LANSING, Mich. — Summer construction season may be over, but the conversation in Lansing is just heating up.
Now, some amongst the Michigan House GOP, set to take its majority in January, are proposing a new plan on what to do to fix local roads here in the state.
"How nice would it be if we ended this year with a roads plan that funded our roads fully, and people could have confidence that their local roads were going to be fixed," House Minority Leader Matt Hall (R-Richland Twp.) said at a Monday press conference. "People would love that."
Hall, who is set to become the next speaker of the House, laid out a new proposal first unveiled by his office Friday. In it, he and his allies have sought to offer a potential step in getting state roads the funding some believe they desperately need.
It comes as, in Hall's view, emphasis has been placed more heavily on federal and larger roadways at the expense of more local routes.
"What we propose is, you know, kind of flipping this formula a little bit and for this new money, making sure it goes to our local county roads, our local city roads, our village roads," Hall said. "You know, flipping it so more of it goes to those places, because that's where the need is."
The plan calls for nearly $3 billion in newly allocated funding sources for infrastructure - much of it geared toward local roads.
According to Hall's office, the plan proposes collecting the roughly $2.7 billion in funds through three different avenues over varying timeframes:
- $1.2 billion through immediate allocation of annual corporate income tax revenue
- $600 million from corporate income tax money that would be reallocated in next year's state budget from earmarks being funded in the current budget
- An estimated $945 million through a proposal to replace the state's current sales tax on fuel with an increase in the state's motor fuel tax
While the sales tax on fuel can be applied to other areas, revenue from the motor fuel tax, according to Hall's office, can only be used toward infrastructure.
These parameters and the potential switch sparked questions surrounding whether it may potentially siphon resources from education funding in particular.
Hall asserted, however, that suggestions he's offered on how to backfill education funding would, if enacted, suffice if necessary.
Such, he said, could include dedicating income tax revenue, dedicating restricted fund money and re-allocating money from work projects, among other potential avenues.
"I've told you that our plan is going to hold schools harmless," he said.
"If there's a hole in school funding, I'll vote no on my own bill," said State Rep. Tom Kunse (R-Clare), who the lawmakers signaled was set to introduce legislation meant at enacting parts of this proposal. "That's where we're dedicated. The team is dedicated. That's not going to happen."
One group that has signaled these local roads are in need has been the state's County Road Association (CRA).
"This is not par for the course," said CRA CEO Denise Donohue when asked about the current deficit local road funding currently faces.
Every other year, Donohue explained, the CRA crafts what it refers to as a County Road Investment Plan meant to measure county needs.
The data they've collected, Donohue said, suggests sizeable underfunding.
"So, amortizing [funding] over 50 years, we've come up with a figure that we are, in fact, $2.4 billion underfunded, just for the county portion of the road network," Donohue said.
In a statement to 13 ON YOUR SIDE, a spokesperson for Democratic Governor Gretchen Whitmer offered a response to the GOP's plan.
"By the end of this construction season, we will have rebuilt or repaired nearly 23,000 lane miles and 1,600 bridges, supporting 118,000 jobs," the statement read in part. "We agree on the need for a long-term funding solution, and Governor Whitmer will work with anyone who is serious about getting things done."
While more discussion may be on the way, CRA leadership signaled they are hopeful as they see dialogue from both sides.
"That's what makes my heart tickle and laugh and smile, is the fact that they are talking about this and they are willing to listen to ideas and concepts, and, you know, trying to hold everybody harmless, but yet doing the right thing," said CRA Chief Deputy and Legislative Director Ed Noyola.
But what more discussion might there be?
As more fuel-efficient vehicles hit the market, some have signaled support for phasing out the current fuel tax in favor of a mileage-based tax to, in their view, more evenly distribute infrastructure costs among all drivers.
"40% of what funds Michigan roads at the state level, the state funding that goes into roads, is from fuel tax," Donohue said. "We're selling, right now in Michigan, fewer gallons of gas than any time in the last 25 years, with the exception of the stay-home year, which was the pandemic."
According to statistics provided by CRA that cited the Michigan House Fiscal Agency, revenues from the fuel tax spiked in 2017 and 2018 amidst the first full year of an increase to the tax rate.
But since then, Donohue estimated from the numbers, fuel tax revenue in 2023 had only increased 1% compared to 2018 levels, following a low year in 2020 and a subsequent recovery.
"So, when I speak to my road agencies and say... 'In five years, if any of you had your costs go up only 1%, please raise your hand," Donohue said, making clear such a question was meant as a joke.
The idea, Donohue explained, would replace the fuel tax with the mileage tax over time, rather than have both at full strength simultaneously.
"[The fuel tax and potential mileage tax are] not and-both," she said. "It is as the mileage-based program comes up to speed, the gas tax goes away."
At Monday's press conference, Kunse seemed open to the suggestion.
"We're all for 'If you use the roads, that you have to pay for that,'" Kunse said. "That's just not part of the plan. It's such a small percentage right now."
"We're not saying it's not important a part of part of the plan," he later said. "But let's get the big piece first. So, we're going to address that. I just don't think we can get that detailed yet."