Original story published by Gongwer News Service – 8/22/2011
House Transportation Committee Chair Paul OPSOMMER (R-DeWitt) said he believes he has enough bi-partisan support to push a new plan to divert money from the general fund into road construction, but others have suggested it might take more than that to fix Michigan’s transportation systems.
Opsommer wants to divert part of the 6-percent use tax now collected on the sale of gasoline for roads.
“It’s got good support informally,” he said.
He told MIRS he rejects any notion of hiking the gasoline tax, which has not been raised since the dying days of former Gov. John ENGLER. Senate Majority Leader Randy RICHARDVILLE (R-Monroe) ruled out a gas tax increase earlier this month, but said he’s open to looking at changing how roads are funded (See “Richardville Nixes Gas Tax Hike,” 8/4/11).
Currently, 4 cents from the 6-cent tax goes to schools with another 1.5 cents earmarked for local governments. The remaining half-penny ends up in the General Fund, which means it is available for a variety of state services.
Tagging that for the roads would not raise the billions of dollars the road-building lobby would like to have, Opsommer acknowledged, but he said he thinks it could help. The lawmaker said he expects possible movement on legislation this fall.
Michigan Chamber of Commerce President and CEO Rich [STUDLEY] said the Chamber supports a user-fee based system to help deal with what he calls the “old problem” of funding fixes for Michigan roads, bridges and public transportation.
Michigan could see a one-third funding cut from the federal government for public transit under the deficit deal, which adds to the problem, Studley said.
“Now more than ever we need a Michigan solution to a Michigan problem,” he said.
Studley said the Chamber plans on working with the Legislature on both sides to see if they can achieve a major breakthrough in the issue this fall.
“I think there is a growing consensus and growing concern in the business community that we need to substantially improve how we approach roads and bridges and public transit,” he said. “At the Michigan Chamber, we’re recommending the goal has to be to work harder and work smarter and challenge MDOT (Michigan Department of Transportation) and road agencies to be more efficient.”
It will take more than improving efficiency to fix roads and bridges that have been given temporary fixes for years, Studley said. In the next few years the state will need to roughly double its investment in transportation, he said.
“There’s clearly a need for additional revenue,” he said. “We have to be certain any additional revenue is carefully targeted to produce the maximum return on investment.”
Raising revenue could gain ire from some legislators, but Studley said it is time to recognize Michigan’s key industries — manufacturing, tourism, and agriculture — depend on good roads, bridges, rails, airports and ports. Fixing and maintaining those systems can be accomplished by Michigan companies “ready and willing to do this,” Studley said.
“Frankly, I’m tired of meeting with lawmakers who want good roads but don’t want to pay for them, so we’re going to challenge those people,” he said. “If they don’t like one solution, what is their alternative?”
Studley also pointed to neighboring states like Ohio and Indiana that made “major” improvements to their transportation systems recently.
“No one in the House or Senate is being asked to do something that’s impossible,” Studley said. “We’re not asking anyone to build a rocket ship to Mars.”