LANSING, Mich. (WZMQ) – Lawmakers are one step closer to passing a long-term funding plan for Michigan roads. On Wednesday, the state House of Representatives passed 9 bills to put $3.1 billion toward primarily local road repairs.
The newest addition to the plan is a neighborhood roads fund that puts $2.5 billion toward local road commissions. Representative Pat Outman (R-Six Lakes) said the money will go to county nonprimary roads and the roads that are the most neglected.
Since the governor rolled out her plan in February, Republicans have pushed for a version of the legislation that doesn’t increase taxes, but their bills fall a billion dollars short of industry recommendations.
The plan pulls money from state corporate income taxes, eliminates the sales tax on gas, and replaces it with an increase in the motor fuel tax from 31 cents per gallon to 51 cents.
Representative Dave Prestin (R-Cedar River) said he’s hoped to remove sales tax on gas since he was the owner of Cedar River Plaza. Before he took office, he worked with Senator Ed McBroom back when he was in the House of Representatives to introduce a plan that never passed. Prestin said that his district competes with Wisconsin, a state with no sales tax on gas, and this change would put them on par with neighbors and generate funds for the roads.
“The whole bill package is revenue neutral and I think it’s going to be a game changer for our road commissions,” Prestin said. “This is a really good package. It doesn’t raise taxes, it takes existing funding and reprioritizes it into things that are really essential and needed for everybody in Michigan.”
House Democrats were quick to raise red flags because Michigan schools currently receive funding through the sales tax on gas. The House plan would replace the lost funding with $755 million redirected from the state’s general fund, money that is already designated for other programs. This was a cause of major concern for Democrats who said not just education would be impacted, but housing and health care programs could all be affected too.
Minority leader Representative Ranjeev Puri (D-Canton) said he hopes to keep negotiating to find a way to create more revenue and replace the parts of the plan they believe aren’t reliable. He said it might be bills introduced in the House or amendments added in the Senate, but that changes will be needed to make the plan work for Michigan.
“There’s not one silver bullet that’s going to solve this issue. We need $3.5 to 4 billion… There’s not one solution that gets you to that number.” Puri said. “We are strident in our pursuit of finding a plan that is sustainable, that is long-lasting, that is recession proof, that is future proof, that is agnostic from the fact of what type of car you’re driving and is based in the fact of new revenue coming in.”
Republicans maintain the state has the funding to fix the road without asking for more from Michigan residents. The bills are now waiting for consideration in the Senate. With Democrats holding a majority, the bills may see major changes if they are addressed.
