November 3, 2011 < http://www.hollandsentinel.com/OUR-VIEW-Bite-the-bullet-and-raise-revenue-to-fix-Michigan-roads > Holland - Michigan roads and highways are in urgent need of repair. The system that funds road work in the state isn’t producing nearly enough money to keep up with the need. So, Michigan has two options: Raise taxes and fees to generate more money for roads, or accept the fact that the state’s infrastructure will continue to crumble and deteriorate for years to come. Those are the choices. There are no realistic alternatives. As part of a broad plan to improve the state’s infrastructure, Gov. Rick Snyder offered several ideas last week to generate more money for the state’s roads. We hope legislators take them seriously. The need for change is clear: State task forces in 2008 and 2010 both concluded it would take $1.4 billion beyond the state’s current budget just to maintain Michigan’s existing road and highway system. “Michigan’s infrastructure is living on borrowed time,” Snyder said in unveiling his plan last week. The root of the budget shortfall is clear as well: Michigan is getting less and less revenue from its flat 19 cents-per-gallon gas tax — the proceeds of which are used exclusively for transportation projects — as improved vehicle efficiency drives down fuel consumption. Thus far, legislators have resisted making any changes. But whether these lawmakers are sincerely concerned about the economic impact on struggling families or fearful of the political costs of voting for a tax increase, they must realize the status quo is untenable unless they are willing to condemn the state to living with a Third World level of infrastructure. We’ve already gained national infamy as the state where many counties have ground up paved roads and returned them to gravel because they couldn’t afford the maintenance. Snyder proposed two significant ideas. The first is to scrap the current gas tax and replace it with a percentage tax on the wholesale price of fuel. Snyder proposes setting that tax at a rate that would initially be revenue-neutral, about 6.7 percent. But as pump prices rise, as most people think they will in the future, the tax will in turn generate more money for Michigan roads. Another proposal offers a surer, and we believe preferable, method to raise more money for roads, and that’s an increase in vehicle registration fees. Though it didn’t propose a specific increase, the governor’s office said that an increase of $120 per year would generate nearly $1 billion more per year. That would be a big jump, but it may be less painful to absorb one big hit per year than pay more every time you fill up, especially given Michigan’s high gas prices. Snyder did offer some ideas for increasing efficiencies, including abolishing independent county road commissions and allocating funds for roadwork based on traffic volume, not just mileage. Such changes would be helpful, but they wouldn’t be game-changers. The bottom line remains: Fixing Michigan’s roads will take more money. Will raising the gas tax or increasing registration fees hurt the pocketbooks of Michigan drivers? Of course it will. But we pay for inaction as well, in higher repair bills, longer drive times and greater shipping costs for businesses. Three years ago a state transportation group estimated that Michigan drivers pay an estimated $318 per year for car repairs due to potholes. Meanwhile, we’ve never heard any plan from those opposed to a higher gas tax on how we can maintain the state’s roads without raising more money. We don’t know anyone who’s pleased with the state of the roads in Michigan. We can grumble about them or honesty address the issue and do something about it. No more excuses: It’s time to bite the bullet and fix the problem.

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