Advocacy News – May 7, 2025
What happened: Last week, the Senate Appropriations Subcommittee on Transportation released their budget that includes language authorizing $3 billion in contingency spending if a long-term road funding plan were to be negotiated with the House. Totaling $6.9 billion, the Senate’s transportation budget contained more than the governor’s $6.8 billion in spending.
What’s included: Under the Senate bill, there is language that outlines general recommended uses for the $3 billion contingency funding. These include long-term funding for local roads and state trunkline needs, additional state funding for local bus and transit services, increased funding for passenger and freight rail services and for critical infrastructure including bridges, non-motorized infrastructure, and emergency and disaster response needs.
- The list of uses for the contingency monies also includes “a revised road funding distribution formula” that would account for the lane miles of local roads and prioritizes local roads that are in poor condition and have high traffic volume.
What’s next: When asked if the Senate Democrats might release its version of a road-funding plan this spring, Senator Klinefelt, chair of the subcommittee, said she did not feel it was something the caucus needed to have a decision on at this time. This continues to leave the question open-ended as to whether Senate Democrats are serious about finding solutions to road funding with the House and Governor, who have both made a road funding solution a priority.
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⚠️: A corporate income tax (CIT) hike is in play. Assistant Senate Majority Leader Darrin Camilleri, speaking on Off the Record (May 2), directly cited the CIT as “just too low“ when asked about road funding revenue, suggesting that a CIT increase or closing other tax “loopholes” wouldn’t impact everyday people. But the facts tell a different story, companies paying the CIT are small businesses with fewer than 100 employees – the very definition of “everyday people” with real impact in local communities across the state.
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Learn more about why the proposed CIT hike is bad for Michigan.
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What we’re saying: On a recent episode of our Mi Business Matters podcast, the Chamber sat down with two key infrastructure experts on the importance of finding sustainable solutions, especially as the $3.5 billion in state bonding issued several years ago begins to run dry.
- 🎧 Listen now to better understand how Michigan funds its roads —and the current state of negotiations.