I think we’d be safe to project a five or six percent decrease for 2008 in (Michigan Transportation
Funds).
—Joe Nedow,
county Road Commission

The county Road Commission may incur a significant drop in state transportation revenues next year if projections issued by a state-wide advocacy group are proven true.

At its meeting Tuesday, the commission reviewed financial statements showing Leelanau County received $1,836,4890 in Michigan Transportation Funds (MTF) through the end of August 2007. The total represents a 0.4 percent decrease from August 2006, when the Road Commission received $1,843,946.

Clerk Joe Nedow said the County Road Association of Michigan (CRAM) projected MTF to be flat for 2007. Using CRAM’s projections for each month through the end of the year, Leelanau will receive $2,647,590, down 0.5 percent from 2006.

The majority of the Road Commission’s budget comes from MTF, as well as the half-mill property tax levy approved by voters last year. Nedow said CRAM is predicting a four percent decrease in MTF for all road commissions in 2008.

“I find that CRAM’s projections tend to be a little optimistic. I think we’d be safe to project a five or six percent decrease for 2008 in MTF,” he said.

If CRAM’s outlook holds true, the Road Commission would receive $2,541,700 in MTF, which is $105,890 less than what it expects to receive in 2007.

On the other side of the ledger, costs are not decreasing. In comparing fuel expenses, Nedow said the commission paid 35 percent more for diesel fuel and 37 percent more for gasoline than it did in September 2006.

Also increasing is health insurance coverage for union workers, non-union staff and management. Nedow said the monthly premiums averaged a 12 percent increase each year from 2003 to 2005. The costs jumped 15.6 percent in 2006, then increased 13 percent in 2007.

“So my gas and weight tax revenues are going south while my health care costs are going north,” said commission chairman Lee A. Bowen.

As to how the Road Commission will address the problem, neither Bowen nor vice-chairman Glen M. Noonan would comment. Member John Popa was on vacation and did not attend the meeting.

In other business, the Road Commission:

• Heard a report from manager Herb Cradduck concerning ongoing road improvement projects. He said it will probably be next week before workers with Rieth-Riley Construction will be available to apply the final course of pavement to County Road 669 from Ryant Road north to M-22. Rieth-Riley is finishing work on repaving M-22 from Glen Arbor north to Thoreson Road.

• Commission workers will conduct excavating work on County Road 651 from County Road 616 north the bridge over Victoria Creek in Cedar as part of an ongoing “streetscape” beautification project. Cradduck said the section of road has a bad base.

Since the road is to be resurfaced as part of the project, crews would create a better dirt and gravel base. Work was expected to start this week.