Category Archives: government-reform

Proposal 1 Offers Michigan’s Last, Best Chance to Fix Roads with Guaranteed Funding

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John LaMacchia discusses Proposal 1 at a recent Burton City Council town hall meeting.

John LaMacchia discusses Proposal 1 at a recent Burton City Council town hall meeting.

The fate of Proposal 1 will be decided by voters next week (Tuesday, May 5), and there is one thing guaranteed about the outcome: If it passes it will provide a solution to fix Michigan’s crumbling infrastructure and will guarantee funding for transportation, local government, schools. And if it fails? No one can guarantee a solution out of the state Legislature.

That’s the simple message from the Michigan Municipal League’s John LaMacchia, legislative associate, in his many speaking engagements, media interviews and community meetings about Proposal 1 in recent days, weeks and months. LaMacchia has been the League’s voice on Proposal 1 after the League board unanimously endorsed the road funding package in January.

“The one thing that those for and against Proposal 1 agree on is the longer we take to come up with a transportation funding plan, the worse are roads are going to get,” LaMacchia said.

If Proposal 1 passes, it would guarantee, for the first time, that every penny we pay in state fuel taxes goes to transportation.

Bad-bridge-small-for-webLansing would no longer be able to divert taxes paid on gas to some other state program or service.

Here is some additional information about what Proposal 1 would do:

Ballot Proposal:

  • Raises the sales tax from 6% to 7%
  • Exempts sales tax from motor fuel
  • Removes higher education funding from the School Aid Fund
  • Dedicates a portion of the use tax to K-12 education

Statutory Changes Effective Only if Proposal 1 Passes:

  • Increases the tax charged on motor fuel
  • Eliminates the depreciation on vehicle registration fees
  • Increase registration fees on the heaviest trucks
  • Requires more competitive bidding and road warranties
  • Restores the Earned Income Tax Credit to 20% of the federal level

Revenue Generated:

We would fix more roads instead of just fill potholes if Proposal 1 passes May 5.

We would fix more roads instead of just fill potholes if Proposal 1 passes May 5.

Fixing our roads will make them safer by repairing dangerous potholes and improving roadway design. Today, many drivers swerve to avoid dangerous potholes or lose control of their vehicles as a result of flat tires.

According to TRIP, a national transportation research organization, roadway design is a contributing factor in about one-third of fatal traffic crashes. Between 2008 and 2012, 4,620 people died in Michigan car accidents – an average of 924 fatalities per year.

For more information about Proposal 1 go to the League’s Safe Roads Yes! webpage.

To learn more about the Safe Road Yes! campaign go here. View here a series of question and answer videos about Proposal 1. Check out what MML members have to say about Proposal 1. See how much your community will get in additional road dollars and constitutional revenue sharing if Proposal 1 is approved. View which Michigan communities have passed resolutions in support of Proposal 1.

Matt Bach is director of media relations for the Michigan Municipal League. He can be reached at mbach@mml.org. The League’s John LaMacchia can be reached at jlamacchia@mml.org.

League Encourages State to Put Surplus Toward Restoring Revenue Sharing Cuts

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LANSING, Michigan – A report saying the state of Michigan has nearly $400 million has the Michigan Municipal League requesting that the state use some of that surplus to restore massive cuts made to local revenue sharing. A consensus report released today (May 15, 2013) by state economists shows that revenues for the current fiscal year are $396.9 million higher than expected for the general fund for the current 2012-13 fiscal year.

The Michigan Municipal League has responded to this announcement by issuing a press release to media throughout Michigan calling for a portion of that surplus to go back to Michigan communities. View the League’s press release here. View an mlive.com article about the budget surplus that includes mention of the League’s request.

Here’s a portion of the press release:
“Over the past dozen years, the Legislature and governor have cut local revenue sharing by more than $6 billion, breaking promise after promise and ignoring statutes that require the appropriations to local communities,” said Daniel Gilmartin, CEO and executive director of the Michigan Municipal League, in the press release. “Instead of appropriating the funds for local services, Lansing used the funds to fill holes in the state budget, to cut taxes, and for other state programs and services. While we recognize the state’s economy was in bad shape, and many state budgets were cut, local revenue sharing paid a far higher price than all the others.”

Gilmartin said the state budget surplus gives the Legislature and governor the opportunity to return some of the cuts they made to local services that keep people safe in their neighborhoods, keep local drinking water clean, maintain local roads and bridges, fund local parks and libraries, and more.

“The state Senate has proposed a 4.8-percent increase in local revenue sharing for the 2014 state budget. Given the anticipated state budget surplus, anything less than that is unacceptable and unconscionable,” Gilmartin said. “I promise that local leaders and their constituents will remember if the Legislature fails to invest part of the surplus to restore some of the massive cuts Lansing has made to revenue sharing and essential local services.”

Gilmartin said that using the surplus to restore cuts to revenue sharing “becomes critical” if the personal property tax (PPT) law passed by the Legislature in December is approved by Michigan voters next year.The PPT law would cut local taxes paid by local businesses to local communities across the state by hundreds of millions of dollars. The law will not take effect unless it is approved by Michigan voters in August 2014. The Legislature has not yet voted to put the question onto the ballot.

Matt Bach is director of communications for the Michigan Municipal League. He can be reached at (810) 874-1073 and mbach@mml.org.