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Rail, Intercity Bus, Public Transit, and Marine Revenue Assumptions


The MDOT Public Transportation Program, which includes bus, marine and rail programs, is primarily supported by annual appropriations from the state Comprehensive Transportation Fund (CTF) and the FTA. Revenue from the CTF and the FTA are expected to have a small growth rate during this five-year period. However, the CTF funds for programs will be kept at the estimated FY 2024 level due to the possibility of selling CTF bonds being considered. Should there be a new CTF bond issue, any potential CTF revenue growth will likely be needed for debt service payments.

FY 2023-2027 MDOT Public Transportation Revenue Estimates $2.8 Billion Total (in millions)

Graph showing the 2023-2027 Highway Program Estimated Average Annual Revenue, including routine maintenance (in millions). 

Federal Funding

The Public Transportation Program's revenue assumptions include approximately $183 million annually for potential federal grants to MDOT. These funds are administered by MDOT and do not include federal funds that are received directly by transit agencies, railroads, or other transportation providers. This significant increase from prior years is due to the IIJA. Funds from the FTA are estimated to increase by 2 percent annually.

State Funding

The CTF is a state-restricted fund dedicated to public transportation purposes coming primarily from state fuel taxes, motor vehicle registration fees, and sales tax on automotive-related items. The CTF is subject to an annual appropriations process and the FY 2023 amount for programs is estimated at approximately 16.5 percent more than FY 2022. This increase is due to a projected increase in new revenue plus a significant one-time fund balance at year-end FY 2022. The FY 2024 estimate is 10 percent more than FY 2022, and program estimates for FY 2025-2027 will be kept at the FY 2024 level.

Local Funding

Local and private funds are not shown in the FY 2023 budget as estimated revenue in this program due to very little local or private funds have been used for this purpose historically.