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SB 1074

Transportation: funds; road funding allocation for a local unit of government hosting an international airport; modify. Amends secs. 12 & 13 of 1951 PA 51 (MCL 247.662 & 247.663).

2025-2026 Regular Session Introduced by Darrin Camilleri

The bill expands Michigan Transportation Fund allocations with performance audits and adds an airport-hosting population multiplier directing extra funds to airport-access transpor

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Bill Summary · SB 1074

Summary of SB 1074 (2025-2026) — Michigan

  • Purpose and scope

    • This bill amends 1951 PA 51 (the Michigan Transportation Fund framework) to modify how funds from the Michigan Transportation Fund are allocated to counties, cities, and villages, with a focus on road preservation, construction, and related transportation needs. It also introduces targeted provisions related to airport-hosting townships and airports with high enplanement levels.
    • Introduced June 24, 2026, and referred to the Appropriations Committee. Primary sponsor: Senator Camilleri.

  • Key provisions and changes

    • County road commissions (Sec. 12)
    • Continuation of Michigan Transportation Fund disbursement to counties, with extensive allocation formulas for county primary and local road systems.
    • Establishes multiple mandatory and discretionary spending rules, including:
      • Up to $10,000 per county road commission per year for reimbursement of engineer fees.
      • Deductions and carve-outs for snow removal and urban-area allocations.
      • Priority spending order for debt service, bonds, and related contractual obligations.
      • Specific percentages and formulas governing distributions to county primary vs. county local road systems, including mileage, population, and urban area considerations.
      • Caps on annual use for administrative expenses (not more than 10% of funds for administrative costs).
      • Requirements for asset management plans and performance audits to ensure funds are used for preservation, construction, and related purposes.
    • Provisions on inter-county and inter-governmental agreements to share work.
    • By statute, emphasis on preserving highways and roads and ensuring funds are used in line with debt obligations and long-term asset management.
    • City and village allocations (Sec. 13)
    • Similar structured framework for distributing funds to cities and villages, including major vs. local street systems and corresponding priorities.
    • Maintains a winter maintenance reimbursement mechanism for cities and villages in eligible snow-removal counties (0.7% withholding for snow costs, distributed to eligible municipalities).
    • Sets priorities for debt service, street preservation, and capital outlay, with continued emphasis on asset management planning.
    • Allows for consolidated street administration and intergovernmental agreements.
    • Similar audits and performance-review provisions as for counties; performance audits are to ensure compliance with act requirements.
    • Airports-related multiplier: If a city or village contains part of an international airport with over 2,000,000 enplaned passengers, the population multiplier applies to increased funding, and the funds must be used on airport-related transportation infrastructure. Requires annual reporting of how increased funding was spent and airport access metrics. Department must certify qualifying jurisdictions by February 1 each year.

  • Targeted airport-related provision (new population multiplier)

    • Subsection 25 (Sec. 12 and Sec. 13 parallel language) allows counties (and cities/villages) hosting large international airports to receive a population multiplier (city/county population count tripled for distribution calculations) and directs the increased funding to local airport-access transportation improvements (road construction, resurfacing, drainage, traffic signals, safety enhancements).
    • Requires annual reporting on how the augmented funds are expended and on road condition ratings and traffic volumes on primary airport access routes.
    • The Department must certify qualifying townships/municipalities by February 1 each year.

  • Procedural and timeline aspects

    • The bill sets ongoing allocation rules for the Michigan Transportation Fund, with annual distributions, prioritization rules, and reporting requirements.
    • It introduces and codifies performance audits and annual reporting to transportation committees in both chambers.
    • It requires certain departments to establish and communicate asset management and audit standards in advance of implementation (notably by 2012-2016 milestones referenced in the text, though the current bill action is 2026).

  • Who would be affected

    • County road commissions, city and village road authorities, and charter counties that receive funds from the Michigan Transportation Fund.
    • Local governments (counties, cities, villages) with major or local street systems, especially those hosting or near international airports with substantial enplaned passenger traffic.
    • Departments of Treasury, Transportation, and state legislative transportation committees, through audits, reporting, and certification processes.

Note: The bill preserves the overall framework of the state’s transportation funding while adding explicit airport-related funding multipliers and enhanced reporting/audit requirements.

Compiled from official sources — confirm details with the bill’s official record.

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