On Wednesday evening, the Michigan House of Representatives passed a road funding proposal that will increase investment levels for Michigan’s transportation system by $1.2 billion annually once fully implemented. The revenues would be generated by a combination of the following: a gas tax increase, registration fee increases and reprioritizing the state’s general fund budget. The measure was passed with nearly all Republican votes and only one Democrat supporting the proposal.
The plan would be fully implemented by 2021, which is something MITA staff is working to have accelerated. As passed by the House, an additional $393 million in 2017, $438 million in 2018, $769 million in 2019, $955 million in 2020 and $1.243 billion in 2021 would be added to our transportation system, (in addition to our current investment levels), according to the House Fiscal Agency. The additional revenue comes from an increase in the gas tax by 3.3 cents, increases to the diesel fuel tax to bring it in line with gasoline, a 40% increase in vehicle registration fees and $600 million from the state’s general fund.
The next step in the process is for the Senate to consider the measure. Early indications are that the Senate is interested in several aspects of the proposal, but that they also share MITA’s opinion that there could be a faster ramp up to the full $1.2 billion implementation. We will work with the Governor’s Office and the Senate to see if there are any chances of accelerating the time frame. A big concern is that the general fund money could put a strain on the state’s budget if ramped up too quickly.
Things could potentially move rapidly from here, as the Senate could take the measure up as early as next week. We will continue to update the membership as things develop. If you have any questions or concerns, please contact Mike Nystrom, Executive Vice President, at mikenystrom@mi-ita.com or Lance Binoniemi, Vice President of Government Affairs, at lancebinoniemi@mi-ita.com. They can also be reached at the MITA office by calling 517-347-8336.
