The primary source of funding comes from Act 51 – a gas and weight tax that gets paid at the fuel pump. Currently, Lansing is receiving approximately $11.9 million per year, and most of that is used for snow plowing, potholing, moving, and routine maintenance. Of that $11.9 million, only $2.4 million is used for street repairs. The reason for this is because the Federal Surface Transportation Program (STP) provides between $1 to $1.5 million for rehabilitating major streets. The rest of the funding is generated from a general fund that's annual amount is assigned from the City's tax revenues. So, when the economy is poor like it has been in the past, there is isn't any allocation of money, which in turn means that there isn't any general fund allocations either.
In addition to this, the public safety and infrastructure millage generates approximately $1.95 million per year for operational and maintenance costs such including approximately $300,000 for paving local streets.