Governor's Road Funding Plan Hits First Hurdles

Senate Majority Leader Randy Richardville (R-Monroe) stated this week that he is not currently supportive of Governor Rick Snyder’s proposal to raise $1.2 billion in additional revenue for transportation and infrastructure.

The Governor has proposed an effective 14 cent increase in the gas tax (from 19 cents to 33 cents, but on a wholesale level formula) and a sharp increase in vehicle registration fees of 60 percent for automobiles and light trucks and 25 percent for heavy trucks.

It is the latter portion of the Governor’s proposal, the registration fee increases, that also has received opposition from Secretary of State Ruth Johnson.

The legislative committee leaders both appear a bit more apprehensive in removing anything from the table as discussions have really just begun formally with this week’s first joint hearing. The House Transportation and Infrastructure Committee is chaired by Representative Wayne Schmidt (R-Traverse City) and the Senate Infrastructure Modernization Committee is chaired by Senator Roger Kahn (R-Saginaw).

Secretary of State Johnson indicated that the registration fees are already in the upper half of those from other states; however, the transportation taxes have not been increased since 1997.

posted by PAA Online , Friday, February 15, 2013 10:12 AM
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