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February 25, 2019
February 2019 | Report 405 and Memorandum 1155

Evaluating Michigan's Options to Increase Road Funding

  • 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.
February 25, 2019
February 2019 | Report 405 and Memorandum 1155

Evaluating Michigan's Options to Increase Road Funding

  • 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.

Stay informed of new research published and other Citizens Research Council news.
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