(Check out a Michigan Municipal League sample resolution that communities can send to lawmakers regarding road funding.)
Last week Governor Snyder presented his 2014 budget recommendations. Within his budget he is calling for an increase of $1.2 billion annually in new funding for transportation. He has proposed raising the majority of these funds by increasing the gas tax and raising registration fees. The details from Snyder’s budget plan are as follows…
The gasoline tax would be increased from 19 cents to 33 cents. The four cents a gallon disparity between the gasoline tax and diesel tax would be eliminated and diesel fuel would be taxed at 33 cents. This tax would be placed on the wholesale price and would allow for some inflation adjustments starting in 2016. This is expected to bring in $727.7 million in new revenue in 2014.
Registration fees would increase 60% for car registrations and 25 percent for truck and trailer registrations, bringing in an additional $508.3 million.
Governor Snyder is also proposing a local option that would allow counties to raise up to an additional $280 million for local road and transit needs through a .18 percent tax on a vehicle’s list price. The money would be colected by the Secretary of State and filtered back to the counties.
His package also provides investment in other modes of transportation, including and additional $113.9 million for the Comprehensive Transportation Fund. Snyder is also calling for $211.7 million for transit operating assistance programs, $89.9 million for transit and $63.6 million for rail and passenger freight programs.
The Governor is not recommending the use of any General Fund money.