LANSING — Gov. Gretchen Whitmer laid out her 2025 legislative priorities Wednesday, saying in an address that the state needs to take action to support its auto industry and make investments in road funding.
Whitmer made her speech at the Detroit Auto Show, and used the venue to highlight the role of car production in Michigan’s economy.
“Michigan is the auto industry and the auto industry is Michigan. Our fates are linked, so let’s pave the road ahead together,” she said.
The newly-divided state government is faced with an end-of-year deadline for a new road funding mechanism, and lawmakers are already considering how to move forward.
Lawmakers have for years walked a tight rope on the issue of road funding, often abandoning the push when confronted with cutting current government services or increasing taxes.
But Whitmer says that inaction on the issue would be costly for the state and for drivers.
“If we don’t find a solution, our roads will get worse and more dangerous, and that means expensive car repairs and delays on your drive home,” she said.
Whitmer has passed the ball onto lawmakers, tasking them with negotiating on the specifics of a plan.
Any proposals would have to go before Republican House Speaker Matt Hall, who has said it remains a priority for the GOP
“He said his caucus wants to keep working on this, and so do I,” Whitmer said. “So to all my partners in the Legislature, let’s get back to the negotiating table and hammer out a bipartisan deal to get this done in 2025.”
Whitmer offered few details on how road work would be funded, but says that “fiscally responsible cuts” in the state budget would have to be a part of any solution.
Republican lawmakers put forward a $2.7 billion plan late last year that would reform the gas tax, school funding and corporate income tax, in theory keeping revenue neutral without the need for tax increases.
“One thing we thought about is kind of suspending the corporate handouts, or money that was for corporations, and actually take that and fund the roads for the next couple years,” said Rep. John Roth, (R) 104th District.
There appears to be some bipartisan interest in reforming the state’s corporate incentive programs, which allocate hundreds of millions a year to companies setting up shop in Michigan.
“We’re in the high 40s in terms of competitiveness economically in Michigan, and I think we need to try and work on things that develop our economy, not hunting for groups to come into Michigan,” said Rep. Parker Fairbairn, (R) 107th District.
Road funding will likely remain a hot topic through the annual budgeting process, which funds state agencies and programs.
Hall said last week that he could see an agreement being reached over the summer.