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Industry Bulletins
Lansing State Journal: Snyder steering right direction on roads
November 3, 2011
http://www.lansingstatejournal.com/article//Snyder-steering-right-direction-roads
Gov. Rick Snyder is on the right track with his ideas for reshaping how Michigan faces its growing infrastructure crisis.
The reality is that the current tax and fee structure is not providing sufficient revenue to maintain Michigan's roads, streets and highways. It's time to solve the problem.
As far back as 2007, a coalition of groups that included the Michigan Chamber of Commerce, labor unions and construction interests were advocating for action to address the growing crisis.
None came, and then the 2008 recession rocked a state already weakened from its own economic slump. Michigan is slowly recovering, but it cannot let its roads continue to crumble.
Snyder has provided a broad vision with much worth considering. Now he will have to coerce legislative action.
His ideas are a starting point. One possibility he offered is a $120 increase in vehicle registration fees. It would double the $950 million currently raised from those fees, a major boost. Snyder also would consider an option for local communities to add up to $40 per vehicle to registration fees to help fund local road work, subject to voter approval. Both ideas have merit.
Snyder also wants to discuss replacing the state's per gallon gas tax with a tax on the wholesale value of fuel. That will be more complicated to sell to lawmakers and citizens. But ultimately, this is an issue that must be addressed. As fuel efficiency improves and more electric vehicles hit the road, per gallon taxes won't be able to keep up.
Snyder also wants a more efficient means for allocating road money. Current formulas lock in shares for state roads, county roads and local roads, but don't consider how heavily the roads are used.
Snyder would allocate more money for highways and bridges that carry the largest amount of traffic. That's just common sense for economic development.
Michigan is not alone with road woes. While gas taxes and registration fees are common funding sources, other states add weight fees, sales taxes on vehicle sales or a share of state lottery proceeds. And increasingly, states are pursuing toll roads.
Everything should be considered - except the status quo. Snyder started this vital conversation, don't let it die.
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