Michigan Back to Square One to Fix Roads
May 6th, 2015 | By: Maria Matthews

Tags: gas tax, infrastructure, Michigan
No Comments »
Raising Revenue for Infrastructure: Who will be next?
April 14th, 2015 | By: Maria Matthews
Whether it’s been increased, decreased, or frozen the 2015 legislative session has seen a high level of activity from states attempting to modify their gas tax to keep up with their infrastructure needs. We’re keeping a close eye on the nearly 40 states that are still in session and hopeful they will vote “yes” for infrastructure time and again. Among the states to watch closely are Michigan, Missouri, Nebraska, New Jersey, South Carolina and Washington. All have hinted they might take action this year. Here’s what to expect and watch for:- Michigan has put its funding decision in the hands of voters. They’re being asked to go to the polls on May 5th to raise the sales tax by 1% and increase vehicle registration fees. The legislature doesn’t adjourn until December so in the event the ballot measure fails, the state lawmakers will likely head back to the drawing board.
- Nebraska’s legislature is two rounds of voting away from a phased in 6-cent per gallon increase. The bill may meet opposition from the Governor, if it clears the legislature. Its next hurdle would then be a veto override.
- New Jersey is in the unusual position of having to raise revenues to preserve its Transportation Trust Fund The fund is expected to run dry sometime this summer and will indeed impact the way The Garden State maintains its highways and bridges.
- South Carolina has a number of proposals on the table. More importantly than the number of options being considered is the fact that the Legislature and the Governor will need to find common ground when it comes to raising additional revenue for roads. In her State of the State Address, Governor Nikki Haley indicated she would support no more than a 10-cent per gallon tax increase and only if there were offsets in other areas to keep the state competitive with its neighbors.
- Washington state’s legislature has proposed an 11-cent per gallon increase as part of a larger transportation funding package that would also increase a number of driver fees. With a projected adjournment date just around the corner, April 26, hopefully they will finish their work with decisive action for transportation investment.
Tags: Michigan, Nebraska, New Jersey, South Carolina, state, state government, Washington
No Comments »
Michigan Must Say Yes to Safer Roads
April 8th, 2015 | By: Becky Moylan
In Michigan, a common saying is “there are two seasons: winter and road construction.” Rough winters and underinvestment for the past 50 years have led the Great Lakes state to have some of the worst roads in the nation. And while construction season may seem constant during the warmer months, the truth is currently the state cannot keep up with meeting the needs to maintain or improve roads and bridges. The continual underinvestment has led to a backlog of needs and safety issues. Gov. Rick Snyder has been advocating for the past few years that something needs to be done to change the state’s trajectory. Last December, in an eleventh hour deal, the state legislature decided to punt the decision to the voters. In just under a month, the option to increase funding for roads will be considered at the polls. If passed, Proposal 1 would raise $1.2 billion a year to be invested exclusively into transportation. As I drove around my hometown last week, this seemed like a no-brainer. I’ve included a couple photos, but it does not fully do the problem justice. Many roads are in such bad shape that debris lines the shoulders of the street, rubble that is a byproduct of the potholes and gaping cracks in the pavement. The same month state lawmakers devised Prop 1, TRIP released a study revealing poor roads were costing the average Michigan driver $539 a year —and remember it’s the Motor City, people love their cars and many work for the auto industry. In some areas the extra vehicle operation costs that include accelerated vehicle depreciation, additional repairs, increased fuel consumption and tire wear costs drivers as much as $851 a year. Here is how Proposal 1 works:- Raise the state sales tax rate by one penny, from 6 percent to 7 percent
- Implement a series of laws that exempt fuel from the sales tax, then impose a higher fuel tax whose revenue would be used exclusively for transportation
- Raise vehicle registration fees to increase transportation funding
- Raises $1.2 billion each year to increase investment in transportation—bringing Michigan more in line with the transportation investment of neighboring states
- Ensure every penny raised at the gas pump goes to improving Michigan’s roads, bridges and public transit
- Protect taxpayers by getting road builders to give warranties on the roads they build
Tags: bridges, Michigan, roads, surface transportation, transit
2 Comments »
State Legislatures Continue to Charge Ahead with Transportation Investment
February 27th, 2014 | By: America's Infrastructure Report Card
Lawmakers at the state level continue to seek transportation funding solutions. Already early in 2014, several state legislatures are considering proposals to increase revenue or dedicate more funds to transportation projects. While a proposal to increase New Mexico’s gas tax by 3-cents per gallon failed to pass before the legislature adjourned this week, several other proposals around the country are still very much alive. In Delaware, Gov. Jack Markell has proposed to raise the state gas tax by 10 cents per gallon, and the proposal also includes a provision that would automatically trigger future additional increases to keep pace with inflation. Idaho truckers are calling for an increase in the state’s gas tax to fund much needed road improvements. They have pitched the bill on grounds Idaho should get started on tackling an estimated annual $262 million backlog of road and bridge projects. The Indiana state department of transportation wants lawmakers to approve an early release of $400 million saved in a special trust fund created last year which they hope to spend on highway projects. Meanwhile, legislation to allow Marion County (Indianapolis) and six surrounding counties to ask voters to approve local tax increases to fund transit continues to move through the legislature. Iowa lawmakers have taken the first step to act on a proposal to incrementally increase the gas tax by a total of 10-cents per gallon over the next three years. The bill recently passed a House subcommittee and is likely to continue to receive serious consideration. In a new poll, more Michigan residents say they would rather see the state spend a nearly $1 billion budget surplus on roads than provide income tax relief as some lawmakers in Lansing want to do, The Detroit Free Press reported. Meanwhile, in remarks to a joint meeting of the House and Senate Appropriations committees this week, Gov. Rick Snyder, while recognizing the need for comprehensive transportation funding, recommended a one-time cash infusion from the general fund of $254 million in 2015 to shore up the state’s infrastructure. In Minnesota, local leaders are urging the legislature to act this year. A group of the state’s mayors and other city officials are call for state legislators to should invest in transportation this year because it is the key to economic competitiveness for all communities. More than 70 Minnesota counties have also adopted resolutions in support of a comprehensive transportation funding package in 2014. Proposals are pending in both the Missouri House and Senate that would implement a temporary 1-cent sales tax increase with the new revenues dedicated to transportation. And, in the past week in Utah, the state Senate Revenue and Taxation Committee voted unanimously to send legislation to the full Senate that would index the state gas tax to the per gallon price of gasoline. These efforts obviously show the emerging importance of infrastructure investment at the state level. As one can see, these efforts include both Blue and Red states, proving that investment is indeed a bipartisan issue. 2014 is a critical year for transportation funding, and we hope these state efforts continue the momentum toward modernizing our nation’s infrastructure.Tags: gas tax, Idaho, Indiana, Iowa, Michigan, Minnesota, Missouri, New Mexico
No Comments »