Great Lakes Wire

House Speaker Matt Hall has revised his road funding proposal, increasing the budget to $3.1 billion from the initial $2.7 billion without raising revenue. The updated plan includes a larger contribution from the Corporate Income Tax (CIT), now estimated at $2.2 billion, compared to the earlier figure of $1.7 billion.

The CIT breakdown comprises several sources: "$500 million from eliminating MEGA credits, $500 million preventing legislative earmarks, $600 million from the Consensus Revenue Estimating Conference’s higher-than-expected findings last week, $500 million from the Strategic Outreach and Attraction Reserve (SOAR) fund, $50 million from the expiring Revitalization and Placemaking Program," and "$50 million that would have been deposited into the expiring Housing and Community Development fund."

Additionally, Hall's proposal seeks to allocate all motor fuel taxes to road funding permanently. By replacing the gas tax with a motor fuel tax directed entirely towards roads, "Hall also mentioned investing in water and sewer infrastructure," among other priorities for House Republicans this term.

Governor Gretchen Whitmer reiterated her call for a sustainable long-term road funding solution combining revenue increases and spending cuts. Stacey LaRouche, Whitmer's press secretary stated: “Since taking office, Governor Whitmer has invested over $19 billion in Michigan’s roads and bridges as part of her Rebuilding Michigan bond plan." She emphasized the need for new revenue streams alongside responsible cuts.

Concerns were raised about potential job risks if MEGA credits are eliminated. A source noted that 113,362 jobs could be affected under current agreements through 2024.

Senate Majority Leader Winnie Brinks criticized Hall's proposal as being "big on cuts and short on details.” Meanwhile, Rep. Alabas Farhat expressed conditional support for Hall’s plan if school funding is increased.

Hall highlighted that he is currently alone in presenting any plan for road funding solutions.