Governor Gretchen Whitmer released a road-and-transportation funding proposal Monday that includes a new tax on marijuana products, more revenue from a business tax aimed at big tech companies, and unspecified budget cuts.
The Democratic governor said it’s a long-term plan to raise $3 billion annually for roads, bridges and public transit.
“Today, I’m excited to introduce my brand-new plan that provides a long-term, sustainable solution to fix our roads so we can help more Michiganders stay safe on the road, save money, and get where they’re going faster,” said Whitmer in a statement released by her office. “My plan is fiscally responsible and balanced, with both new revenue and cuts so we can lower costs for families.”
The proposal is not specific on many details, but Whitmer aides say the goal is to set some broad outlines to bring to the bargaining table as Republicans take aim at state spending in general and specifically at taxpayer-funded business incentives. House Republicans have rolled out a competing transportation proposal.
“Michigan families expect results — that’s why our plan focuses on real solutions, including prioritizing funding roads over funding corporate earmarks, making the most out of our current budget instead of raising new taxes, and fixing local roads first,” Hall said in a statement. “Roads and infrastructure are essential, and we must get this right.”
There are a couple of commonalities in the Whitmer and GOP plans — they seem to agree that the revenue target is an additional $3 billion annually for roads and infrastructure. They also seem to agree that the 6% Michigan sales tax on fuel purchases should go to infrastructure.
“We’re excited that there actually is a plan,” said Rob Coppersmith with the Michigan Infrastructure and Transportation Association, a construction industry organization. “So, we are excited that the issue is even being talked about and discussed and that people understand the importance of properly funding our infrastructure.”
Whitmer aides say Michigan’s current road funding design does not match the realities of modern economics, including marketing and retail services that have moved online.
“That’s why the governor introduced this plan today for a sustainable road funding solution that reflects our current needs, lowers costs for commuters and makes the companies that use the roads the most pay their fair share,” said Zachary Kolodin, Whitmer’s Chief Infrastructure Officer. “This plan will make big-tech industries like Amazon or X or Tik-Tok led by the nation’s wealthiest individuals pay their fair share to do business in Michigan and use Michigan’s roadways.”
While Republicans are not sold on the plan, some GOP lawmakers say they see room to bargain.
“One part of the plan is kind of tax neutral,” said Representative Donni Steele (R-Orion), who chairs the House Appropriations Subcommittee on State and Local Transportation.
“That one part I think we can agree on. But the raising of the taxes is something that I think we won’t agree on. I think there’s enough room in the budget to fund the roads without raising taxes.”
