Michigan Gov. Whitmer’s 2020 budget pledges motor fuel tax increases to fix roads

Michigan Gov. Gretchen Whitmer and State Budget Director Chris Kolb recently outlined the Fiscal Year 2020 Executive Budget Recommendation, focusing on a new motor fuel tax.

Michigan’s roads have been a hot-button issue for decades, and the deadlocked nature of debate over them has only opened room for them to further crumble. Even Whitmer alluded to this, dubbing the state’s roads the worst in the country. The American Society of Civil Engineers also graded the roads with a D-rating last year.  The causes are numerous, but low spending on highways per capita and a 2015 legislative effort to remedy roads which only resulted in slowing their decline, certainly contributed.

“People are driving on crumbling and unsafe roads and bridges, they want to turn on their tap and know that the water is clean and safe, and they want a strong educational system that leads to opportunity and a good job,” Whitmer said.

Whitmer has proposed three separate 15-cent motor fuel tax increases to take effect between Oct. 1, 2019, and Oct. 1, 2020. That plan could generate $2.5 billion in new annual revenue for the state, which would be put directly into a new fund: the Fixing Michigan Roads Fund. Its sole goal: fixing the most highly traveled and commercially important roads, whether they are state or locally operated.

The tax would not apply equally to everyone, however. Relief would be granted to lower income, working families, as well as seniors.

“I know this won’t be easy, but with one historic vote we can make the investments that are necessary to finally start fixing the damn roads,” Whitmer said.