Possible Bipartisan Michigan Road Deal
Apparently there may be a new bipartisan road funding bill brewing in Michigan’s legislature.
The Detroit News is reporting on a new deal emerging from both the Michigan Senate and House forged by four Republican and Democrat leaders of the Senate and House.
The details of the new deal are still not finalized but it appears the four leaders have agreed in principal on a ratio of $800 million in new taxes, or as the politicians like to say “new revenue” and $300 to $400 million in “reprioritized” general fund spending.
As being reported by the Detroit News the new formula is as follows:
- a 9-cent increase in the fuel tax,
- an average hike of $50 per vehicle in the registration fee,
- bringing diesel taxes in line with gasoline taxes and raising fees and
- fines on heavy trucks, the sources said.
House Minority Leader Tim Greimel, D-Auburn Hills, is quoted in the article saying “We are as close as we’ve been to a bipartisan deal and I’m more optimistic than I’ve been this term.”
The bill will first start off in the Senate and then move on to the House.
The difference in this bill as opposed to all the other ones is that it is Bipartisan thus it has a better chance of passing in both the Senate and the House.
House minority leader Greimel wants a larger share of the new taxes to come from corporations. As I have always stated corporations do not pay taxes they simply pass the cost on to their customers. So that means our taxes and fees will be raised.
Should a portion of the road funding cost be raised by increasing our taxes and fees?
If so, what percentage should be in new taxes and fees and how much should be reprioritized spending?
Also remember that the latest general fund budget already contains $400 million for roads, and I believe much if not all of that funding is coming from increased taxes flowing into Michigan coffers and not reprioritized spending.
I wrote a blog about the increased taxes coming into Michigan's treasury that could be used to fund Michigan's roads.
My first thought was why could there not be at least a 50/50 split between increased taxes and fees.
Right now it looks like the split could be 70% in increased taxes and fees and 30% in reprioritized spending.
Let’s discuss this today on my show, The Live with Renk show, which airs Monday through Friday 9 a.m. to noon, to let me know your thoughts at (269) 441-9595.
Or please feel free to start a discussion and write your thoughts in the comment section.