A bill to fix local road financing passed the House on Thursday. It is unclear whether Governor Rick Snyder will sign the legislation.
SB 1068 is similar to a bill vetoed by Governor Snyder earlier this year. House Speaker Kevin Cotter (R-Mount Pleasant) commented the chamber did not expect the Governor to veto the bill, but that is still a possibility. A large change made to the new version of the bill exempts major projects from being the sole financial responsibility of the municipality. In other words, the local communities would not have to pay for a road they do not own.
Additionally, the legislation removes the cost sharing requirement in certain circumstances, while maintaining it in other situations. For example, a city or village with a population of 50,000 or more would incur 12.5 percent of the cost of the project whereas those with population from 40,000 to 50,000 would incur 11.25 percent of the costs, while those with populations of 25,000 to 40,000 would pay 8,75 percent.