Mike Green and Charles Brunner Address Chamber. Rob Clark Moderates
(MyBayCity Photo by Steve Kent)
STATE DOING GREAT: But Funding Repair of Crumbling Roads Perplexes
April 26, 2014
By: Dave Rogers
State Senator Mike Green, Republican of Mayville, and State Rep. Charles Brunner, Democrat of Bay City, agree that Michigan's roads are not bad -- they're terrible.
How to fund improvements is the problem.
The duo spoke at the 2014 State Legislative Luncheon of the Bay Area Chamber of Commerce on Friday at Bay Valley, each displaying a willingness to work with the other on critical state problems -- especially roads.
"We need to change how we fund roads and this is an ongoing discussion," said Sen. Green, the lead-off speaker after a welcome by Michael Stodolak of Independent Bank and introductions by Dave Dunn of Wolverine Bank.
Green ticked off a list of state accomplishments especially the end to the business tax and the personal property tax. "We have eliminated the deficit and set the stage for surpluses," said the senator.
He asserted that $800 million has been added to the education budget, three credit agencies have upgraded Michigan's economy, Michigan is No. 4 in major new corporate expenditures, and the state has the sixth highest job growth in the nation. "We really are the comeback state!" he exclaimed.
However, there is much to do, he said. "The gas tax catch-up game has to end," said Green, observing: "The governor has asked the Legislature to raise taxes for roads -- and that seems to be the only answer."
"The roads were bad -- now they're terrible," exclaimed Rep. Brunner, adding: "the solution is a better system of funding." He said he is "open to discussion" on an increase in the gas tax but not a hike in vehicle registration fees, noting that the state's economy is better but still very fragile.
Brunner said he is asking MDOT (Michigan Department of Transportation) to move up on their schedule changes to the dangerous Mackinaw Road interchange accessing US-10, where two motorists have been killed in accidents.
While the talks were going on in Bay City, Speaker of the House Jase Bolger was outlining a $500 million "starter" plan to address the road issue. And pundits were speculating that Gov. Rick Snyder's fervor for tax cuts was waning in face of the overwhelming need for infrastructure improvements.
The Bolger proposal calls for the following changes, with projected 2015 revenue amounts in parenthesis:
Repeal the 19 cent-per-gallon tax on unleaded gas and 15-cent diesel tax and replace them with 6 percent wholesale taxes. ($47 million from the diesel tax based on $4 per gallon fuel; the unleaded change wouldn't bring in more money if gas costs $3.55 per gallon.)
Apply the newly purchased vehicle value immediately upon transferring a license plate. Motorists would have to pay the difference in vehicle registration fees between their old vehicle and new one at the time of the plate transfer instead of waiting until their registration expires. ($20 million)
Increase the permit fees for overweight and oversized vehicles. ($4.5 million)
Permanently dedicate a portion of the existing 6 percent sales tax collected on fuel to roads. This would take money that otherwise would have gone to the general fund, but it would not impact money reserved for schools and local governments. ($130 million)
Permanently dedicate 1 percent of the 6 percent use tax to roads. The use tax is paid mostly by businesses when sales taxes are not charged on out-of-state purchases. ($239 million)
Send late payment fees from vehicle registration to road funding instead of the general fund budget. ($10 million)
End special discounts that allow for different vehicle registration fees. For example, farmers get discounts on their farm trucks, but they also receive a discount for passenger vehicles. ($5 million)
Rob Clark, editor of The Bay City Times and Community News Director of MLive Media Group, was facilitator for questions.
Matt Schmidt, new superintendent of the Bangor Township Schools, asked about a teacher evaluation bill, apparently reflecting concerns of a number of educators attending.
Green commented: "There was no way to get rid of a bad teacher -- now we can," noting that he hears from parents frustrated by dealing with the quality of education their children are receiving. "One bad apple spoils the barrel," he said.
Chamber President Mike Seward ended the session with a rousing recitation of Chamber goals, especially improved access to Saginaw Bay, cleaner beaches and a Paraleon Beach project at the foot of State Park Drive.
He touted the upcoming "Bay Area On The Go!" annual development exposition set Thursday May 27 at the DoubleTree beginning with registration and continental breakfast at 9 a.m. Keynote speaker at a luncheon will be John G. Russell, president of CMS Energy and Consumers Energy.
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