Michigan’s Economy and Budget · January 2010 3 School Aid FY 2009-10 $165 per pupil reduction...
Transcript of Michigan’s Economy and Budget · January 2010 3 School Aid FY 2009-10 $165 per pupil reduction...
Michigan’sEconomy and Budget
Mitchell E. Bean, Director
Prepared for:Representative Vicki BarnettDistrict 37 Town Hall MeetingMaxfield Training Center, Farmington
January 25, 2010
January 2010 2
GF/GP and Restricted Cuts (Approximately $850 million)
FY 2009-10 budget approved by Legislature included roughly $500 million in GF/GP reductions and another $350 million in reductions to restricted fund appropriations
Compared to original FY 2008-09 budget, most operational departments saw reductions about 10% in their GF/GP appropriation amounts
Statutory Revenue Sharing for cities/villages/townships reduced by $73.8 million from FY 2008-09 (19.0% reduction)
Funding for Michigan Promise Grant Program entirely eliminated and additional reductions of $59.2 million GF/GP to need-based financial aid programs
Medicaid provider rates cut by 8.0% from original FY 2008-09 levels ($94.9 million GF/GP savings) and non-Medicaid Community Mental Health services reduced by $40 million GF/GP
Human Services budget reduced by over $238 million GF/GP, barely sufficient to meet federal maintenance-of-effort spending requirements for federal funds
January 2010 3
School Aid FY 2009-10
$165 per pupil reduction ($263 million)
ISD operation reduction of 20% ($16.3 million)
Elimination and reduction of specific categorical programs totaling $32.8 million
Governor vetoed the Sec. 20J payments which reduced funding to 39 districts by a total of $51.5 million
January 2010 4
GDP Forecast
-7%
-5%
-3%
-1%
1%
3%
5%
2005Q1 2005Q4 2006Q3 2007Q2 2008Q1 2008Q4 2009Q3 2010Q2 2011Q1 2011Q4
Percent Change
2009Q4 - 2011Q4are January 2010
Consensus Estimates
Source: U.S. Bureau of Economic Analysis and January 2010 Consensus Estimates
House Fiscal Agency
January 2010 5
Interest Rates
0
1
2
3
4
5
6
7
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Per
cen
t
Federal Funds
10-Year Treasury Yield
Source: IHS Global Insight, January 2010 Forecast
House Fiscal Agency
January 2010 6
Index of Consumer SentimentJanuary 2004 Through December 2009
Source: University of Michigan Index of Consumer Sentiment
45
55
65
75
85
95
105
Jan 04 May 04 Sep 04 Jan 05 May 05 Sep 05 Jan 06 May 06 Sep 06 Jan 07 May 07 Sep 07 Jan 08 May 08 Sep 08 Jan 09 May 09 Sep 09
House Fiscal Agency
January 2010 7
U.S. Economy Has Lost 7.3 Million Jobs Since Recession Began
Source: U.S. Bureau of Labor Statistics, U.S. Department of Labor
100
165215
120
(72)(122)
(160)(137)
(161)(128)
(175)
(321)
(380)
(597)
(681)
(741)
(303)
(463)
4
(85)
(681)(652)
(139)(127)(154)
(304)
(519)
(144)
Sep 07 Nov 07 Jan 08 Mar 08 May 08 Jul 08 Sep 08 Nov 08 Jan 09 Mar 09 May 09 Jul 09 Sep 09 Nov 09
Thou
san
ds
House Fiscal Agency
January 2010 8
U.S. and MichiganUnemployment Rates
Sources: U.S. Bureau of Labor Statistics and January 2010 Consensus Estimates
3%
7%
11%
15%
1980 1983 1986 1989 1992 1995 1998 2001 2004 2007 2010
U.S.
Michigan
2009Q3 – 2010Q4are January 2010
Consensus Estimates
House Fiscal Agency
January 2010 9
U.S. % Change in EmploymentNovember 2008 Through November 2009
-3.4%
-13.8%
-10.7%
-4.1%-3.3%
-5.2%-4.4%
-1.1%
Total Non-Farm
Construc- tion
Manufac- turing
WholesaleTrade
Retail Trade Information
FinancialActivities Services
Source: U.S. Bureau of Labor Statistics
House Fiscal Agency
January 2010 10
Michigan % Change in EmploymentNovember 2008 Through November 2009
-5.88%
-16.75% -17.09%
-9.61%
-6.87%
-12.50%
-6.15%
-4.25%
Total Non-Farm
Construc- tion
Manufac- turing
WholesaleTrade
Retail Trade Information
FinancialActivities Services
Source: U.S. Bureau of Labor Statistics
House Fiscal Agency
January 2010 11
Total Existing Home Sales
Source: National Association of Realtors
-23%
-17%
-11%
-5%
1%
7%
13%
19%
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
U.S.
