Michigan Governor Rick Snyder delivered his special message on infrastructure and transportation Wednesday from Lawrence Technological University in Southfield . Noting that the issues may not inspire the same level of passion as his messages on other items such as education, the Governor stressed the importance of no longer taking our infrastructure for granted.
The Governor’s remarks focused on three items, the potential consolidation of road commissions, an examination of the road funding formulas, and vehicle registration fees.
Road Commission Reform: Michigan has 617 road agencies; a number the Governor claims is too high. Snyder’s proposal would allow counties to transfer authority from road agencies to the counties themselves. Additionally, the message included criteria road agencies would need to meet to receive state transportation dollars, including competitive bidding on contracts and the development of management plans for federal highways and bridges.
Road Funding Formula Reform: Michigan’s current road funding formula, though extremely complicated, puts roughly 39 percent of Michigan Transportation Funds into the state’s hands, 39 percent into the counties’ hands, and 22 percent in the hands of municipalities. The Governor’s message, while providing little detail, calls for essentially scrapping the formula and starting over on a structure that will bring the highest funding to those roads with the most lanes, most traffic, and most travel through commercial areas.
Vehicle Registration Fees: While being careful not to specifically call for the increase, yet put it on the table in a self-described attempt to begin the discussion, the Governor described how a $120 per-vehicle increase in registration fees would raise nearly $1 billion for road funding.
The Governor’s remarks also included a reiteration of his desire for the Legislature to pass the New International Trade Crossing (NITC) authorization measures for a new span from Detroit to Windsor . Additionally, Snyder discussed his desire to replace the current 19 cent per gallon gas tax with a lower rate tax at the wholesale level.