Michigan is on its way to fixing its damn roadsbut the state’s Department of Transportation cannot provide free maintenance and repairs to crumbling, pothole-ridden roads. The Michigan government will increase its gas tax in January from $0.31 per gallon to $0.52 per gallon to cover costs. The 21 cent increase will be partially funded an investment of nearly $2 billion in state and local roads annually for the next four years.
The gas tax will replace a 6% sales tax on gasoline, so the increase will not have a financial impact on Michigan motorists when they fill up their tanks. Sales tax revenue went directly to the state’s general fund, while 100% of the gas tax goes to infrastructure spending. The tax swap is expected to generate $1 billion per year. Taxes on the marijuana industry and corporate income will generate the remaining funding. The infrastructure investments don’t just finance roads. The state is allocating $100 million to public transit and $40 million to rail separation projects.
It took six years before more money became available for local roads
“I’ve continued to fix those damn roads, and I’m proud that I kept my promise and did it. This year’s balanced, bipartisan budget delivers a record: an annual investment of nearly $2 billion in fixing our state and local roads, making everyone’s ride safer and faster. We’ll get this done by making sure every penny you pay at the pump goes to our roads.”
By the end of the year, Michigan will have repaired more than 15,000 miles of roads 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 accountable and take years to deliver on a promise.
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