Michigan
% C
han
ge F
rom
Pri
or Y
ear
House Fiscal Agency
January 2010 12
U.S. Housing Starts Drop 75%January 2006 Through November 2009
400
700
1,000
1,300
1,600
1,900
2,200
1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
Source: New Privately Owned Housing Units Started, SAAR, U.S. Census Bureau
Thou
san
ds
House Fiscal Agency
January 2010 13
Length of U.S. Recessions
11
16
6
16
8
8
10
19
# of Months From Peak to Trough
1969-70
1973-75
1980
1981-82
1990-91
2001
Average Post-War
December 2007 Through June 2009 ?
Source: National Bureau of Economic Research and IHS Global Insight, January 2010 Forecast
House Fiscal Agency
January 2010 14
Decline in GDP Steep Compared to Recent Recessions
-1.6%
-2.5%
-3.1%
-0.5%-0.2%
-3.2%
-2.2%-2.6%
-1.4%
0.7%
-3.7%
1948 1953 1957 1960 1970 1973 1980 1981 1990 2001 2008
Peak to Trough GDP Decline
Source: U.S. Bureau of Economic Analysis and House Fiscal Agency Calculations
House Fiscal Agency
January 2010 15
MICHIGAN FORECAST
January 2010 16
Job Growth in Michigan
Source: U.S. Bureau of Labor Statistics and January 2010 Consensus Estimates
(112.7)(76.7) (71.0)
(17.0) (9.2)
(63.2) (58.7)(85.0)
(34.0)
(283.0)
(108.2)
88.0
91-00 01 02 03 04 05 06 07 08 09 10 11
Thou
sand
s
Average AnnualJob Growth
09, 10 & 11 areJanuary 2010
Consensus Estimates
House Fiscal Agency
January 2010 17
Employment Location Quotientsby Industry
Michigan: February 2009
0.96Private non-manufacturing
1.18Manufacturing except Detroit 3
16.20Detroit 3 vehicle and parts manufacturing
Location QuotientIndustry
Source: University of Michigan RSQE, May 2009
January 2010 18
Big 3 Losing Market Share
13.915.1 15.1 15.6
17.416.8 16.9 16.5 16.1
13.2
10.311.2
12.5
1993 1995 1997 1999 2001 2003 2005 2007 2009 201130%
40%
50%
60%
70%
U.S. Light Vehicle Sales Big 3 Share
2009, 2010 & 2011are January 2010
Consensus Estimates
Source: Automotive News and January 2010 Consensus Estimates
House Fiscal Agency
January 2010 19
Michigan Vehicle Employment
Source: U.S. Bureau of Labor Statistics and January 2010 Consensus Estimates
322.6 332.3 341.5 346.1
317.0296.9
274259.3
241.2221.3
202.6
172.4
120.0107.8
94.6
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
Thou
sand
s
2009, 2010 & 2011are January 2010
Consensus Estimates
Hou
se F
isca
l Age
ncy
January 2010 20
Home Prices Fall Sharply
-30%
-25%
-20%
-15%
-10%
-5%
0%
5%
10%
15%
20%
1992 1994 1996 1998 2000 2002 2004 2006 2008
Detroit, MI
10-city average
Source: Case-Shiller Index
% C
han
ge F
rom
Yea
r-A
go
House Fiscal Agency
January 2010 21
Property Value Growth Slowing
Yearly Change
1.4 %−1.3 %2.3 %2008−0.8 %−5.4 %4.4 %2009
5.2 %3.8 %3.7 %20075.8 %5.0 %3.3 %20065.6 %5.9 %2.3 %20055.7 %6.3 %2.3 %20044.8 %7.5 %1.5 %20036.7 %9.8 %3.2 %20027.1 %10.0 %3.2 %20015.5 %9.0 %1.9 %20006.0 %9.9 %1.6 %19996.1 %9.5 %2.7 %19985.7 %8.2 %2.8 %19975.1 %7.5 %2.8 %1996
