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.

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1 Comment

    • If the tax increase enacted in 2015 that took affect in 2017 adds $ 600 million in funding (1.2 billion) to state controlled road funding on top of the high taxes we already pay why are roads in bad shape ? We need a full accounting before one more penny in taxes is added.

      William Freigruber
      March 9, 2019, @ 2:31 pm Reply

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