Michigan House Votes To Raise Taxes To Fix Roads

They just don't get it do they?  After a resounding defeat of

Proposal 1 that would have raised taxes to fix Michigan Roads, the Michigan House today approved a plan to shift hundreds of millions of dollars from the state's general fund and make other changes, including raising taxes ,aimed at putting nearly $1.2 billion a year toward repairing the state's roads.

Most bills were approved primarily along party lines Wednesday in the Republican-controlled House.

Along with many other changes, the 12-bill package would earmark $442 million from the general fund for roads in the fiscal year starting Oct. 1.That number would increase to $792 million in the 2019 fiscal year.

The plan would raise the diesel tax to 19 cents from 15 cents to match the gas tax and index both taxes to inflation. Registration fees would be raised by $30 on certain hybrid vehicles and by $100 on electric vehicles

Gov Snyder and Senate Majority Leader Alran Meekhof Looking To Raise Taxes For Roads After Proposal 1 Failed

They just don't seem to get it in Lansing.  After a major ass-

Gov Snyder & Senate Majority Leader Meekhof
Looking To Raise Taxes For Roads

whooping with the defeat of the $1.2 billion tax increase proposal 1, our tax and spend legislators in Lansing are looking for another way to raise our taxes.

Governor Rick Snyder Business leaders don’t believe finding $1.2 billion in additional road funds without raising taxes is possible.  Why is it not possible?  With proper cuts to wasteful programs such as the Michigan Economic Development Corp (MEDC) which promotescronyism, killing the film subsidies that have done nothing to help Michigan as a whole and other wasteful programs that should generate a good chunk of the revenue needed.  

Some loud voices that have friends in the media are screaming if we get rid of the MEDC we won't have any more "Pure Michigan" commercials.  Has anyone verified the effectiveness of these commericals and why do they play frequently in our State?  Why doesn't the MEDC invest more to atract out of state tourism?

Also Michigan's unemployment rate has dropped from 14.1% to a "reported" 5.4%.  Where is this additional income tax revenue going?

The Michigan House should stick with a tough love approach and push through the cuts to unneeded programs such as the MEDC.

Here is where the trouble likes two-thirds of senators, mostly RINOs Republicans In Name Only, are term-limited and won’t face voters again in their current posts. The hope is that they’ll feel more free to vote for tax hikes.  What they don't realize is that they will be remembered for when they try to find another political hole to fill.

The Senate lead by disappointing Senate Majority (non) Leader Alran Meekhof is expected to back a plan already floated to raise the fuel tax by 5 cents a gallon each year for three years. That 15-cent hike will ultimately produce $750 million, with additional money found by bringing diesel fuel taxes in line with those on gasoline, and perhaps raising vehicle registration fees.  Michigan already has one of the highest gas taxes in the country, yet the worst roads.  How do you explain that?

It is likely to make us look like they are working in our favor, the senators will also offer up spending cuts  largely from the estimated $500 million MEDC budget, including the possible elimination of much or all of the $50 million film subsidy. The cuts are expected to be about half what the House passes.

How to fix the roads without raising taxes

Senator Patrick Colbeck

On May 5th, voters will be asked to consider a ballot proposal that would seek to fix our roads by increasing our taxes.  Voters have been told that there are no other viable alternatives.  After much investigation, I believe that it is important that voters understand that there are indeed alternatives that merit further consideration.

Over the past four years, I served as Vice Chair of the Senate Transportation Subcommittee on Appropriations.  During this period, I have spent significant time with constituents and other legislators studying the serious problem of the deteriorating condition of our roads and bridges inur state. Furthermore, I have examined how Michigan’s road investments and road quality compare to other states.  As a result of these efforts, I have assembled no less than four viable options that would allow us to fix our roads without raising taxes.

The first of these options is a blast from the past commonly

referred to as “the Bolger Plan”.  This option had already passed the State House of Representatives last year but was replaced by the current road plan in the Senate.  Among other things, this plan would ensure that 100% of the taxes raised at the gas pump would go towards fixing our roads.  This option would add $149M to our road budget in the first year.