Total TaxableValue Growth
Total SEVGrowth
Inflation RateMultiplier
for Property
January 2010 22
Apr
19
60
to
Feb
19
61
Nov
19
73
to
Mar
19
75
Jan
19
80
to
Ju
l 19
80
Jul 1
98
1 t
o N
ov 1
98
2
Jul 1
99
0 t
o M
ar 1
99
1
Mar
20
01
to
Nov
20
01
Dec
20
07
to
Jun
e 2
00
9
Au
g 1
92
9 t
o M
ar 1
93
3
May
19
37
to
Ju
n 1
93
8
Feb
19
45
to
Oct
19
45
Nov
19
48
to
Oct
19
49
Jul 1
95
3 t
o M
ay 1
95
4
Au
g 1
95
7 t
o A
pr 1
95
8
Dec
19
69
to
Nov
19
70
Apr
19
60
to
Feb
19
61
-14.73%
22.40%
-6.72%
20.58%
13.09%
7.39%
-3.31% -3.48%
1.33%
-20%
-15%
-10%
-5%
0%
5%
10%
15%
20%
25%
1930
1935
1940
1945
1950
1955
1960
1965
1970
1975
1980
1985
1990
1995
2000
2005
2010
*
Michigan Per Capita IncomeDeviation from National Average
*2009 and 2010 are EstimatesSource: National Bureau of Economic Research
House Fiscal Agency
January 2010 23
MICHIGAN REVENUE
January 2010 24
State of Michigan Revenue SourcesFY 2009-10 Total = $40,567.6 million
Income Taxes$5,273.3
13.0%
Federal Funds*$15,540.2
38.3%
Sales & Use Taxes$7,037.5
17.3%
Tobacco Taxes$981.80
2.4%
State Education Tax
$1,875.04.6%Transportation
Revenue$1,997.8
4.9%
Other Taxes$2,103.8
5.2%
Business Taxes$2,479.4
6.1%
NonTax Revenue$3,278.8
8.1%
*Federal Funds at Executive Recommendation Without ARRA
House Fiscal Agency
January 2010 25
Inflation Adjusted GF/GP RevenueDown 43.4% Since FY 2000
$8,764
$9,463$9,788
$8,042$8,309$8,764
$6,981$6,701 $6,638
$6,968
$8,990
$7,366
$8,427 $8,319$8,266
$9,359
$6,898
$7,959
$5,238
$9,252
$7,548
$6,926
$9,242
$5,283
$5,771
$7,265
$8,214
$6,944
FY 98 FY 99 FY 00 FY 01 FY 02 FY 03 FY 04 FY 05 FY 06 FY 07 FY 08 FY 09 FY 10 FY 11
Mill
ions
FYs 10 & 11are
January 2010ConsensusEstimates
Actual Dollars
Adjusted for Inflation
House Fiscal Agency
January 2010 26
Inflation Adjusted SAF Net RevenueDown 15.7% Since FY 2000
$9,310
$10,615$10,910
$11,082 $11,153
$9,131 $9,066$9,349
$9,141 $9,167$8,983 $8,900
$10,481 $10,715
$10,134$9,994$9,889
$11,513
$10,922
$10,458
$7,878
$8,797
$9,092$9,347
$8,936
$8,558
$8,009
FY 98 FY 99 FY 00 FY 01 FY 02 FY 03 FY 04 FY 05 FY 06 FY 07 FY 08 FY 09 FY 10 FY 11
FYs 10 &11are
January 2010ConsensusEstimates
Mill
ion
s
Actual Dollars
Adjusted for Inflation
House Fiscal Agency
January 2010 27
Sales/Use Tax Share Declining
Taxable Sales as a Percent of Personal Income
FY 0935.3%33%
35%
37%
39%
41%
43%
45%
47%
49%
51%
FY 78 FY 80 FY 82 FY 84 FY 86 FY 88 FY 90 FY 92 FY 94 FY 96 FY 98 FY 00 FY 02 FY 04 FY 06 FY 08
Per
cent
of
Per
sona
l Inc
ome
House Fiscal Agency
January 2010 28
Sales Tax Revenue
5.9% 6.4%
1.4% 1.9%0.9%
-3.2%
4.2%
4.2%
5.1%
1.2% 0.6%
-0.3%-1.3%
3.4%
0.8%
-10.1%
FY 96 FY 97 FY 98 FY 99 FY 00 FY 01 FY 02 FY 03 FY 04 FY 05 FY 06 FY 07 FY 08 FY 09 FY 10 FY 11
% C
hang
e Fr
om P
rior
Yea
r
FYs 10 & 11are
January 2009 Consensus Estimates
House Fiscal Agency
January 2010 29
Transportation Revenue
*HFA Estimates
$736.
