Senate Leader Calls For Vote On 'Last, Best' Roads Deal

By DAVID EGGERT
Associated Press

LANSING, Mich. (AP) - The leader of the Michigan Senate called Tuesday for votes on a "last, best" $1.2 billion road-funding plan he said legislative leaders had agreed to before talks stalled last week, saying his Republican counterpart in the House should send the legislation to a conference committee.

"Put the last, best deal that we had on the table, put that up for a vote and go get the votes," GOP Senate Majority Leader Arlan Meekhof told reporters.

For the first time, he detailed specifics of the "base" agreement that he said was largely in place before Republican Gov. Rick Snyder and House Speaker Kevin Cotter declared an impasse - $400 million more in fuel taxes, $400 million more in vehicle registration fees and a shift of $400 million from other spending. The deal also would include annual income tax cuts when income tax revenues rise by more than inflation, which House Democratic Leader Tim Greimel opposes due to concerns about potential budget cuts and disproportionately aiding the wealthy.

Michigan's 19-cents-a-gallon gasoline tax would be increased by 6.3 cents on Jan. 1. The 15-cent diesel tax would rise by 10 cents. Both would rise with inflation in future years.

License plate fees would no longer decline gradually in the three years after a new car is bought to reflect the vehicle's depreciating value.

"This is a very, very good deal," Meekhof said.

But Cotter spokesman Gideon D'Assandro said Meekhof "abruptly" left last week's meeting of Snyder and legislative leaders because Greimel "changed his mind on an income tax cut, so he should know there is no deal. Speaker Cotter has been working with the governor on the issue since then, and he remains hopeful we can find reliable support for a permanent road-funding solution."

Snyder said last week that he would schedule no further talks among all the leaders "unless I see progress."

In May, voters soundly defeated a sales tax increase - backed by the Republican governor and proposed by the previous GOP-led Legislature - that would have triggered more money for deteriorating roads, education and municipalities.

House Republicans passed a proposal the next month that would largely cut or shift spending while boosting the diesel tax to equal the gasoline tax and gradually increasing both with inflation. In July, Senate Republicans voted to increase the gas tax and diesel tax to 34 cents and dedicate existing tax revenue to roads while also triggering cuts in the 4.25 personal income tax rate when revenues grow above inflation.

The road-funding bills now are pending in the House, which is why it would need to act to move them to a House-Senate conference committee and set the stage for votes from the full Legislature. Meekhof said new drafts have been drafted that reflect the "deal."

Greimel has said he will not agree to a plan that jeopardizes funding for public safety, education or health care, and he is concerned that the wealthy would see a net tax cut while others would be hit with a net tax increase. Democrats have favored targeted tax breaks such as expanding tax credits for homeowners.

Senate Democratic Leader Jim Ananich said "when the House gets their house in order, hopefully we can get a roads bill passed."

Two groups, Business Leaders for Michigan and the Michigan Municipal League, joined Meekhof's call for a conference committee vote. They said diverting $400 million from the general fund for roads is acceptable, but using more would be unsustainable and put other budget priorities at risk.

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