MI SB0002

Modifies the distribution formula for Michigan transportation funds returned to county road commissions, changing references from "total mileage" to "annual vehicle miles traveled as determined by the federal highway administration" for calculating county primary and local road allocations.

Requires county road commissions to employ a licensed professional engineer and reimburses up to $10,000 per year for engineer costs.

Establishes that at least 90% of state revenue returned to county road commissions must be expended annually for preservation of highways, roads, streets, and bridges, with limited exceptions for bonds, administrative costs, and capital outlay projects.

Permits counties to flex up to 30% of county primary road funds to county local roads (or up to 50% in emergency situations) and allows transfer of up to 15% of local road funds to primary roads with county road commission approval.

Requires the Department of Treasury to conduct performance audits of state transportation funds received by county road commissions to ensure compliance with act requirements.