With cherry pies in high demand in Michigan as the summer kicks into high gear, lawmakers there seem to be on a sudden sugar high when it comes to finding money for the state’s ailing infrastructure.
The Senate gave the nod to a three-year $1.5 billion plan to aid road and bridge work that calls for a gas-tax increase and shifting money over from Michigan’s general fund. In mid-June, the House passed a measure calling for about $1.2 billion to address the issue.
“Michigan’s citizens are demanding action and we are confident that leaders in the House and Senate can work together to resolve any differences and enact a final solution to Michigan’s road-funding crisis before Labor Day,” said Jim Holcomb, general counsel for the Michigan Chamber of Commerce.
The Senate plan calls for a 15-cent (5-cent increments over three years) increase in the state gas tax as well as annually pulling $700 million from the $9.9 billion general fund. The diesel tax will be aligned with the gas tax, future inflationary adjustments will be made after the gas tax hits 34 cent per gallon and hybrid/electric car fees will be increased. Taxpayers also will receive an income tax reduction equal to the amount the general fund increases above inflation.
The House blueprint earmarks $900 million in general funds for road and bridge construction. It matches the Senate’s diesel tax adjustment and the call for hybrid/electric vehicle registration increases, but also calls for a $135 million cut in economic development spending.
