"The right to criticize government is also an obligation to know what you are talking about."
-Lent Upson, first director of Citizens Research Council
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To help inform the road funding policy debates in Lansing and educate Michiganders on this topic, the Citizens Research Council completed a comprehensive assessment of Michigan’s reported funding levels compared to other states. First introduced in June 2024, the Research Council’s State Road Funding Index uses several federal datasets and methods of analysis to create a first-of-its-kind method to quantify and rank each U.S. state’s road funding.
This 2025 update adopts the latest available federal data, resulting in Michigan improving its ranking from 30th to the 28th most well-funded state.
IN A NUTSHELL
-- Michigan is the 28th most well-funded state in the nation for road funding, according to the 2025 update of the Citizen Research Council’s Road Funding Index.
-- The Index score and ranking are derived from financial data from all 50 states as reported by the Federal Highway Administration and U.S. Census Bureau. The analysis incorporates ten years of revenue and expenditures, from 2013 to 2022.
-- While Michigan has struggled to provide adequate revenue in years past, Michigan’s road program is now reasonably well-funded. Policymakers should use this opportunity to evaluate the performance of Michigan’s 615 road agencies and ascertain that funding is being distributed and invested effectively.
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'One Big Beautiful Bill' Blows A Billion Dollar Hole In Upcoming State Budget
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IN A NUTSHELL
-- The OBBBA increases state cost-sharing within two major safety net programs – Medicaid and the Supplemental Nutrition Assistance Program. The changes could increase Michigan’s spending on these programs by over $1 billion by FY2032.
-- It also implements more favorable tax treatment of certain business expenditures under the federal corporate income tax – changes that will have ripple effects on Michigan’s corporate income tax collections, leading to large and immediate revenue declines ($677 million revenue reduction estimated for FY2026).
-- These provisions mean the state will need to cut around $1.1 billion in General Fund/General Purpose appropriations from the FY2026 Executive Budget proposal. By FY2032, OBBBA’s provisions will absorb around 40 percent of expected General Fund revenue growth.
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Listen to veteran television and broadcast journalist Guy Gordon speak with Robert Schneider, senior Research Council associate, about Schneider's recent paper analyzing the One Big Beautiful Bill Act (OBBBA), the massive federal legislation signed into law last month, touching nearly every corner of the federal government and leaving a $1.1 billion hole in the upcoming Michigan budget.
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The Research Council in the News
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State Budget Talks Still Ongoing, But Deadline Deal Still Uncertain, TV19News (August 6)
No Signs Leadership ‘Triangle’ Has Met Since July 1, MIRS News (August 6)
Whitmer meets with Trump at the White House again – this time, privately, Crain’s Detroit Business (August 5)
Whitmer meets with Trump, seeks delay on Medicaid change that will cost Michigan, Bridge Michigan (August 5)
4 things to know about Trump’s tax bill creating a projected $1.1B hole in Michigan’s budget, MLive (August 4)
Victory OK with brief shutdown to reset state fiscal course, Gongwer News (August)
Michigan think tank weighs in on “Ax MI Tax’ proposal, WSJM (August 1)
Michigan think tank warns of “huge implications” in Ax MI Tax initiative, Moody on the Market (August 1)
GOP’s Big Beautiful Bill takes ‘dramatic’ bite out of state budget. Implications are massive Michigan Public (August 1)
Trump’s ‘beautiful bill’ will create big Michigan budget hole, report says. What about a roads deal? MLive (July 31)
Michigan faces $1.1 billion shortfall from federal budget changes, 9and10News (July 31)
Guy Gordon ‘Back In the Saddle’ Hosting a Podcast, Deadline Detroit (July 31)
Trump tax cut law blows $1.1B ‘hole’ in Michigan budget, new report warns, Detroit News (July 30)
Report: ‘Big, beautiful bill’ will blow $1.1 billion hole in Michigan budget, Bridge Michigan (July 30)
Analysis find state will shoulder $1.1B in spending cuts under One Big Beautiful Bill Act, Michigan Public (July 30)
CRC Report: State Needs To Cut $1.1B from Negotiated Budget for Big Beautiful Bill Hit, MIRS News (July 30)
Citizens Research Council: Trump tax, spending plan will mean $1.1B hit to Michigan budget, Michigan Advance (July 30)
Citizens Research Council projects $1.1B hole in FY2026 budget due to federal tax changes, Gongwer News (July 30)
Trump’s megabill threatens safety net for millions of struggling Michiganders, Metro Times (July 30)
Michigan budget picture clouded by Trump megalaw’s business tax cuts, Crain’s Detroit (July 30)
Citizens Research Council: Trump tax, spending plan will mean $1.1B hit to Michigan budget, News From The States (July 30)
Whitmer’s Michigan: Roads remain ranked 40th nationally for second consecutive year, The Midwesterner (July 29)
Road Woes: Michigan ranks 40th in study of overall road conditions, Fox17 (July 29)
Big expectations, vital priorities await Detroit’s next mayor, Crain’s Detroit (July 28)
Job one for new mayor: Ease the tax burden, Crain’s Detroit (July 28)
Macomb County voters to consider public safety millages, school bonds, New Baltimore mayor, Detroit News (July 27)
Michigan drivers pay top gas taxes but still hit potholes, Capitol Confidential (July 25)
Here’s how Michigan ranks in new roads report, WKAR Public Media (July 24)
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Citizens Research Council of Michigan
Livonia 734.542.8001 | Lansing 517.485.9444 | Holland 616.294.8359
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