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Operating and Capital Expenses - State / MDOT
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"The Plan..." proposes a large variety of taxes, development fees, fares and incomes to be the "operating assistance" for SMART, DDOT and joint operating expenses as permanent. An increase in State CTF funds from $90 to $122.2 Million/yr is proposed. Other tax mechanisms and increases if voted in, are to be "In Addition to" and not a replacement for State CTF funds. Increased development fees and "non-user" road taxes in unincorporated areas which are those that lack city sewers such as farms and never before developed areas are proposed to help MDOT offset costs to increase CTF funds. Within a decade, fewer schools will be needed as less people move to the outer suburbs thus increasing city tax bases, bringing in more jobs and raising state tax revenues. "The Plan" costs more in state CTF funds, but will more then pay for itself because it is a long-term solution solving an existing need. This can be a chance for Detroit to attract good-paying jobs.


Summary of yearly State CTF funds to implement "The Plan".

$30 Million/yr

SMART

$21 Million/yr

Increase to SMART for "The Plan..."

$60 Million/yr

DDOT

$10 Million/yr

Increase to DDOT to integrate with suburban/regional transportation as explained in the presentation of "The Plan..."

$1.2 Million/yr

Salaries and expenses for an agreement using existing CTF funds in writing to coordinate SMART and DDOT

$122.2 Million/yr

Total State CTF funds per year


* Proposed increases to come from the following.

  • Restoring the 10% of fuel taxes for transit
  • New and/or increased development fees
  • Removing cars from freeways to save on expansions*
  • Imposing more "non-user" taxes such as property to expand both roads and freeways*
  • Increased efficiencies

* See -- Transit Oriented Development - The Case for State Fuel Taxes to Support "Transit Operating Assistance"



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