The second of these options is to simply prioritize the spending of existing funds.  This option features freezing general fund budgets with projected increases except for K-12 education, allocating 100% of “1-Time” spending to roads, using the Budget Stabilization Fund to “stabilize the budget”, and open up several restricted funds to allow usage of their fund balances to offset road maintenance costs.  This option would add $669M to our road budget in the first year.

The third of these options is to reduce our expenses.  These expense reduction opportunities can be broken down into MDOT cost reductions, non-MDOT government cost reductions, and the removal of Federal Regulations that drive the cost of road construction.  This option would not only address the quality of our road construction as a means of reducing total lifecycle costs; it would also address the quality of our government operations.  This option would yield at least another $53M to our road budget in the first year.

The last of these options is simply an “all of the above” option.  All told, we have the opportunity to put $869M towards fixing our roads in year one and apply over $1.4B towards maintaining our roads for each subsequent year.

I have focused on first year spending because, as a public safety issue, I believe that we need to demonstrate that we are committed to fixing the roads as quickly as possible.  The options outlined above would enable us to put $869M towards fixing the roads in the first year WITHOUT raising taxes.  For comparison purposes, Ballot Proposal 15-1 would only put $434M towards the roads in year one…and that is after increasing the taxes that you pay by $1.7B.  In other words, the sum total of these options improve the safety of our roads more than twice as fast as the Ballot Proposal…and it does so without any tax increases.

As a fellow taxpayer, I believe that these options deserve more consideration than the current dismissive commentary would indicate.  I encourage you to take time to explore these four alternatives.  There may be some who are opposed to these alternatives simply because they don’t believe that there are the votes needed to pass them.  As engaged citizens, it is our duty to keep pressing and ask “why”.  Why are film credits a higher priority than roads?  Why are we putting money away into restricted funds that sustain lower priority programs at the expense of putting more resources towards road construction?  Why don’t we build roads that last longer?

It is important for us all to realize that there are indeed ways to fix our roads without taking more money out of your wallets.  More information on these options is available in the Solution Center at MorninginMichigan.com.

Patrick Colbeck

State Senator, 7th District

Norm Hughes: Call In Ask Michigan Governor Snyder Tough Questions On Sales Tax

Norm Hughes

Here is your chance to ask Gov. Snyder: TOMORROW MORNING CALL IN!

 1) Why he will not repeal prevailing wag laws and save taxpayers $400 million a year ($224 Million on just school construction), or apply that savings to roads? 

2) If threat to life and damage to cars is such a threat, why is Only $400 million of the $2.2 Billion tax increase the first year going to roads? 

3) Why is only $800 million dedicated to roads the second year?

 4) What does throwing more money at schools, mass transit, earned income tax credits have to do with fixing roads? 

5) The Senate Fiscal Agency says the general fund budget and school aid fund will both increase be more than $2 Billion over the next three years. Why is that not enough to fix roads? 

6) The number of Public School students has been decreasing by a few thousand each year, but Republicans have been throwing another $250 million a year at schools. Why does this proposal guarantee another $300 million a year, even if the number of students keep decreasing. 

7) Why are you stubbornly refusing to look at other options that will fix roads without increasing taxes? Here is your chance to ask him: Do you have a question about fixing Michigan's roads, the River of Opportunity, the state budget, or any number of issues related to state government? 

You can ask Governor Rick Snyder your questions, and he'll be answering them live on Michigan Public Radio's Michigan Calling show on Monday, March 9 from 9 a.m. to 10 a.m. You can listen live on all public radio stations across the state or watch the live stream at michiganradio.org. 

Listeners with questions can call 866-255-2762. Questions can also be submitted in advance and during the broadcast via social media using the hashtag ‪#‎MICalling‬ on Twitter or by posting on the “Michigan Calling” page on Facebook.