|Increase Reimbursement Rate for Arterial Maintenance|
The Mandate: There are currently 38 cities that have arterial maintenance agreements with the State. Pursuant to these agreement, the cities maintain certain designated State-owned arterial highways and the State compensates those cities for this service. The reimbursement rate of $.85 per square yard paid to cities for maintenance of state arterial highways has not been increased since 1987.
The Cost: An inflationary adjustment from $.85 to $1.80 per square yard would provide a much needed increase for the 38 cities participating in this state-local shared services program, and would represent an additional State expenditure of approximately $11.8 million.
The Solution: State law should be amended to increase the reimbursement rate to at least $1.80 per square yard. If the State had to maintain these highways, the State's fiscal exposure would far exceed the reimbursement that would be paid to cities under this proposal.