LANSING, MI – Led by Speaker Matt Hall, State Rep. Pauline Wendzel and Michigan House Republicans released an updated plan to fund roads with more than $3.1 billion in annual revenue without raising taxes. Fixing our local roads and bridges has been a top priority for House Republicans, and with strong tax revenues and additional time to investigate current funding, the plan is now a stronger and more detailed $3.145 billion plan that still focuses primarily on local roads.

The initial plan permanently dedicated $1.7 billion in funding from the Corporate Income Tax (CIT). After significant review, that total is now up to $2.2 billion, and specific line items have now been identified, leading to a more detailed and more robust plan for the roads.

By The Numbers: 

• $3.145 Billion Annually 
  • $2.2 billion from the Corporate Income Tax, offset in the following way:
    • $500 million from eliminating outdated and costly MEGA credits
    • $500 million from preventing legislative earmarks, based on average annual spending levels of nearly $600 million
    • $600 million in ongoing general funds from higher than expected tax returns after the state’s revenue estimating conference last week
    • $500 million that had been set aside for automatic deposits into the corporate attraction (SOAR) fund. Those deposits sunset next year, freeing up this funding in the budget. Future SOAR deposits will now need to be sold to the Legislature on the merits and on a case-by-case basis.
    • $50 million that had been set aside for automatic deposits into a corporate placemaking (RAP) fund that are set to expire.
    • $50 million that had been set aside for automatic deposits into a community development fund (HCDF) that are set to expire.
  • $945 million from permanently dedicating all taxes paid at the pump to road funding 
    • The plan removes the sales tax on gas and replaces it with a revenue-neutral motor fuel tax, which goes entirely to roads. Drivers will see no difference, but roads will receive more repair funds.
• $700 million to ensure school funding is not impacted by this shift will come from permanently dedicating sales tax revenue.
• The plan focuses more funding onto local roads that have been neglected for far too long. 
• The plan includes zero new taxes and no new bonds that increase the taxpayers’ long-term debt.

“This plan is a win for every Michigander who is tired of dodging potholes and waiting for the governor to keep her promise to fix the roads,” Rep. Wendzel said. “House Republicans are proving that we can fix our roads and bridges without raising taxes, without adding to our debt, and while prioritizing local infrastructure that has been neglected for too long. It’s time to get this done.”