Tag Archives: Transportation Funding

Comprehensive Transportation Solution Relies on Passage of Ballot Proposal

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After a marathon final day of lame duck the House and the Senate were able to successfully put together the framework for a comprehensive long-term solution for investing in Michigan’s infrastructure. Although we would have liked the legislature to solve this problem independently, they approved a ballot proposal that will be put before the voters in May of 2015. This ballot proposal along with other statutory changes represents real investment in core areas that are critical to Michigan’s long term success. Below are the highlights of the transportation funding package.

Ballot Proposal:
– Raises sales and use tax from 6% to 7%
– Eliminates the sales tax on motor fuel
– Removes Higher Education from the School Aid Fund
– Amends the use tax distribution

Statutory Changes (Effective only if the ballot proposal passes):
– Switch to a percentage based wholesale tax on motor fuel and increase
– Increase the percentage based wholesale tax
– Changes to registration fees for vehicles and heavy trucks
– Transportation related reforms for warranties and competitive bidding on road projects
– Restore the Earned Income Tax Credit (EITC)
– Sales tax on internet sales (Main Street Fairness)

Net Impact of Changes in FY 2017-18
– $1.2 Billion in new revenue for roads
– $107 Million in new revenue for the Comprehensive Transportation fund for transit and rail
– $118 Million in new revenue for constitutional revenue sharing
– $394 Million in new revenue for the School Aid Fund
– $260 million in tax relief

A more detailed analysis will follow as additional information becomes available.

John LaMacchia is a Legislative Associate for the League handling transportation and infrastructure issues. He can be reached at jlamacchia@mml.org or 517-908-0303.

League Needs Your Help on Transportation Issue This Week

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The League supports a comprehensive transportation-funding solution that supports all forms of transportation, not just roads.

The League supports a comprehensive transportation-funding solution that supports all forms of transportation, not just roads.

This week is likely to be very busy in Lansing when it comes to transportation funding and the League will need your help. Many of you have already contacted your lawmakers on this issue in recent days, but we need you to keep the pressure on. Stay tuned to our Inside 208 blog for the most up-to-date information and calls to action.

Here is what we know as of today:

  1. There are two transportation funding plans being considered. One is the Senate-approved plan that the League supports because it provides additional funding for our complete transportation system. The second is the House-approved plan that the League opposes because it would shift dollars away from local governments, schools, transit and the general fund into roads. The House plan relies on projected increases in economic growth to make up for lost revenue, which simply isn’t reliable.
  2. A new transportation funding vote could take place in the Senate this week.
  3. The League will oppose any plan that puts funding to municipalities at risk.

Here is what the League would like you to do this week:

  1. Contact you state senators asking them to reject the House transportation plan and pass the transportation-funding solution approved by the Senate on Nov. 13. GO HERE to our Action Center to get their contact information and send a sample email that we’ve prepared for you. Talking points for your state senators: A. We need to fix the roads and our transportation system without hurting local governments, schools and public transit. B. We stand behind Governor Snyder and his desire to solve this road-funding problem with new revenue. Taking money from others is not the right solution. C. The Legislature should not solve the road funding problem by reducing revenue sharing and relying on “projected economic growth” forecasts to make up for lost revenue. This is a risk we cannot afford.
  2. Contact your state representatives to express your opposition to the House-approved plan. Ask them to oppose any transportation-funding plan that is potentially harmful financially to municipalities, schools and public transit. Feel free to thank those representatives who voted against the House-plan. And for those who voted for the House-plan ask them why they are willing to put at risk funding to schools, municipalities and public transit? Below is a list of how the representatives voted on this short-sighted and irresponsible House plan.
  3. League Board Member Nathan Triplett (right) on Fox 2 Detroit's Let It Rip.

    League Board Member Nathan Triplett (right) on Fox 2 Detroit’s Let It Rip.

    To help craft your responses, check out a recent interview League Board Vice President and East Lansing Mayor Nathan Triplett did on Fox 2 Detroit. On the “Let It Rip” program with Rep. Anthony Forlini, Triplett did an excellent job discussing why the Senate proposal is best, how the House plan would hurt communities, schools and transit, and why additional revenue is needed to support a comprehensive transportation plan. To hear Triplett’s responses to hard-hitting questions, watch segment 1 and segment 2 from the show.

