Published: July 03, 2009 10:30 pm      

Audit: Funds incorrectly paid

Audit finds gas tax funds were over-, underpaid

LANSING (AP) -- A state auditor general's report shows the Michigan Department of Transportation incorrectly distributed gas tax funds to 35 county road commissions in the past two budget years.

The error resulted in $448,253 in underpayments to 19 county road commissions and $448,253 in overpayments to 16 road commissions, The Grand Rapids Press reported Friday. The report found the transportation department didn't properly consider the population of some cities and villages located in more than one county.

"That's why we do audits," said department spokesman Bill Shreck. "We're glad they found it because we want to make sure everyone gets their fair share."

Ottawa County was the biggest loser among the 19 underpaid counties. Neighboring Allegan County now must pay back about $287,000 in funds that should have gone to Ottawa. The mistake occurred because the transportation department excluded the city of Holland, which straddles the county lines of Ottawa and Allegan.

Allegan Road Commission Managing Director Bill Nelson said the payments are another blow to the agency's budget. Nelson said the repayments could contribute to delays in snow plowing, maintenance work and emergency repairs. Nelson said the money should come from the transportation department's budget because it made the error.

"I questioned heavily whether we had to do the back payment," Nelson said.

Mike Mikita, finance director for the Ottawa County Road Commission, said he sympathizes with Allegan. He said that's why his agency agreed to a plan that has Allegan providing installments of around $96,000 over the next three years.