LANSING — A long-sought road funding plan is at the center of budget negotiations in the Michigan government — but some say the proposal could fall short of the needs of rural communities.
The Antrim County Road Commission says the plan is millions of dollars less than they would’ve received under an earlier proposal, reflecting concerns about whether the plan can meet the moment for Michigan roads.
The plan, which lawmakers said they agreed to last week, would immediately generate $1.5 billion a year, increasing to $1.8 billion over the next few years.
The plan would bring in that money through a new marijuana wholesale tax, maintaining the state’s corporate income tax rate and shifting revenue so that all taxes paid on gas go toward road work.
“It won’t really change the price of gas much at all,” said Bob Schneider, an analyst with Citizens Research Council. “What it’ll do is take a billion dollars that goes to other places, and it moves it over to road infrastructure purposes.”
Burt Thompson, engineer-manager of the Antrim County Road Commission, says that in his view, the new plans do not adequately support his county or other Northern Michigan communities.
“The more I looked at them and started running numbers, the more upset I got over that plan that came out,” he said.
Thompson says that the industry has been hit hard by inflation in recent years, nearly wiping out spending increases that were approved in 2015.
Antrim County roads currently need over $50 million in work, and the road commission receives around $7 million from the state each year.
Under a $3 billion plan passed by House Republicans earlier this year, the county would’ve received millions more.
“An $800,000 increase doesn’t go very far when we need to purchase equipment and maintain the roads,” he said.
Ed Noyola, legislative director of the Michigan County Road Association, stressed that the agreement isn’t yet finalized and that specifics could continue to change in the process.
Specifically, the amount distributed between the state, county and city authorities could change.
Noyola says that he’s optimistic the agreement could set a long-term framework for road funding in Michigan.
“I think this has got some meaningful value, and it will provide enough money for all of us — all the road agencies — to be productive during the construction season and still be able to do their winter maintenance,” he said. “Are we thinking that this is a long term solution? It is.”
But Thompson says that he doesn’t expect this to be the end of the conversation around infrastructure funding.
“Michigan has underfunded roads for many, many decades, and it’s always been a fight,” he said. “I’ve been here 31 years, and that’s all we’ve talked about, is road funding and the need for increased road funding”