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B-203214 1 (1982-06-23)

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FILE; B-203214

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                    DATEI June 23, 1982

Financing Traffic Signal at Entrance to
Detroit Arsenal Tank hLant


GAO will no longer object to use of appropriations
to finance installation of traffio signals at or
near Federal installations where such installation
is not a service which the State or local jurisdic-
tion is required to provide for all residents of
the area free of charge, and the charge does not
discriminate against the United States, Previous
Comptroller General decisions to the contrary are
herety nif ied,


     This decision is in response to a letter dated April 30,
1981, fron Senator Carl Levin, who asked whether it was permis-
sible for the Department of the Army to contribute to the financ-
ing of a new traffic signal at the intersection of Michigan State
Highway M-3 (Van Dyke Avenue) and entrance gate nunber 8 of the
Detroit Arsenal Tank Plant in Warren, Michigan.

     The plant is a Government-o;med-contractor-operated facility
currently producing M-V0 Army tanks. The affected intersection is
T shaped, where the entrance drive me.ets the heavily-traveled
State road. The lack of a traffic signal has been determined to
interfere with access to the plant and to cause a safety hazard
for all travelers in the intersection- In accordance with Michigan
State law, (Mich. Stat, Ann, § 9.1097(lb)) the State of Michigan
will pay two-thirds of the installation cost Ad of the annual main-
tenance expenses of the traffic signal. The question before us is
whether Department of Defense apprcpriations may be charged for the
remaining third. On the basis of the'analysis below, we would not
object to the Department of Defense appropriations being used for
this purpose.

     In our early cases involviitj traffic signals, we held that
traffic regulation Is a funct.*.Icn of State and local authorities,
to bxe financed by State and lccal taxes. Analogizing a required
Federal subidy of signal installation to an unconstitutional tax
or an unauthorized payment in lieu of taxes, we found such expendi-
tures generally to be unauthorized. 36 Coup. Gen. 286 (1956); 51
Coup. Gen. 135 (1970).


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