Millions of dollars from a petroleum tax have been diverted to plug holes in the state budget and pay interest on debt, Michigan’s auditor general said Friday.
High-level talks over fixing Michigan’s deteriorating roads are at a standstill in the Capitol, with Republican and Democratic leaders still unable to agree much on how to even start.
Gov. Snyder is having a tough time persuading the GOP-led Legislature to swallow an increase in the state gasoline tax from 19 cents to 33 cents a gallon and a hike in car license plate fees by 60 percent.
A multi-pronged plan to raise more money for road and bridge repairs by asking Michigan voters to increase the retail sales tax doesn’t appear headed for a vote — at least for now.
The only issue with this new proposal is the money was to go towards public school funding so now Gov. Snyder needs to come up with a way around cutting into that money.
The leader of the state Senate has tabled a proposal to raise vehicle registration fees as a way to raise money to fix the roads.
Gov. Rick Snyder has proposed a $50.9 billion budget that he says is responsible and focused on the future.
Under a six-measure package introduced by Republicans on Wednesday, the gasoline tax would nearly double and registration fees for cars and pickup trucks would rise 80 percent.
Critics of Gov. Snyder’s call for more money to fix Michigan’s ailing roads and bridges are pointing to the state’s highway weight limit as the problem.
Lawmakers in Lansing are tossing around the idea of eliminating the gas tax in Michigan in favor of raising the state’s sales tax.
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