Frequently Asked Questions
Below you will find information that might help you understand how to find things or learn about information you might need to know about your city or town.
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One Penny (Gas & Diesel) = $54.5 Million statewide (Gas tax only = $47 Million).
For MDOT, one penny of gas tax generates $17 million.
In Oakland County, one penny of gas tax generates approximately $1.8 million for RCOC and $1.3 million for Oakland’s 40 Cities and Villages.
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We are all sensitive to the amount of taxes we pay, and some are downright upset. Statements similar to the following are frequently heard: “I pay all these taxes; why can’t I get my roads fixed?” Read more aboutFunding
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No. New development generates new tax revenue in three ways: New property taxes from the increased property value; new sales tax from increased commerce; and new income tax from new jobs. None of those taxes are used to fund roads in Michigan. The primary sources of road funds in Michigan are the gas tax and vehicle registration fees.
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State fuel tax and vehicle registration fee revenues are collected in a single "pot" known as the Michigan Transportation Fund. After money is taken off the top for a number of items including the Bridge Fund and Mass Transit, the remaining money is divided between the Michigan Department of Transportation, county road commissions and cities and villages according to a formula established by the state Legislature.
The formula calls for 39.1% of the money to go to MDOT (which has jurisdiction over 8% of Michigan's roads), 39.1% to go to county road commissions (which have jurisdiction over 75% of Michigan's roads) and 21.8% to go to cities and villages (which have jurisdiction over 17% of Michigan's roads).
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No. Because cars are continuously becoming more fuel-efficient, we're able to drive further on less gas. That means we're putting more wear and tear on Michigan roads and paying less to maintain them. The Motor and Equipment Manufacturers Association estimates gasoline consumption is up 5% since 1978, while we're driving 56% more miles!Funding
Between 1997 and 2007, Michigan's gas tax revenues actually decreased by an annual average of 0.19 percent. -
All the federal road funds are allocated to the Oakland County Federal Aid Task Force. The Road Commission and all cities and villages in the county submit projects to the Task Force's Funding Committee. The Committee objectively evaluates all the projects and determines which one should receive funding.Funding
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Assertion: "The Road Commission is not spending enough money in my community because it is spending all its money in other communities."Funding
Response: The above statement is both true and false. It is true that the Road Commission is not spending enough in any community. It is not true that the Road Commission is spending the money someplace else. The Road Commission spreads the road dollars around as best it can. There simply are not enough dollars to do an adequate job anywhere. -
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- Rehabilitate/resurface two-lane asphalt road, adding selected passing and turn lanes: $1.5 million/mile
- Rehabilitate/resurface 5-lane concrete road: $1.6 million/mile
- Pave a main gravel road: $2 million/mile
- Widen from 2 lanes to 5 lanes: $7.5 million/mile
- Widen from 2 lanes to 4-lane boulevard: $12 million/mile
- Widen from 2 lanes to 6-lane boulevard $15 million/mile -
Traffic volumes have been growing in our area due to development, and it's not likely that the necessary road improvements will occur before the traffic problems get really bad. If the increase in traffic is the result of the development, why not get the developers to pay for some of the costs of needed road improvements? Learn more on theFunding
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Statewide, 14 counties, some townships and many cities and villages are already doing this. Why? Necessity, resulting from decades of inadequate road funding by the state.Funding
Which is the most equitable way to raise money for road maintenance and repairs? Should it be based on: A. The amount you use the roads; or B. The value of your property?
Which hits the elderly and those on fixed incomes the hardest? The Gas Tax = a "User" Tax. The more you use the roads, the more you pay to maintain and improve them. -
Some have suggested that road problems in Oakland County could be eliminated or reduced if we simply eliminated this condition and returned 100 percent of the funds collected for roads in the county. For a number of reasons, this is simply not realistic, though adjustments have been made in the past to reduce Oakland's donor status.Funding
Here are some of the reasons Oakland's donor status cannot simply be eliminated: 1. Oakland is not the only donor in terms of transportation dollars. In fact, all "urban" counties in Michigan are donors. 2. The "urban" counties subsidize the rural counties that do not have the population or other tax base to generate enough money to maintain their roads. 3. In recent winters, the road commissions in some northern counties were unable to plow snow on the weekends because they could not afford the overtime. Eliminating the donor status of "urban" counties would make this situation worse. 4. If all "urban" counties got back 100 percent of the transportation funds they generate, rural counties would be devastated. -
Certainly, it would be ideal to widen and pave roads before development occurs. Unfortunately, in reality, this is infrequently possible. Learn more on theFunding