3 $90
3.5
$931.0
$922.
0 $9
33.5
$938.
9 $9
35.7
$932.
1 $9
22.4
$906.2
$883.7
$84
8.9
$840.
0 $8
32.0
$86.3
$118.3 $134.6 $143.5 $133.2 $143.0 $157.0 $140.5 $146.3 $148.6 $143.8 $140.1 $137.0 $137.0
$647.
2 $713.
6 $758.5
$80
2.9
$824.7
$87
7.1
$892.7
$97
8.5
$896.0
$898.8
$9
07.8
$894.
7 $87
3.8
$870.5
$1,868$1,959
$2,051$1,954
$1,884 $1,840$1,735
$1,470
FY 97 FY 98 FY 99 FY 00 FY 01 FY 02 FY 03 FY 04 FY 05 FY 06 FY 07 FY 08 FY 09* FY 10*
Mill
ions
of
Dol
lars
Net Vehicle License/Registration
State Diesel Fuel Taxes
State $.19/gal Gasoline Tax
House Fiscal Agency
January 2010 30
Michigan Gasoline Tax Revenue
$800
$825
$850
$875
$900
$925
$950
FY 98 FY 99 FY 00 FY 01 FY 02 FY 03 FY 04 FY 05 FY 06 FY 07 FY 08 FY 09* FY 10*
Mill
ions
*Michigan Department of Treasury, May 2009
House Fiscal Agency
January 2010 31
Impact ofTax Exemptions/Credits/Deductions
Bill
ion
s
$10
$15
$20
$25
$30
$35
FY94 FY95 FY96 FY97 FY98 FY99 FY00 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09
Tax Exemptions/Credits/Deductions
Revenue
Revenue$6.8 BillionHIGHER
Revenue$6.3 Billion
LOWER
House Fiscal Agency
January 2010 32
MICHIGAN’SBUDGET
January 2010 33
FY 2009-10 BudgetAdjusted Gross Funding Sources
GF/GP $8,128,039,200
State Restricted $17,029,122,900
Federal$18,857,862,900
42.40%
Local/Private $463,501,000
1.04%
State Sources $25,157,162,100
56.56%
Adjusted Gross = $44,478,526,000
58.8%of State Sources
fundingis paid to
local governments
YTD 1/14/2010
House Fiscal Agency
January 2010 34
FY 2009-10 Appropriations Funding
Adjusted Gross = $44,478,526,000
Restricted/Other$20,269,867,800
45.6%
SAF$12,823,571,000
28.8%
GF/GP$8,128,039,200
18.3%
Transportation$3,257,048,000
7.3%
37.7% Federal60.6% State Restricted
1.7% Local
76.9% Federal21.3% State Restricted2.0% Local/Private
16.0% Federal83.8% State Restricted
YTD 1/14/2010
House Fiscal Agency
January 2010 35
State Restricted & GF/GP FY 2009-10
Other19.1%
Education50.2%
Corrections7.7%
Tranportation7.8%
Community Health15.1%
FY 2009-10 Total = $25,157,162,100
House Fiscal Agency
January 2010 36
FY 2009-10 GF/GP
Community Health28%
Corrections24%
Colleges / Universities
22%Human
Services11%
State Police3%
Debt Service4%
Other8%
4.0%$300 million
Debt Service and SBA Rent
Civil Rights0.14%
State0.22%
Education0.24%
Attorney General0.35%
School Aid0.37%
Legislative Auditor General0.14%
Executive Office
0.06%
DELEG0.67%
0.72%
Judiciary1.88%
Resource Protection
0.91%
Treasury1.27%
Legislature1.29%
Military Affairs0.45%
FY 2009-10 Total = $8,128,039,200Management and Budget
House Fiscal Agency
January 2010 37
School AidMajor Spending Categories
Foundation allowances(used for school operations)absorb $3 out of every $4 spent
Other Programs$403,265,400
3.1%
Foundation Allowances
$9,341,300,000 72.8%
Early Childhood Programs
$106,975,000 0.8%
Federal Programs (non-Special Ed)$1,177,059,400
9.2%
At-Risk Programs$308,988,200
2.4%
Special Education$1,485,983,000
11.6%
FY 2009-10 Total = $12,823,571,000
Note: Does not include local revenue and recognizes the $165 per pupil reduction.
