Capital Conference

Session Resources

Evaluation

2008 Capital Conference Session Summary

If Not Now, When?  Funding Transportation in Michigan

The speakers in this session discussed the problems that Michigan faces in addressing transportation funding and some possible solutions.  All acknowledged that Michigan’s roads and bridges are in dire need of repair and that having good transportation infrastructure is critical to attracting businesses and creating jobs.  It was acknowledged that there is a consequence to waiting to address the needs of our transportation infrastructure.  For example, there are increased costs associated with the damage that potholes cause to vehicles, as well as the time spent missing work in order to tend to the repairs. 

Given that the Legislature reluctantly passed taxes last year, many acknowledged it will be a challenge to find adequate funding for our transportation infrastructure.  However, many agreed that some revenue would have to be generated in the form of an increase in the gasoline tax.  The gas tax has not been increased in 10 years and thus the buying power of that initial 19-cent tax has decreased.  A majority of the speakers proposed an increase of nine cents to the gas tax, beginning with three cents in the first year and increasing it three cents each year until the nine cent tax is attained.  An additional proposal is to increase the vehicle registration fee by 50%.  This would generate a significant amount of revenue.  Another option is to allow for the establishment of local-option taxes or fees which would allow local units of government to levy taxes depending on their needs.  Most of the strongest growth states, such as California, Arizona, Texas, and New York, already have local-option sales taxes.

The speakers, as well as members of the audience, agreed that something must be done soon to address our infrastructure needs.  All were encouraged to support their legislators when they vote for increases in revenue to transportation funding.  It would certainly be helpful for the legislators to know that their constituents believe that this is important.