House Still Divided by Party Lines on Road Funding

According to Speaker of the House Kevin Cotter (R-Mount Pleasant), the final road package from the House will have both new sources of revenue and re-prioritized funding. Mr. Cotter stated that the new revenue streams would come in the form of a gas tax increase, smaller than the 15-cent increase passed by the Senate, and an increase in registration fees.

The road package released by House Democrats differs greatly than the one Mr. Cotter has in mind, including a 3 percent increase, from 6 to 9 percent, in the Corporate Income Tax, a decrease in weight limits for commercial vehicles, an increase in registration fees for trucks, and the renegotiation of the Michigan Economic Growth Authority; the plan would raise $1.2 billion Authority tax credits. According to House Democrats the plan will protect middle class families in the state, while increasing the taxes paid by businesses.

While the Democrats have presented a plan, it has received harsh criticism from House Republicans including Speaker Cotter and Representative Al Pscholka (R-Stevensville), chair of the House Appropriations Committee. House Minority Leader Tim Greimel (D-Auburn Hills) has said that both the Governor and the Speaker have rejected his attempts to meet on the road funding issue, leading many to believe that if a transportation solution is passed it will by with largely partisan support.

Former House Fiscal Agency Director Mitch Bean stated that Michigan’s 23 percent decrease in the General Fund, when adjusted for inflation, is the greatest cut in the nation. He also stated that if Senate Bill 414, a bill to roll back the income tax, was to be put into place the legislature would have to cut between $450 and $550 million from the 2017-18 fiscal year budget.

posted by PAA Online , Friday, July 17, 2015 10:24 AM
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