YTD 1/14/2010
House Fiscal Agency
January 2010 38
Medicaid Impact on Michigan Budget
For FY 09, approximately 22.4% of Michigan GF/GP revenueis appropriated for Medicaid
1 of 6 Michigan residents were eligible for Medicaid inApril 2009
42% of births and 70% of nursing home expendituresin Michigan are financed through Medicaid
Total state and federal Medicaid appropriation isover $9.9 billion in FY 09
Since FY 1999-2000
88.4% increase in Medicaid funding
53.0% growth in Medicaid caseload (564,000 cases)
January 2010 39
Corrections Budget IncreasesFY1023%
0
10
20
30
40
50
60
FY71 FY74 FY77 FY80 FY83 FY86 FY89 FY92 FY95 FY98 FY01 FY04 FY07 FY 10
Pri
son
/Cam
p P
opu
lati
on in
Th
ousa
nd
s
Prison/Camp Population
Corrections % of State GF/GPFY0921%
FY712%
FY793%
FY899%
FY9515%
Fiscal Year 2008-09 includes GF/GP reductions due to appropriation of federal ARRA funds.Fiscal Year 2009-10 includes the impact of gubernatorial vetoes of negative line items in the MDOC budget.
House Fiscal Agency
January 2010 40
$0
$6
$12
$18
$24
$30
$36
$42
$48
FY 00 FY 01 FY 02 FY 03 FY 04 FY 05 FY 06 FY 07 FY 08 FY 09 FY 10ytd
Adjusted Gross Appropriationsby Fund Source
Excluding federal funds, FY 00 = FY 10 adjusted gross appropriations
YTD 1/14/2010
Bill
ion
s
Fede
ral
Res
tric
ted
GF/
GP
Local + Private
House Fiscal Agency
January 2010 41
% Change in Source ofAdjusted Gross Appropriations
42.6%43.8%
45.0%
42.3%
38.3%
27.5%
31.4% 31.9%33.6%
42.4%
22.3% 22.0%22.9%
17.8% 18.3%
36.9%
44.2%
27.0% 23.7%
FY 00 FY 01 FY 02 FY 03 FY 04 FY 05 FY 06 FY 07 FY 08 FY 09 FY 10YTD
% o
f To
tal A
djus
ted
Gro
ss
State Restricted Funds
Federal Funds
GF/GP
YTD 1/14/2010
House Fiscal Agency
January 2010 42
GF/GP Appropriations
$9,189.0
$8,766.9
$9,981.8
$8,128.0$8,612.6$8,438.9
$8,176.8 $8,251.0$8,133.5
$6,996.7
$8,569.2
$9,106.3 $9,118.7
$8,706.6$8,830.9
$7,507.6
$8,659.7
FY 02 FY 03 FY 04 FY 05 FY 06 FY 07 FY 08 FY 09 YTD FY 10*
Actual Dollars
Adjusted for Inflation
Mill
ion
s of
Dol
lars
YTD 1/14/2010
House Fiscal Agency
January 2010 43
School Aid BudgetAdjusted Gross Appropriations
$11,451.1
$12,554.7$12,606.2$12,700.6
$13,008.2
$13,259.8
$11,708.5
$11,189.4$11,038.7
$12,823.6
$12,467.1
$12,897.8
$12,134.5
$11,507.7
$12,244.3
$11,617.1$11,602.8
FY 02 FY 03 FY 04 FY 05 FY 06 FY 07 FY 08 FY 09 YTD FY 10 YTD
Actual Dollars
Adjusted for Inflation
Mill
ion
s of
Dol
lars
YTD 1/14/2010
House Fiscal Agency
January 2010 44
Average Numberof Classified State Employees
30
35
40
45
50
55
60
65
70
FY71 FY74 FY77 FY80 FY83 FY86 FY89 FY93 FY95 FY98 FY01 FY04 FY07
Thou
sand
s of
Em
ploy
ees
16.7% DecreaseFY 01 to FY 09 YTD at 6/27/09
TOTAL All Departments
18.1% DecreaseFY 01 to FY 09 YTD at 6/27/09
TOTAL Without Corrections
House Fiscal Agency
January 2010 45
Constitutional Revenue Limit
Billions of Dollars
($8.94)
($7.78)
($4.22)
$0.16
($2.41)
($3.92) ($4.18) ($4.44)($4.95)
($5.32)($4.65)
($7.72)
FY 00 FY 01 FY 02 FY 03 FY 04 FY 05 FY 06 FY 07 FY 08 FY 09 FY 10 FY 11
FYs 10 and 11are January 2009
Consensus Estimates
Average decline of Michigan revenue = 0.1% per year from 2000 through 2011