How representatives voted on the House plan (info from this Detroit Free Press article):

House Bill 4539 — removes the 6% sales tax on fuel sales over a six-year phase-in. It passed 56-53

Voting yes: Jase Bolger, R-Marshall; John Bumstead, R-Newaygo; Mike Callton, R-Nashville; Kevin Cotter, R-Mt. Pleasant; Hugh Crawford, R-Novi; Kevin Daley, R-Attica; Cindy Denby; R-Fowlerville; Jeff Farrington, R-Utica; Anthony Forlini, R-Harrison Townshiip; Frank Foster, R-Pellston; Ray Franz, R-Onekama; Ben Glardon, R-Owosso; Ken Goike, R-Ray Township; Joseph Graves, R-Argentine Township; Gail Haines, R-Waterford; Joe Haveman, R-Holland; Kurt Heise, R-Plymouth; Tom Hooker, R-Byron Center; Martin Howrylak, R-Troy; Bradford Jacobsen, R-Oxford; Nancy Jenkins, R-Clayton; Joel Johnson, R-Clare; Tim Kelly, R-Saginaw; Klint Kesto, R-Commerce Township; Eileen Kowall, R-White Lake; Kenneth Kurtz, R-Coldwater;Andrea LaFontaine, R-Richmond; Dan Lauwers, R-Brockway; Tom Leonard, R-Lansing; Matt Lori, R-Constantine; Pete Lund, R-Shelby Township; Lisa Lyons, R-Alto; Peter MacGregor, R-Rockford; Greg MacMaster, R-Kewadin; Ed McBroom, R-Vulcan; Michael McCready, R-Birmingham; Tom McMillin, R-Rochester Hills; Aric Nesbitt, R-Lawton; Margaret O’Brien, R-Portage; Rick Outman, R-Six Lakes; Peter Pettalia, R-Presque Isle; Earl Poleski, R-Jackson; Phil Potvin, R-Cadillac; Amanda Price, R-Holland; Al Pscholka, R-Stevensville; Bruce Rendon, R-Lake City; Bill Rogers, R-Brighton; Wayne Schmidt, R-Traverse City; Mike Shirkey, R-Clark Lake; Pat Somerville, R-New Boston; Jim Stamas, R-Midland; Robert VerHeulen, R-Walker; Roger Victory, R-Hudsonville; John Walsh, R-Livonia; Ken Yonker, R-Caledonia; Dale Zorn, R-Ida.

Voting no: Theresa Abed, D-Grand Ledge; Brian Banks, D-Grosse Pointe Woods; Vicki Barnett, D-Farmington Hills; Winnie Brinks, D-Grand Rapids; Terry Brown, D-Pigeon; Charles Brunner, D-Bay City; Phil Cavanagh, D-Redford Township; Paul Clemente, D-Lincoln Park; Tom Cochran, D-Mason; George Darany, D-Dearborn; Scott Dianda, D-Calumet; Brandon Dillon, D-Grand Rapids; Gretchen Driskell, D-Saline; Fred Durhal, D-Detroit; Pam Faris, D-Clio; Douglas Geiss, D-Taylor; Bob Genetski, R-Saugatuck; Tim Greimel, D-Auburn Hills; Harold Haugh, D-Roseville; Rudy Hobbs, D-Lathrup Village; Marcia Hovey-Wright, D-Muskegon; Jeff Irwin, D-Ann Arbor; Andrew Kandrevas, D-Southgate; John Kivela, D-Marquette; David Knezek, D-Dearborn Heights; Robert Kosowski, D-Westland; Collene Lamonte, D-Montague; Marilyn Lane, D-Fraser; Bill LaVoy, D-Monroe; Ellen Lipton, D-Huntington Woods; Sean McCann, D-Kalamazoo; Paul Muxlow, R-Brown City; David Nathan, D-Detroit; Stacy Oakes, D-Saginaw; Dave Pagel, R-Berrien Springs; Phil Phelps, D-Flint; Sarah Roberts, D-St. Clair Shores; Rose Robinson, D-Detroit; David Rutledge, D-Ypsilanti; Harvey Santana, D-Detroit; Andy Schor, D-Lansing; Kate Segal, D-Battle Creek; Sam Singh, D-East Lansing; Dian Slavens, D-Canton Township; Charles Smiley, D-Burton; Thomas Stallworth, D-Detroit; Woodrow Stanley; D-Flint; Jon Switalski, D-Warren; Alberta Talabi, D-Detroit; Rashida Tlaib, D-Detroit; Jim Townsend, D-Royal Oak; Henry Yanez, D-Sterling Heights; Adam Zemke, D-Ann Arbor.

