Grand Rapids, Mich. — Michigan lawmakers and Governor Gretchen Whitmer have rolled out competing plans to address the state’s crumbling local roads, but their proposals could slow down the ongoing budget negotiations. While both plans share some common ground, the differences between them may delay the process of finalizing the state budget, which is set to be completed by July 1.
On Thursday, Speaker of the House Matt Hall, a Republican, unveiled the GOP’s road repair proposal. The plan calls for redirecting all tax revenue collected at the pump to fund road repairs, a move that Whitmer has also proposed. However, this shift in funds would likely create a significant funding gap for other state priorities, including education. Hall stated that the money for schools would be made up, though his release did not specify where those funds would come from.
In contrast, Governor Whitmer’s plan, introduced last month, suggests taxing large corporations, particularly “big tech” companies, to generate revenue for road repairs. However, Whitmer has yet to explain the specifics of how this tax would be structured.
Both parties agree that road repairs are necessary, but they are at odds over how to fund them. While both proposals include cuts to other areas within the state budget, negotiations over which programs or services should face reductions could prolong the budget process. The Republican plan, for example, relies on $600 million in higher-than-expected tax revenues, but there are questions about whether this revenue will be sustainable in the long term.
The challenge, according to experts, is that the two sides will have to come to an agreement on how to balance road funding with other essential state services, such as education and public safety. This could be a drawn-out negotiation, with significant impacts on the overall state budget.
Whitmer has suggested that a combination of cutting spending and raising taxes is necessary to fix Michigan’s roads. However, the Republican proposal notably avoids any new taxes, which has drawn criticism from some of Whitmer’s supporters, particularly those who advocate for a more progressive approach to funding infrastructure.
As the deadline for passing the state budget approaches, the road funding debate is likely to complicate matters. With the statutory deadline of July 1 looming, lawmakers may face a difficult choice: find a compromise on road funding or risk delaying the budget process altogether. The constitutional deadline of September 30 may also be in jeopardy if the two sides cannot find common ground.
While both the governor and lawmakers agree on the need to address Michigan’s deteriorating roads, finding a solution that satisfies both parties could be a long and difficult road ahead.
