Some of the top stakeholders in the Proposal 1 debate gathered for a panel discussion on the issues surrounding the proposal and why it’s critical to support it. Roger Martin, partner at public relations firm Martin Waymire, which is organizing the Safe Roads Yes! campaign, moderated the discussion. Panelists included Mike Flanagan, State Superintendent; Rob Fowler, president and CEO of the Small Business Association of Michigan; George Heartwell, mayor of Grand Rapids; and Kirk Steudle, director of the Michigan Department of Transportation.
Martin led off the discussion by updating the audience on some of Proposal 1’s major supporters, such as the Detroit News, Detroit Free Press, Traverse City Record, former U.S. Senator Carl Levin, the Small Business Association of Michigan, as well as a number of teacher and public safety organizations. He also reminded attendees that voters are depending on their local officials to educate them about the proposal. Whether it passes depends on how much passion there is to get their people out to vote.
Stuedle emphasized that our roads are declining rapidly and we have to address the situation now. The longer we wait, the more it costs. The gas tax hasn’t been increased since 1997, and even then it was only increased by four cents per gallon when it really needed to be 11 or 12 cents. That flat cents per gallon tax has been losing buying power over time. Proposal 1 remedies that situation with a percentage gas tax that will maintain its buying power. The $1.2 billion it will raise is constitutionally guaranteed for roads and can’t be used for any other purpose. Also, Proposal 1 helps pay off the bonds that have financed prior road improvements.
Heartwell indicated that the condition of the roads in our state is not just a safety issue, but it’s an economic development and talent attraction problem. What businesses or talent are going to want to locate here if we don’t present ourselves as attractive 21st century communities?
Fowler agreed with Heartwell’s emphasis on economic development, describing our transportation system as the heartbeat of our state, the central nervous system of our economy.
Flanagan stressed that there are many reasons to support Proposal 1, not the least of which is the $300 million it would provide for local schools.
As for a Plan B if Proposal 1 doesn’t pass, Waymire said other options are far less attractive. The legislature has proposed such things as borrowing from Michigan’s catastrophic injury fund, or taking money from revenue sharing or schools.
Q. Everybody is cynical and doesn’t trust government. What guarantees do we have?
Steudel indicated that he has to certify that the gas tax funds are used for roads. The sales tax has to be used for schools and local government, so the state can’t dip into that either.
Heartwell said the fact that it’s a constitutional tax increase is a huge protection.
Fowler emphasized that you can’t put in constitutional protections if you don’t go to the ballot. Taking it to the people is part of the elegance of Proposal 1. Future legislators will not be able to use the tax increase for other purposes.
Q. What is the top reason to vote for Proposal 1?
Flanagan said that the roads are the number one reason, and economic development is second. There isn’t another way to do this, and it’s frightening if it doesn’t pass.
Fowler stressed that we’ve been at this conversation for a long time and he doesn’t see how any of the other options would work. This is the best it’s going to get.
Heartwell agreed, saying it’s about safety, but it’s also about prosperity for our state. It took us 6 years to get to this point, and we can’t wait another 6 years.
Steudle added that we have an old tax mess and it will take our vote to fix it. Proposal 1 fixes the policy so that what you pay at the pump goes for transportation, and the sales tax increase goes to schools and local governments. At the end of the day, this is our infrastructure. Is this what we want?
Q. What’s the number one thing city officials need to do between now and May 5?
Heartwell believes the need is obvious and people will rise to the occasion. But local officials need to get in front of their people every opportunity they can. It’s their responsibility to get the word out.
Flanagan agreed, stressing that many people aren’t understanding the problem. Doing local town halls or sitting down with residents at McDonald’s could make all the difference.
Fowler added that it’s extremely important to get out the voters who are already in favor of Proposal 1.
Q. There’s some nervousness among League members that MDOT might get all the money. Will some go to local governments?
Steudle indicated that the formula will be the same as it has been since the 1950s. Proposal 1 would raise $1.3 billion. Of that, $1.2 billion would be divided as follows: MDOT would get 39%, counties would get 39%, and cities would get 22%. The rest would go to public transit.
Q. The opposition says don’t raise taxes. What would you say in response?
Waymire offered a succinct response: Is it worth 4 cents a gallon and a penny more in sales tax to have safe roads?