NewsRoom
5:13 pm
Wed May 7, 2014

House Panel OKs First Parts Of Road Funding Plan

A pair of state House panels Wednesday voted on the first elements of a plan to raise more money for fixing roads.

Among other things, the legislation would ensure more sales taxes paid at the pump go toward road repairs.

The Michigan Public Radio Network’s Rick Pluta reports.

The road funding plan could be voted on by the House next week. It puts more money from sales taxes on fuel toward roads without reducing what’s already earmarked for schools and local governments. It would also raise the diesel tax so it’s on par with the tax on gasoline, and both would be taxed based on the price of fuel, rather than per gallon. That would allow revenue to increase as the price of fuel goes up.

Jeff Cranson of the Michigan Department of Transportation says it’s a good start.

“It’s all a good package, but we still need more, and the discussions will continue,” he says.  “But I think getting this much done is a really good sign.”

Governor Rick Snyder has called for an additional $1.2 billion a year in new revenue for transportation. The House package would raise about a third of that.