LANSING — Gov. Gretchen Whitmer debuted a proposal for road funding this week, calling for $3 billion in annual infrastructure investments. But critics say the plan is light on specifics, and could face an uphill battle in the Republican-controlled House.
“There’s a tremendous amount of waste inefficiencies in our government already,” said Rep. Dave Prestin, (R) 108th District, Cedar River. “And I think if we really, you know, drill down and get to the core of what’s going on with with Michigan roads, the money is there.”
Whitmer says her proposal would modernize Michigan’s road funding systems, better distributing the costs among drivers.
Whitmer says in the announcement that Michigan’s policies don’t account for the wear and tear placed on state infrastructure by companies like Amazon, and she estimates that about $1.7 billion could raised from those entities.
Michigan’s corporate income tax currently sits at 6%, and it’s unclear if Whitmer’s plan would involve raising that rate.
“There’s no solution here where anyone wants this to be funded on the backs of everyday Michiganders,” said Rep. Ranjeev Puri, (D) 24th District, Canton. “I think there’s absolutely a conversation to be had for corporations, especially large corporations, to be paying their fair share.”
The plan also says that every dollar spent at the gas pump would go toward road funding, replacing the currently applied 6% sales tax that mostly goes to school funding.
Whitmer estimates this change would generate about $1.2 billion, but more funding shifts would likely be required to keep school funding stable.
“If you’re spending billions of dollars on the road, there’s a lot of changes that that result because of that,” Puri said. “And so what I think the brilliant thing of her budget is, is that it opens up a few different lines of dialogue of how we can hold these levers to meet the needs to get to that magic $3-4 billion amount.”
Whitmer also proposes a 32% wholesale tax on marijuana products, a charge already applied to cigarettes and other tobacco products.
Marijuana products are currently subject to a 10% excise tax and the state’s 6% sales tax, and Whitmer estimates the new charge would bring in about $470 million annually.
There are other components of Whitmer’s proposal that don’t include many specifics for implementation.
Whitmer says her plan includes “fiscally responsible cuts” that would add half a billion to road funding, but did not detail what areas may be considered for decreased funding.
“I guess I’m hopeful that she’s asking for cuts, but when you’re asking for tax increases at the same time as you’re asking for cuts, I don’t really understand it,” Prestin said. “At the end of the day, this is all about government efficiency,”
Whitmer would need GOP support for any funding proposal, and she has said that she remains open to negotiating specifics of the plan.