Nik Rajkovic / news@whmi.com

Michigan's Speaker of the House on Thursday released an updated plan to fund roads with more than $3.1 billion in annual revenue without raising taxes.

According to a press release, Speaker Matt Hall began the discussion on fixing Michigan roads by proposing a $2.7 billion plan in November. With strong tax revenues and additional time to investigate current funding, Hall’s plan is now a stronger and more detailed $3.145 billion plan that still focuses primarily on local roads.

Speaker Hall’s plan in November permanently dedicated $1.7 billion in funding from the Corporate Income Tax. 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$500 million from eliminating outdated and costly MEGA credits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.

Crucial investments in water and sewer infrastructure, as well as the establishment of a Public Safety Trust Fund, guaranteeing ongoing support for law enforcement and emergency services across the state will also be key pillars of priority for House Republicans. Additionally, transparency reforms will be front and center during the 103rd Legislature – House Republicans will target earmarks, lame-duck reform, and the revolving door between government and the lobbying industry to ensure that the people’s business is done with full accountability.

“Ensuring value for taxpayer dollars is important to the people we represent, and our priorities reflect that by targeting inefficiencies and waste,” said Speaker Hall.

“Roads and infrastructure are top priorities, and our budget choices should reflect that. We are committed to restoring trust in government through smart, transparent reforms that prioritize the well-being of every citizen.”