The Road Commission for Oakland County (RCOC) Board of Road Commissioners today, Thursday, Sept. 21, approved the $193.9 million fiscal-year 2024 Road Commission budget.
The budget represents about a $15.8 million increase from the fiscal-year 2023 budget of $178.1 million adopted in September of last year. The 2024 budget increased primarily due to increases in federal road funds and increased interest earned.
The federal funding level fluctuates from year to year depending on the type and number of projects conducted. The interest revenue fluctuates based on the amount of money held by the agency at any time and the interest rates available. RCOC anticipates receiving $39.1 million in federal funding in FY 2024 (compared to $27 million for the current year) and $1.9 million in interest revenue (compared to $525,000 for the current year).
RCOC anticipates no increase for the coming year in its largest source of revenue – state road funds generated by the state fuel taxes, vehicle registration fees and the state income tax. The agency expects to receive about $122.3 million in state road funding in fiscal year 2024, the same as it received in the current year.
The state dollars are RCOC’s main funding source for operations.
The remaining revenue making up the budget comes from local community contributions ($10.8 million – down from $13.2 million in the current year), RCOC’s contract with the Michigan Department of Transportation (MDOT) to maintain state highways in the county ($14 million, up from $12.5 million for the current year) and fees and other revenues ($2.6 million, about the same as received for the current year).
The 2024 budget includes nearly $70 million in annual contributions toward safety-focused road-improvement projects planned to be under construction in 2024 and future years (this is not the total cost for these projects -- some costs were included in the current year’s budget or will be included in the 2025 budget where projects are carried over from last year or expected to be carried over into 2025); $38.7 million for road maintenance efforts such as pothole patching, gravel road grading and salting and plowing in the winter; and $17.3 million for maintaining traffic signs, signals, pavement markings and guardrails among other activities.
The remainder of the budget is dedicated to operating expenses including customer services, vehicle maintenance, staff wages, buildings and grounds and administration.
The budget includes the 2024 Road Improvement Program (RIP) which includes next year’s road-construction projects. Among the planned projects are:
- Construction of a roundabout at the Baldwin Road/Clarkston Road intersection in Orion Twp.
- Major resurfacing of Brown, Giddings and Silver Bell roads around the GM Orion Plant in Orion Twp. and Auburn Hills
- Major resurfacing of Southfield Road from 11 Mile to 12 Mile in Lathrup Village
- Replacement of the Pontiac Lake Road bridge over the Clinton River in Waterford Twp.
A complete list of projects expected to be constructed in 2024 is attached. Projects are typically selected based on a detailed, computerized road-assessment program combined with engineers’ analysis and a review of safety data. The decisions are often made years before construction begins because of funding requirements.
The budget is posted on the RCOC Website, www.rcocweb.org (click on the “Financials” button on the home page, select “Budget Summary” and click on “2023-24 Budget as adopted”).
Editor’s Note: The list of anticipated projects to be constructed in 2024 and a summary of proposed revenues and expenses are attached.
2024 BUDGET
October 1, 2023 - September 30, 2024
REVENUES
Source
- State fuel tax, vehicle-registration fees and state General Fund $122,268,889
- State highway-maintenance contract $ 13,985,000
- Michigan Transportation Economic Development Fund (TEDF) $ 3,165,000
- Federal funding-Road Improvement Program (RIP) $ 36,082,500
- Federal funding-signal projects $ 560,000
- Federal funding-Traffic Operations Center operations $ 2,320,000
- Federal funding-Medicare Part D $ 200,000
- Contributions from local governments $ 10,837,500
- Fees and other revenues $ 4,515,522
- Appropriation from fund balance $ 0
Total Revenues $193,934,411
EXPENSES
Source
- Road Improvement Program (RIP) $ 70,040,000
- Operating expenditures $120,394,411
- Traffic-signal projects $ 1,000,000
- Special Assessment District projects (contractor payments) $ 2,500,000
Total expenses $193,934,411
