Road Funding

The primary funding source for county road agencies comes from the Michigan Transportation Fund (MTF), a complex formula comprised of fuel taxes, license fees, vehicle registration, and other transportation-related fees which are distributed according to a formula established in Public Act 51 of 1951 to the 83 counties and 534 cities and village road agencies.

For many years the largest source of income to the MTF has been the state gasoline tax. Due to the combination of more fuel-efficient vehicles and motorists changing driving habits and purchasing less fuel has eroded the power of fuel taxes, making the future of the long-term funding solution uncertain.

While funds distributed through the MTF assist the road commission in providing basic services such as grading gravel roads, pothole patching, and snow plowing, this level of funding doesn’t allow the road commission to make significant improvements on most County Local Roads. The Road Commission actively seeks State and Federal grant funds whenever available, and encourages participation in road improvement projects by other agencies and local Township Government. Unfortunately, most grant programs target funding towards County Primary Roads which are mostly paved and in good condition, they do not target County Local Roads which need upgrades.

Road Commissions have no taxing authority and the Ogemaw County Road Commission does not receive any revenue directly from your property taxes. However, your township may levy a millage dedicated to road maintenance. If your Township has a road millage that is collected through property tax collection then your Township receives the taxed money and decides how the funds are used and what projects to pursue. The Road Commission plans and coordinates road projects with active input from township officials and residents.

The Michigan Department of Transportation (MDOT) contracts with approximately 63 county road commissions across the state to maintain over 6,000 miles of state roads. Although county road commissions do the work, they operate under the specifications of MDOT. Ogemaw County Road Commission operates under the direction of the MDOT Alpena Transportation Service Center at 1540 Airport Rd. Alpena, MI 49707 Phone: 989-356-2231.

For more information about funding of roads and related topics, please visit www.micountyroads.org or “A Guide to Road Funding in Michigan”