Lieutenant Governor Brian Calley

Bump, bump, bump – kabam! We’ve all driven over the potholes in Michigan roads, and under the crumbling bridges threatening to drop chunks of concrete on our cars. Fixing these roads and bridges is such an important issue that it’s the center point of the League’s 2015 Capital Conference.

League president Dick Bolen opened the welcome session with a review of Proposal 1, the road funding initiative going to voters May 5. He briefly outlined how the proposal benefits Michigan communities and strongly encouraged League members to back the proposal, as it is our last, best chance to fix Michigan roads. The League Board saw the proposal’s potential and voted to support it in January.

Lieutenant Governor Brian Calley followed with a more detailed analysis of how Michigan roads ended up in such deplorable condition and why Proposal 1 is the best option for a long-term solution. Years of neglect have created the public safety crisis we now face. Almost 40 percent of lane miles on federal aid roads are in poor condition; car crashes cause $8.1 billion in damage; Michiganders spend an extra $2.5 billion in vehicle operation costs; and road conditions are a significant factor in approximately 1/3 of traffic fatalities.

Michigan’s brutal winters are a major causal factor, but funding is also a critical issue. Calley indicated that our roads have long been inadequately funded, and when roads aren’t property maintained they don’t last as long. And perhaps most importantly, Michigan has the dubious distinction of being dead last in highway investment per capita.

We could do nothing and risk increasingly dangerous conditions, massive road reconstruction costs, and higher loss of life. But Calley stressed the unfairness of leaving this matter unresolved for the next generation. A much better option is to support Proposal 1, which would increase the sales tax to 7% and in turn add $1.3 billion more for transportation, as well as $300 million for schools and $94 million for local governments. This constitutional change is the only way to fix our tax structure in order to fix Michigan’s crumbling roads, invest in local schools, generate jobs in tourism and manufacturing, and save lives. Plus, we would be able to reconstruct and rehabilitate twice as many miles of roadway and decrease debt service by about half.

“This is a serious public policy issue in every city in our state. It can’t wait anymore,” said Calley. “We’ve been through every option we could think of, and this is what got the votes. This is the proposal that gets the job done. This is our shot.”

Calley concluded by encouraging all municipal officials to address the Proposal 1 issue in their communities and help their residents understand why it’s so important, and how it could make the difference between the dangerous roads we have and the roads our people deserve.

For more information on Proposal 1, visit the Safe Roads Yes section of the League’s website.

League Legislative Team Breaks it Down

Following the Lieutenant Governor’s presentation, the League’s legislative team reviewed a number of issues important to our members that are currently before state and federal lawmakers.

John LaMacchia, legislative associate for state affairs, amplified Calley’s comments on Proposal 1. He stressed that the constitutional nature of the sales tax increase makes it a strong guarantee for the additional funding for roads, schools, and local governments. He also cited the proposal’s inclusion of more funds for public transit, which benefits people of all ages. LaMacchia cautioned that if Proposal 1 doesn’t pass, any Plan B could involve elimination of revenue sharing.

Nikole Brown, also a legislative associate for state affairs, brought the audience up to date on HB 4183, a bill regarding online notices currently working its way through the House. This bill proposes phasing out print notices for a variety of municipal issues and phasing in online notices in a 3-tiered system. The goal is to reduce costs to communities and reach residents through more preferred means. This session, the bill passed out of House committee and the League is focused on getting it passed on the House floor.

Chris Hackbarth, director of state affairs, briefly reviewed the state budget. Full committee passage of the FY15 state budget is expected next week, and the legislature hopes to finish the budget in early June. As for the FY16 state budget, the governor is recommending maintaining statutory revenue sharing at the FY15 level of $242 million, with constitutional revenue sharing expected to grow to $788.5 million. 

Summer Minnick, director of external relations and federal affairs, outlined the League’s federal legislative priorities:

•  Municipal bond tax exemptions – President Obama has proposed a cap on municipal bonds. The League rejects any attempt to eliminate or limit their traditional tax-exempt status.
• E-fairness – The League supports efforts to have online retailers collect sales tax to eliminate the unfair advantage they have over “brick and mortar” retailers in our communities.
• Transportation funding – The League encourages Congress to increase revenues to pay for the federal transportation crisis, fix the Highway Trust Fund, and develop a long-term transportation bill of at least six years.

A more detailed handout on these federal issues is available for download on the Presentations page.