Not voting: John Olumba, I-Detroit.

For questions on this transportation-funding issue, contact at the League’s John LaMacchia II at (517) 908-0303 or jlamacchia@mml.org.

Matt Bach is director of media relations for the Michigan Municipal League. He can be reached at mbach@mml.org and (734) 669-6317.

League Distributes Letters to the Editor in Support of Transportation Funding Package

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There are many transit options in Michigan and a complete transportation funding program would support all of them.

There are many transit options in Michigan and a complete transportation funding program would support all of them.

The Michigan Municipal League sent to the media this week a series of letters to the editor to encourage the state House to approve the transportation funding package passed in the Senate on Nov. 13. The House is considering a couple different transportation funding options and we want the state Representatives to show the same courage as the Senate and pass the comprehensive funding plan that includes HB 5477. Governor Snyder also supports this plan.

The letters were co-penned by people you might not normally see working together, but they’ve found common ground when it comes to getting additional funding to fix Michigan’s failing infrastructure. The letters maintained that increased funding is needed to all forms of transportation (roads, rails, trails, bridges, harbors, non-motorized facilities, and public transit) in order to help build communities where people want to live, work and play.

For example, we sent a letter jointly authored by East Lansing Mayor and MSU alum Nathan Triplett, vice president of the League board; and Ann Arbor Mayor and UM alum Christopher Taylor. The letter starts out with, “As mayors of East Lansing and Ann Arbor, when it comes to college sports there isn’t a whole lot we agree on. But when it comes to the pressing need for increased investment in our state’s crumbling transportation infrastructure, we are in total agreement: the time for legislative action is now.”

Other letters were written by the presidents of the Michigan Municipal League Board (Wakefield Mayor Pro Tem Dick Bolen) and Michigan Townships Association Board (Arcada Township Supervisor Doug Merchant); and the mayors of two Michigan cities that are more than 640 driving miles apart – Ironwood’s Kim Corcoran, a member of the League board, and Luna Pier’s David Davison.

We are already getting some traction in the media from the letters so stay tuned to mml.org for links and information about that as it happens. Check out the letter by Triplett and Taylor in the Lansing City Pulse and the letter by Corcoran and Davison in the Battle Creek Enquirer, the Macomb Daily Tribune and the Detroit News.

We’re also encouraging our members to contact their state Reps this week to ask them to approve the package passed in the Senate. You can go here to our Action Center to look up your Reps’ contact information and send them a sample email we’ve prepared for you.

Matt Bach is director of media relations for the Michigan Municipal League. He can be reached at 734-669-6317 and mbach@mml.org.

 

Michigan Senate Votes for New Funding for Transportation!

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There are many transit options in Michigan and a complete transportation funding program would support all of them.

There are many transit options in Michigan and a complete transportation funding program would support all of them.

In a huge vote, the Michigan Senate has just passed HB 5477, a bill that would phase in a new percentage-based gasoline tax that will result in an additional $1.2 billion for transportation funding by 2019. Revenue from other bills in this package result in transportation increases as high as $1.5 billion annually once fully phased in.

The bill would replace the current cents per gallon structure, which is 19 cents per gallon on gasoline and 15 cents per gallon on diesel fuel. Under the bill, the percentage tax on gas would start at 9.5 percent as of April 1, 2015. It would increase to 11.5 percent on January 1, 2016; to 13.5 percent on January 1, 2017; and to 15.5 percent on January 1, 2018.

Thank you to all of our members who reached out to their Senator asking them to support this important legislation. The bill will now need to be approved by the House. Our advocacy efforts cannot end here. We encourage you to immediately begin reaching out to your House member and ask them to vote yes on House Bill 5477 as approved by the Senate.

John LaMacchia is a Legislative Associate for the League handling transportation and infrastructure issues. He can be reached at jlamacchia@mml.org or 517-908-0303.

Contact Michigan Senators Today to Urge Their Support of Transportation Funding Increase

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There are many transit options in Michigan and a complete transportation funding program would support all of them.

