A divided Michigan Senate failed to vote Tuesday on a $1.2 billion road-spending plan after majority Republicans opposed a House-approved 40 percent hike in vehicle registration fees in 2016.
Advertisement
On the other side Senate democrats are not happy with the House plan. The plan calls for shifting $600 million from the general fund into roads, phased in over the next five years, while raising $600 million in new revenue by raising the state tax on a gallon of gas and hiking vehicle registration fees.
Instead of putting the bills passed by the House late Wednesday night into a committee for hearings, the Senate put the bills right on the full Senate agenda to begin debate on Tuesday.
“We’ve said for quite a few time we think a $1.2 billion problem needs a $1.2 billion solution, and the House plan gets there”, President and CEO Rich Studley said Monday afternoon.
– a dedicated annual shift to roads from the $9.9 billion general fund – Michigan’s second-largest account behind the school aid fund – starting at $150 million in the 2018-19 fiscal year, $325 million in 2019-20 and $600 million in 2020-21 and beyond. Another 600 million dollars would have been taken from existing tax revenue. One thing it’s looking at is setting aside $100 million for future road projects once better materials are available.
The Senate started early Tuesday with lengthy Republican and Democratic party caucuses, closed-door meetings to count votes on the proposed measures.
Innovation and 50-year road fixes are a theme sounded by Sens.
The plan, including a boost in the Homestead property tax credit, would divert a total of $806 million from the state’s $10-billion general fund. And it wouldn’t fully implement the $1.2-billion year road fix budget increase until 2021.
Tie the gas tax to inflation, starting on October. 1, 2022. After 2021, both would go up annually at the rate of inflation or 5 cents, whichever was lower.
“Obviously there was a lot of heartburn over the registration part of this plan”, Senate Majority Leader Arlan Meekhof told reporters after a six-hour session.
Advertisement
There are mounting pressures on Michigan’s budget.
