February 2019 | Report 405 and Memorandum 1155
- In 2015, Michigan enacted a funding package that will eventually generate $1.2 billion annually for state and local road projects. Even after it is fully implemented, the state will continue to be plagued with poor road conditions.
- Resources to address our current road needs can come from three main sources: increasing dedicated taxes, diverting existing state revenues, and/or borrowing. Each choice presents its own set of advantages and obstacles.
- Michigan taxpayers will be well served if reforms: disentangle motor fuels from the Sales Tax, prudently use all available resources for this funding priority, use bonding authority judiciously, and address how revenues are distributed and employed.