Average growth of Michigan personal income = 2.7% per year from 2000 through 2011
House Fiscal Agency
January 2010 46
CURRENTISSUES
January 2010 47
Major School Aid Issues
Funding levels
Declining enrollment
Future issues:
Retirement costs
Infrastructure financing
Local property taxes
January 2010 48
Total Membership Pupil Counts
1,580,100
1,697,537
1,680,282
1,652,332
1,619,744
1,597,450
1,707,357
1,688,996
1,671,174
1,646,747
1,615,579
1,592,726
1,698,414
1,706,4071,710,630 1,714,705 1,714,185
FY 95 FY 96 FY 97 FY 98 FY 99 FY 00 FY 01 FY 02 FY 03 FY 04 FY 05 FY 06 FY 07 FY 08 FY 09 FY10*
FY11*
Pupil Blend
50/50 FYs 95–97
60/40 FYs 98–99
75/25 FY 00
80/20 FYs 01–04
75/25 FYs 05–10
*FY 10 Unaudited Count; January 2010 Consensus Estimate
House Fiscal Agency
January 2010 49
Total Appropriations forState University Operations
$1,615.5
$1,565.9
$1,428.6 $1,419.8 $1,433.2$1,452.7
$1,467.3 $1,461.2
$1,379.7
$1,341.7
$1,286.4 $1,278.4$1,260.3
$1,285.5$1,257.8
$1,433.3$1,527.2
FY 02 FY 03 FY 04 FY 05 FY 06 FY 07 FY 08 FY 09 FY 10
Actual Dollars
Adjusted for Inflation
Note: Appropriations include delayed payments in FY in which funds were originally appropriated
Mill
ion
s of
Dol
lars
YTD 1/14/2010
House Fiscal Agency
January 2010 50
State University Tuition Ratesand State Funding
-10%
-5%
0%
5%
10%
15%
FY89 FY91 FY93 FY95 FY97 FY99 FY01 FY03 FY05 FY07 FY09
% C
hang
e Fr
omm
Pri
or Y
ear
State Funding/Student
Average Resident Undergraduate Tuition/Fee Rate
House Fiscal Agency
January 2010 51
Revenue Sharing Payments toCities, Villages, and Townships
$800
$900
$1,000
$1,100
$1,200
$1,300
$1,400
$1,500
$1,600
FY 99 FY 00 FY 01 FY 02 FY 03 FY 04 FY 05 FY 06 FY 07 FY 08 FY 09 FY 10*
Mill
ion
s
Full Funding
Actual
Statutory and Constitutional Payments
*FY10 Amounts are Estimates
House Fiscal Agency
January 2010 52
Law Enforcement
613 613615
610609
608609
608
610
23,150 23,157
21,81521,621
21,500 21,424
21,115
22,174
22,931
2001 2002 2003 2004 2005 2006 2007 2008 2009*
Agencies
Positions
Source: Michigan Commission on Law Enforcement Standards *As of 11/30/2009
House Fiscal Agency
January 2010 53
Statewide Pavement ConditionCombined Freeway and Non-Freeway
Sources: Michigan Department of Transportation website and 2010-2014 Draft Five-Year Highway Program Presentation 11/19/09
71%69%
64%
82%
89%
75%
92%
69%
87%
78%
1996 1998 2000 2002 2004 2006 2008 2010 2012 2014
% P
avem
ent
in G
ood
Con
diti
on
Existing Condition Projected Condition Goal
House Fiscal Agency
January 2010 54
Reduced State RevenueMay Lead to Loss of Federal Aid
$475 $503 $549 $554
$84$89 $97 $98
$520** $565** $624** $593**
$1,152$1,216 $1,211 $1,172
$1,436*
2010 2011 2012 2013 2014
Mill
ion
s
Program Total With Routine Maintenance Federal Aid Lost State Revenue Shortfall*2010 Proposed Highway and Maintenance Capital Program with anticipated ARRA
**Estimated Resulting Program Amount (with declining state revenue and inability to match available federal aid)
Sources: Michigan Department of Transportation website and 2010-2014 Draft Five-Year Highway Program Presentation 11/19/09
House Fiscal Agency
www.house.mi.gov/hfa