State Legislature Passes Comprehensive Road Funding Plan, Awaiting Governor’s Signature

November 9, 2015

Good News! The State House and Michigan Senate last week came to an agreement on a comprehensive solution to fix Michigan’s roads through a combination of reforms, re-prioritization of funding, and new revenue. The Michigan Chamber has been a strong advocate for increased funding for Michigan’s crumbling road system and we applaud Senate Majority Leader Arlan Meekhof, House Speaker Kevin Cotter, and every legislator who stood up for Michigan motorists by supporting a reasonable plan to accomplish this critical legislative agenda item.

Voters spoke loudly last spring when they said they wanted roads fixed through a legislative solution. The plan gradually raises a total of $1.2 billion for use on roads only, through a small increase in gas and diesel taxes, a small increase in registration fees and earmarking future revenues towards roads. The plan also requires competitive bidding for road building and improved warranties on built roads. As part of the overall proposal, the plan includes tax relief for lower wage earners as well as the potential for future income tax reductions.

All in all, the plan represents a balanced and reasonable approach to putting money into Michigan roads, maintaining fiscal restraint, and protecting lower income wage earners. The Governor is expected to sign the package this week.

View a statement from Michigan Chamber President & CEO Rich Studley on the new road funding plan here.