Road Funding Discussions Halt

Governor Rick Snyder cancelled Wednesday’s Legislative Quadrant meeting after declaring Tuesday’s strategy meeting left the quadrant at an impasse in attempting to raise the $1.2 billion funds for roads. These meetings include Governor Snyder along with quadrant members House Speaker Kevin Cotter (R-Mount Pleasant), Senate Majority Leader Arlan Meekhof (R-West Olive), Senate Minority Leader Jim Ananich (D-Flint) and House Minority Leader Tim Greimel (D-Auburn Hills). Since the cancellation, Senator Meekhof and Representative Greimel have expressed a difference of opinion regarding a proposed tax relief in the proposed package.

The current Senate plan includes an income tax rollback that would include, in part, a gas tax hike. The rollback reduction would only be allowed if the revenue grows, but there would be no bottom rate for how far the income tax could fall. Unofficially, the road funding package is expected to receive $400 million from the gasoline tax, $400 million from other new revenues such as ending the depreciation on vehicle registration fees in the first years of ownership, and $400 million from the General Fund.

According to Senator Meekhof, the tax cut was part of the package from the beginning, and he is having trouble understanding why Representative Greimel is now disagreeing. In response, Katie Carey, the spokesperson for Representative Greimel, said the Representative feels the income tax will only aid the wealthier residents, and he also has some concerns about the hit to the General Fund.

Governor Snyder has announced that he has no plans to schedule meetings until the impasse has been solved. Both Senator Meekhof and Representative Greimel have requested the meetings continue. Speaker Cotter is also continuing negotiations with House Republicans to find a solution.

posted by PAA Online , Friday, October 16, 2015 10:28 AM
LINK DIRECTLY TO THIS ARTICLE

This Week's Newsletter

Past Newsletters