There are many transit options in Michigan and a complete transportation funding program would support all of them.

Discussions are currently taking place in Lansing on finding a way to raise new revenue for Michigan’s transportation network during the current lame duck legislative session.

House Bill 5477 is a key pieces to this new revenue.

It would switch the current cents per gallon tax on fuel to a percentage based tax on the wholesale price and gradually increase that percentage over the next several years.

The proposed funding solution is a nine-bill package that would provide yearly increases to transportation funding and would reach $1.5 billion in new annual revenue by 2020.

Legislators have an incredible opportunity to solve Michigan’s transportation needs and develop a comprehensive solution for investing in Michigan’s infrastructure.

Michigan can no longer wait for a comprehensive transportation funding plan.

Michigan can no longer wait for a comprehensive transportation funding plan.

This plan would not only invest in roads and bridges, but would provide additional funds for public transit, trails, ports, and rail. Download the Michigan’s Can’t Wait flyer.

The Senate could take this up for a vote as soon as Thursday (Nov. 13, 2014) and we need your help. Please contact your Senator and let them know that you are supportive of increasing transportation revenue and the positive impact it will have on your community. We are on the verge transforming our transportation system and you can help ensure its successful passage.

To make it as easy as possible for you, we’ve drafted a sample email that you can edit and send to your senators.

To access this tool, go to our action center here and click on the item in the blue Action Alert! box.

A comprehensive transportation funding system is one of the four key parts of the Michigan Municipal League’s Partnership for Place initiative released in 2013. Read more about why this is important here.

This blog post was by John LaMacchia II, legislative associate for the Michigan Municipal League. John can be reached at jlamacchia@mml.org and 517-908-0303.

Transportation Funding Hitting Road Blocks in the Senate

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The package of bills sent over by the House has hit a road block in the Senate. Democrats are arguing for protection of prevailing wage, the current electoral college system, and the need to provide tax relief for the working poor by reinstating the cuts made in 2011 to the Earned Income Tax Credit. Republican are not united in their approach as some members of their caucus want to raise the gas tax, other want to raise the sales tax, and still other want no new taxes. As this debate plays out some progress was made this week but much more needs to be done if comprehensive solution is going to be realized.

Talks are ongoing among legislative leaders. The League remains hopeful that the legislature will respond to the public outcry to fix Michigan transportation networks and act on the bills before them. We encourage you to reach out to the Senator and Representative from your area and encourage them to vote for a sustainable solution that will return Michigan to a state with strong infrastructure, reliable transit options, and thriving communities.

John LaMacchia is a Legislative Associate for the League handling transportation and infrastructure issues. He can be reached at jlamacchia@mml.org or 517-908-0303

Senate Hopes to Vote on Significant Transportation Funding Increase Next Week

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The Senate has adopted a substitute to HB 5477 that would gradually increase the new percentage tax on gasoline over four years from 9.5 percent beginning January 1, 2015, to 11.5% beginning January 1, 2016, and to 13.5 percent beginning January 1, 2017. For the year beginning January 1, 2018, the rate would be increased to 15.5 percent.

The changes to the bill, which repeals current fuel taxes, 19 cents per gallon and 15 cents per gallon on diesel, and replaces them with a percentage tax on the wholesale price, was the most significant change the chamber made to several House and Senate bills whose goal is to increase revenue to improve our transportation system. The House had originally proposed in HB 5477 a rate of 6 percent, a level said to be revenue-neutral.

The Senate is looking to hopefully pass these bills Tuesday or Wednesday of next week.

Earlier in the day, the Senate Infrastructure Modernization Committee had reported the bills with only one change to HB 4630, which would remove a provision of current law that offers a 10 percent reduction in registration fees for purchasers of new vehicles over three years. It is estimated that change could yield about $140 million.

Overall the package of bills represent nearly $2 billion in new revenue for our transportation system.

John LaMacchia is a Legislative Associate for the League handling transportation and infrastructure issues. He can be reached at jlamacchia@mml.org or 517-908-0303

House Sends Transportation Funding Bills to the Senate.

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The House today voted out ten bills that represent another step forward in providing additional funding for our transportation system. These bills would eliminate the gas tax paid at the pump and instead charge a 6% tax on the wholesale price. They would ensure taxes paid on diesel are equal to those paid on gasoline. The Secretary of State would be required to streamline registration fees, and overweight truck permits and fines are increased. These bills also includes efficiency measures to increase competitive bidding done by the Department of Transportation, and would require warranties on construction and preservation projects over $1 million dollars.

