Pass Through Funds

  • By federal statute, a portion of timber and mineral revenue generated from the national forests in Michigan is disbursed to the counties in which the forests are located. In accordance with law (P.A. 182 of 1990), counties must distribute mineral funds with a split of 75 percent going to local school districts for school purposes, and 25 percent to townships for the improvement of their roads.

    An application process is not necessary because the revenues are flow through and are disbursed in accordance with federal and state statutes.

    Contact:

    Accounting Service Center, Michigan Department of Transportation: Elizabeth Flynn, 517-335-3430, flynne@michigan.gov.

    Appropriation:

    On April 16, 2015, the Secure Rural Schools and Community Self-Determination Act of 2000 was re-authorized for FY 2015 and FY 2016. In FY 2016, the Michigan Department of Natural Resources received $3,362,633.81 in timber revenue, and $96,174.97 in gas revenues. The Secure Rural Schools (SRS) payment authority expired on September 30, 2016. Because the SRS Act has not been reauthorized, the 1908 Act, as amended, requires the SRS distribution of payments to the States be calculated based on a 25% 7-year rolling average. Therefore, in FY 2017, the Michigan Department of Natural Resources anticipates receiving $2,448,099.16 in timber revenue. Also, in May, 2016, the Office of Natural Resources Revenue (ONRR) began recovering $121,067 of royalties that have been paid to the State for Unleased Land Accounts in error. The ONRR is offsetting current revenues until the total amount is recovered. ONRR is anticipating it will take 12 to 14 months to fully recover the over payment. Therefore, in FY2017, the Michigan Department of Natural Resources is anticipating to receive $30,000 in gas revenue.