March 7, 2006

LANSING – Governor Jennifer M. Granholm and the Michigan Department of Transportation (MDOT) today announced a new plan to stimulate the economy and speed up local transportation projects across the state. The Local Jobs Today plan will provide grants and loans to cities, counties, and local transit agencies to allow them to take advantage of available federal transportation funding and create more than 7,100 jobs in Michigan in 2006 and 2007.
 
“This Local Jobs Today plan can help cities, counties, and local transit agencies across Michigan put federal transportation dollars to work in their communities,” Granholm said.  “By giving counties and cities the opportunity to accelerate critical local road, bridge, and transit projects, we will be able to create thousands of jobs for Michigan residents this year.”
 
Local Jobs Today will offer a combination of short-term and long-term grants to local agencies throughout the state.  Senator Michael Prusi has sponsored a bill that will amend a portion of the transportation funding law to allow the state to issue the bonds for the local transportation grants and loans:

• Under the Local Federal Fund Program, $80 million of the State Transportation Fund (STF) monies will be used to provide the 20 percent match for local projects required for federal funding. This will leverage $320 million in local federal funds.  The state will fund the program by issuing bonds to be repaid with future STF funds.

• Under the Advanced Construct Local Loan Program, the state will issue short-term notes, backed by the STF, to accelerate the use of federal transportation dollars by creating a pool of funds local agencies can borrow from to construct federally eligible or designated local projects.  These loans will be paid back with expected federal revenues coming to Michigan for local projects over the next three years.  Local agencies will be responsible for paying back interest on the short-term loans. Cities, counties, and local transit agencies must be able to identify sufficient total funding to complete the projects and bear any additional costs, including overruns.

• Grants to provide match dollars on local transit projects – equal to their 20 percent federal match requirement – will be made out of available Comprehensive Transportation Fund money.
 
“Michigan’s local road and transit systems are an integral part of our transportation infrastructure,” Prusi said.  “This program is designed to provide local agencies the resources necessary to make much needed improvements.”

The Legislature must pass Senator Prusi’s legislation to allow local governments to have shovels in the ground by this spring.

Preliminary lists of locally selected projects will be submitted by the County Road Association of Michigan, the Michigan Municipal League, and the Michigan Public Transit Association.  The MDOT will review the list to ensure that projects meet Local Jobs Today criteria and comply with federal funding requirements. Local Jobs Today funds are intended for actual construction and construction engineering for projects slated to begin in 2006 or 2007. To qualify, required non-construction activities, such as preliminary engineering work, environmental clearances, or right of way acquisition must be at or near completion.
 
Priority will be given to:

• locally selected projects specifically identified for funding in SAFETEA-LU that are ready to be constructed in 2006 or 2007;

• locally selected federal aid projects scheduled for construction in 2007 that can be advanced to construction in 2006;

• locally selected federal aid projects scheduled for construction in 2008 that can be advanced to 2007; and,

• locally selected transit construction projects such as passenger facilities and bus maintenance garages specifically identified for funding in federal legislation.