpayers don’t foot the entire bill. Road construction funding comes from various sources, although the budget allotted from each source varies greatly based on tax revenue and political priorities.
The five main focuses are:
Interstate Freeways – The Federal Highway Trust and Michigan Transportation Fund often share the expenses of building and maintaining interstate freeways. Funds are allocated by the Michigan Department of Transportation, although federal funds often include certain stipulations on use.
State Highways – The Michigan Transportation Fund is divided into Interstate and state funds. The state portion is managed by MDOT and used to improve road conditions on state highways.
County Roads – Also known as county primary roads, The Michigan Transportation Fund provides limited funding to local county road commissions to improve the roadways that connect Michigan communities. County roads also receive funding the form of state and federal grants. Local road commissions can also raise funds through a county millage.
Local Collector Roads – County and township-level governments allocate funding to improve the local roads that connect residents to villages and cities. Local road projects may receive limited support from federal and state grants but are usually paid for with township funds raised through a millage.
Subdivisions – Subdivision roads are usually paid for by township funds and are considered long-term investments to increase population and tax revenue. Both the County Road Commission and the township direct funding and schedule maintenance.
While relatively rare, private businesses may donate to the upkeep of local roadways.
Related: Is Undercoating Worth It?
Road Funding in Grand Traverse County
The roads in Grand Traverse County are primarily maintained by the Grand Traverse County Road Commission (GTCRC). The GTCRC is a governmental agency responsible for the construction, maintenance, and repair of roads and bridges in the county. It is funded by the county government and through state and federal grants. The GTCRC also works with other government agencies, such as the Michigan Department of Transportation, to maintain state and federal highways that pass through the county. In addition, private contractors may be hired by the GTCRC to perform specific road construction or repair projects.
On the Move in Northern Michigan
Road funding is a critical investment in Michigan’s infrastructure - and we all benefit when the roads get fixed. Maintaining your vehicle is a smart investment, too. Avoid unexpected breakdowns with regular maintenance from Garfield Auto. Schedule your appointment today!