The Michigan Legislature missed its deadline this week to finalize a plan to fund revamping state roads. Because of the delay, it won’t be on the ballot this May.
For students, this means an increase at the pump or at the register won’t happen for at least a few more months.
Lawmakers have been developing multiple financial plans to carry out Gov. Rick Snyder’s goal to fix Michigan’s infrastructure — a plan outlined in his State of the State address months ago — but have yet to come to an agreement. The goal is to raise $1.2 billion to fund the project.
If lawmakers wants to change the sales tax, they must pass a constitutional amendment, which calls for a public vote.
Sen. Roger Kahn, R-Saginaw Township, is one of the lawmakers heading the efforts. His chief of staff Holly Fountain said because they missed the May ballot deadline, the goal now is to figure out a plan before summer.
The proposal could appear on a ballot as early as August or November, and Fountain said the team is aiming for August.
She said just about every plan to fund the road project is on the table. The plan to fund Michigan’s road construction receiving the most attention is increasing Michigan’s sales tax from 6 percent to 7 or 8 percent.
“The problem is that the number that really has been floated is maybe a 1 percent increase in sales tax but that does not get us to our goal,” Fountain said, referring to the state’s goal to reach about $1.2 billion.
The other plan receiving attention is taxing gasoline at the wholesale level and increasing vehicle registration fees.
Michigan is among nine states that tax gasoline, and it’s below the highest tax at 7 percent in Connecticut and Indiana, according to The Tax Foundation.
Fountain said the groups working on the proposals are trying to find the least regressive tax, which would end up costing Michigan more money.
She said a gas tax would be regressive because as technology advances, more people buy electric cars and use less gas, which means less revenue. A sales tax can be regressive if the economy is bad and consumers aren’t buying as much, but it isn’t as regressive as a fuel tax.
In East Lansing, Michigan Avenue is undergoing government-funded construction that has narrowed the street to one lane. Road work is slated to end April 26, according to the Michigan Department of Transportation.
University engineer Bob Nestle said bad roads often slow traffic down, which can have a negative effect on state commerce. Still, he said it is fortunate for students the city chose to fix roads surrounding campus.
Snyder placed heavy emphasis on roads, bridges and harbors during his State of the State address because Michigan residents, on average, spend $81 more than those in surrounding states because of bad roads.
“I have done hundreds of town halls in Michigan and I have asked the question, ‘Does anyone in Michigan like their roads?’” he said during the address. “I have not seen any hands go up, after 100-plus town halls. It’s time to do something, folks.”
Support student media!
Please consider donating to The State News and help fund the future of journalism.
Discussion
Share and discuss “Legislators miss deadline to put tax hike on may ballot” on social media.