The League has been successful in having amendments added to these bills to protect our locals ability to fix their crumbling infrastructure. We will continue to advocate for further changes to improve on the package passed by the House.

There has been very positive news coming out of the Senate that they want to find a comprehensive solution to fix our transportation network. The League recognizes that the funding solution passed by the House is not a comprehensive solution, but it does represent the most progress made on this issue in many years. We have begun discussion with key members of the Senate to ensure that any solution represents a full solution for the transportation needs of this state. Based on early indications, we are hopefully that the Senate will take the necessary steps to finding this solution.

John LaMacchia is a Legislative Associate for the League handling transportation and infrastructure issues. He can be reached at jlamacchia@mml.org or 517-908-0303.

Tax policy Committee Takes Testimony on Sales and Use Tax Bills to Fund Roads

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Over the past two days the Tax Policy Committee has taken testimony on bills that would dedicate a portion of the general fund revenue from the sales tax collected at the pump and 1% of the use tax and dedicate that money to roads.

HB 5459 states that after all allocations and distributions are made, this includes the money that is sent to local communities through constitutional revenue sharing, the remaining balance will be used to fund our roads in accordance with percentages described in the transportation funding formula (Act 51). These percentages equal 39.1% to MDOT, 39.1% to County Road Commissions, and 21.8 to Cities and Villages. What this bill does not do is add additional dollars to the Comprehensive Transportation Fund and therefore public transit agencies across this state receive no increase in funding.

HB 5492 states the revenue generated from the use tax must first be reimbursed to the school aid fund and to communities for reimbursement for lost personal property tax revenue. Upon completion of those disbursements 1% shall be deposited into the Michigan Transportation Fund used to fund our roads in accordance with percentages described in the transportation funding formula (Act 51). This bill also does not do add additional dollars to the Comprehensive Transportation Fund resulting in no increase in funding for public transit.

Collectively these two bills will generate and additional $369 million for roads.

The League testified that while these bills preserve current funding and obligations to local communities, we have concerns about the continued dedication of General Fund dollars and the impact that this could have on our cities and villages in the future. The lack of investment in public transit is also an issue that needs to be addressed in these bills. We know that the economic and social benefits of having a great public transit system in Michigan is a key component to building vibrant communities.

These bills fall short of the sustainable long-term funding solution that is needed in Michigan. We will continue to work with members of the legislature to improve these bills and fix Michigan’s transportation needs.

John LaMacchia is a Legislative Associate for the League handling transportation and infrastructure issues. He can be reached at jlamacchia@mml.org or 517-908-0303.

House Transportation Committee Begins Taking Testimony on Speaker’s Road Funding Plan

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The House Transportation Committee began taking testimony on Speaker Bolger’s plan to raise $450 Million dollars for roads. Offering testimony today was MDOT, Michigan Building and Construction Trades Council, and the County Road Association of Michigan.

The plan focused on four specific subject areas: increasing efficiencies, improving quality, improving fairness and investing current resources. That’s different from other plans that have focused on tax increases to improve the state’s roads.

 

The proposal includes ending the 19 cents per gallon tax on gasoline and 15 cents per gallon tax on diesel fuel and replacing them with a 6 percent tax on the price of fuel at the wholesale level. This would be a revenue neutral change for gasoline and raise $47 million in new revenue from those buying diesel fuel.

 

The proposal also includes efficiency measures such as more competitive bidding for local road agencies and the Department of Transportation, and would require that warranties on construction and preservation projects.

The plan would also increase fees on permits for overweight and oversize trucks, a move that would raise $4.5 million

Finally, the plan would use General Fund dollars generated from the use tax and the sales tax collected on gas and diesel at the pump, and dedicate those dollars to roads. This would generate $379 million.

The committee will continue to take testimony on Thursday (5/1). The League will be offering testimony thanking the Speaker for beginning the discussion on increasing road funding but that further work needs to be done on the proposed legislation to ensure a long-tern solution.

John LaMacchia is a Legislative Associate for the League handling transportation and infrastructure issues. He can be reached at jlamacchia@mml.org or 517-908-0303.