Brian Calley President and Chief Executive Officer at Small Business Association of Michigan | LinkedIn
Brian Calley President and Chief Executive Officer at Small Business Association of Michigan | LinkedIn
Governor Gretchen Whitmer has introduced a $3 billion road funding proposal aimed at addressing Michigan's infrastructure needs. The plan, announced on Monday, includes reallocating taxes collected at the gas pump to road maintenance and introducing new taxes on large corporations.
The "MI Road Ahead Plan" seeks to redirect all fuel taxes to roads, generating an additional $1.2 billion for infrastructure without affecting school funding. However, details on compensating the School Aid Fund remain unspecified. This approach mirrors previous Republican initiatives supported by House Speaker Matt Hall.
Whitmer's proposal also aims to raise $1.6 billion through increased corporate contributions from companies like Amazon and Facebook, which utilize Michigan's roads extensively. Although specific tax measures are not detailed, possibilities include higher fees on large trucks and digital advertising.
Additionally, Whitmer suggests that cost-cutting could contribute $500 million to the funding pool. However, no specific areas for budget reductions have been identified.
The plan proposes a wholesale marijuana tax expected to generate $470 million. While toll roads and vehicle miles traveled taxes are not part of the strategy, it allocates $250 million for local transit projects without specifying funding sources.
House Speaker Matt Hall criticized government spending increases under Whitmer but acknowledged the need for a clear plan focusing on local roads. Senate Majority Leader Winnie Brinks expressed optimism about achieving a bipartisan solution for Michigan's long-standing infrastructure challenges.
Lance Binoniemi from the Michigan Infrastructure and Transportation Association supports both Whitmer's and Hall's plans, emphasizing the need for legislative backing to secure significant funding.
While some aspects of Whitmer's proposal remain undefined, it builds upon previous efforts such as her 2019 attempt at a gas tax increase. Representative Bill G. Schuette referenced past debates over tax proposals in his comments on social media platform X.
This article is provided courtesy of MIRS News for SBAM’s Lansing Watchdog newsletter.
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