The Governor and Legislature continue to negotiate the best way to raise additional revenues for our transportation network in Michigan. Despite what you may read or hear in the media, there has been some significant progress over the last month. All four leaders in the House and Senate, in addition to Governor Snyder, have made this their number one priority all summer long and have committed to the same for the late summer/early fall session, as well.
The current debate between all parties concerned is about how much new revenue should be raised and how much existing general fund revenue should be used to reach the bare minimum of $1.2 billion, needed annually. Earlier in the summer, the House passed a $1.1 billion plan that included almost all existing revenues from the general fund and raised just around $100 million in new revenue. In response, the Senate passed a $1.4 billion plan that included $700 million in new revenues through a 15 cent increase in the gas tax and $700 million in existing general fund revenue.
This past week, legislative leaders were debating a plan that raised $600 million in new revenues through a combination of a gas tax increase and registration fee increases and $600 million dedicated general fund revenues to transportation. After two long session days on Tuesday and Wednesday, the House, Senate and Governor couldn’t reach a final agreement on all of the details of the plan.
Not wasting any time, the four legislative leaders and the Governor met the following day to discuss how to move forward in the process. MITA continues to be involved with all parties concerned and will continue to push for a solution as soon as possible. Everyone is hopeful that the work done between the leadership and the Governor over the next two weeks can produce a solution shortly following the Labor Day break.
If you have any questions, please don’t hesitate to 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 at 517-347-8336.
