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Michigan Senate OKs 15-Cent Gas Tax Hike For Roads [Podcast]

LANSING (WWJ/AP) -  The Republican-led Michigan Senate narrowly passed a 15-cents-a-gallon gas tax hike on Wednesday with Lt. Gov. Brian Calley serving as a tie-breaker.

The vote was 19-19 —with 18 Republicans and on Democrat casting a "yes" vote — before Calley was called on to weigh in.

The $1.4 billion road-funding plan would raise the state gasoline tax by 15 cents a gallon over three years and also trim the income tax if Michigan's general revenues rise above inflation in any given year.

Gas Tax Hike

The proposal also would redirect $700 million in general funds toward road and bridge infrastructure, though specific spending cuts would be left until later. Another bill would eliminate a tax credit for lower-wage earners.

Sen. Minority Leader Jim Ananich (D-Flint) was among those who voted no.

"We had before us a plan that relies on an increase in the gas tax which is rapidly becoming obsolete," Ananich said. "Instead, we have before us a plan that demands $700 million in cuts to the state budget with no details as to where those cuts will be made."

Michigan voters in May resoundingly defeated a proposed sales tax hike that would have triggered more funding for roads, schools and municipalities.

The state last boosted the gas tax by four-cents in 1997.

TM and © Copyright 2015 CBS Radio Inc. and its relevant subsidiaries. CBS RADIO and EYE Logo TM and Copyright 2015 CBS Broadcasting Inc. Used under license. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed. The Associated Press contributed to this report.

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