Road Commission of Macomb County - Progress In Transportation

Road Commission of Macomb County 117 South Groesbeck Highway Mt. Clemens, MI 48043 Phone 586.463.8671 Fax 586.463.8683		Lawrence J. Moloney, P.E., Chairman Dan G. Dirks, Vice-Chair Fran Gillett, Commissioner

Mount Clemens – The Road Commission of Macomb County’s operating expenses decreased by about $500,000 in the past fiscal year despite increasing costs for everything from rock salt to fuel. It was the second year in a row that the road agency cut its operating costs and they have not increased since 2005, said Finance Director Michelle Mykytiak in a report Thursday, Jan. 8, to the Board of Road Commissioners at its meeting. “We were able to cut expenses despite massive increases in many of our basic costs last year, such as gasoline, diesel fuel and rock salt for de-icing roads,” she said, noting fuel costs were up $425,000 and road salt increased $1.3 million. Road Commissioner Bob Sawicki said the savings was a result of hard work and diligence by Road Commission employees. “This is due to the skill of our staff – from the department heads to the professional employees in the engineering and the maintenance departments – watching every penny and making sure every cent is spent wisely.” Operating expenses – not including capitalization costs and road construction – at The Road Commission of Macomb County were $41.1 million in fiscal year 2005. The operating costs were about the same in 2006 and dropped by $300,000 in 2007. They decreased by another $500,000 in 2008 to about $40.3 million. The most dramatic savings has come from the reduction in employees. Since 2005, salaries have been reduced by $1 million and the cost of benefits has dropped about $600,000 due to the reduction in staff. However, making the costs savings more dramatic and difficult were federal rulings in 2006 that required the Road Commission to set aside $3 million a year for future retirees’ health care. The reduction in operating expenses comes from an austerity plan the Road Commission developed in 2005 – including not replacing employees who quit or retired – when its revenues began dropping because skyrocketing costs of gasoline and diesel reduced its demand. The Road Commission gets its revenues from vehicle registration fees and taxes on fuel – 19 cents a gallon on gasoline and 15 cents a gallon on diesel. The state collects those taxes and fees and doles the money out with about 39 percent of it going to County Road Commissions statewide based on a formula that includes population and miles of roads. In 2004, The Road Commission for Macomb County received about $40 million in such revenues and in 2008 about $37 million. The projection for this fiscal year is about $35.7 million – a 4 percent reduction from last year. Since the Road Commission’s cutbacks to prevent deficit spending began, it has consolidated divisions, slashed expenses and reduced staff through attrition. In 2005 it had 305 employees and since then has cut that number to 258 – a reduction of 47 positions or about 15 percent of its workforce. Still, employees have been able to keep the Road Commission running efficiently in maintaining, building, and rebuilding the 1,700 miles of roads and 226 bridges in the county. That is in addition to its other duties including monitoring, repairing, timing and retiming some 900 traffic signals to keep traffic moving smoothly and safely. Other Press Releases: 2010-04-14 - National Work Zone Awareness Week... 2010-01-04 - Road Commission Elects New Chairman... 2009-11-23 - EPOKE Systems Help Snow And Ice Removal... 2009-11-20 - Romeo Plank Widening Complete... 2009-10-28 - Mound Road Nativity Scene... 2009-09-14 - Road Stimulus Projects... 2009-01-12 - Commissioner Gillett... 2009-01-08 - Expenses...