Michigan is on track to fix its damn roads, but the state’s Department of Transportation can’t perform maintenance and repairs on crumbling, pothole-dotted roads for free. Michigan’s government is set to increase its gas tax from $0.31 per gallon to $0.52 per gallon in January in order to cover the costs. The 21-cent increase will partially fund a nearly $2 billion investment into state and local roads annually over the next four years.
The gas tax will replace a 6% sales tax on gasoline, so the increase won’t financially impact drivers in Michigan when they fill up their tanks. The sales tax revenue went directly to the state’s general fund, while 100% of the gas tax will go to infrastructure spending. The tax swap is expected to raise $1 billion per year. Taxes on the marijuana industry and corporate income will generate the remaining funding. The infrastructure investment isn’t just funding roads. The state is allocating $100 million to public transportation and $40 million to rail grade separation projects.
It took six years for getting more funding for local roads
Governor Whitmer campaigned on a pledge to “fix the damn roads,” and persevered through a lengthy legislative fight to fully fund her plans. According to the Detroit Free Press, Whitmer initially proposed a 45-cent increase in the gas tax in 2019. The rejected plan would’ve resulted in a $0.15 per-gallon hike over three consecutive years. Instead, the state’s transportation commission approved $3.5 billion in bonds for state roads and highways. Now, local roads will receive much-needed dollars. Governor Gretchen Whitmer said in a release:
“I ran on fixing the damn roads, and I’m proud to keep my promise and get it done. This year’s balanced, bipartisan budget makes a record, nearly $2 billion annual investment to fix our state and local roads, which will make everyone’s drive safer and faster. We’re getting this done by ensuring every penny you pay at the pump goes towards our roads.”
By the year’s end, Michigan will have repaired over 24,500 lane miles of road and 1,900 bridges since Governor Whitmer took office six years ago. It’s a cliché that politicians will make empty promises to get elected, so it’s refreshing to see someone willing to hold themselves to account and tough it out for years to see a pledge through.
