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Road repairs in Michigan growing in cost by an estimated $3 million a day. LAME CALL: Legislators Duck Road Crisis, Toss Ball to Voters Next May
December 20, 2014
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In what will be known as "The Night of No Decision," Michigan legislators early today punted on a critical issue -- road repairs growing in cost by an estimated $3 million a day.
And some enraged voters' reactions online indicate they are intent on killing the proposal rather than approving it in an election on a proposed constitutional amendment next May.
Costs of deferred road repairs will skyrocket by an estimated additional $360 million as a result of the delay of a decision in Lansing.
The Detroit News reported on the surreal scene akin to Nero fiddling while Rome burned: "Just before midnight, Snyder and his transportation director, Kirk Steudle, were in the Capitol rotunda listening to a dozen House members sing Christmas carols, led by Rep. Ed McBroom playing piano."
Like Nero, who had started the fire himself in 64 AD, legislators likewise betrayed the people of Michigan by their abject failure to find common ground and fulfill their obligations.
At about 5:30 a.m. Friday, the Michigan Senate squeaked through a compromise plan asking voters to bump the 6 percent sales tax to 7 percent by approving a constitutional amendment in the May general election.
If voters approve the sales tax increase the 11-bill package OK'd early today will funnel $1.2 billion per year into road repairs, bolster public education by an extra $300 million annually and provide tax relief for low income families to help offset the sales tax hike.
The Senate vote was 26-12, just enough for the required two-thirds to place a constitutional amendment on the ballot.
The House earlier had approved the sales tax ballot proposal and the package of road funding bills from Gov. Rick Snyder and legislative leaders.
The Legislature's whirlwind 18-hour final day of the session that ended at 6:18 a.m. Friday morning drew a gasp of relief from Gov. Rick Snyder: "A lot was done in a very short period of time."
The House had approved the ballot proposal 94-16, moving the road funding package to the Senate.
Sen. Coleman Young, D-Detroit, joined 11 Republicans in voting "no," condemning the sales tax proposal: "It's not leadership. That's political cowardice, plain and simple."
Rep. Tom McMillin, R-Rochester Hills, complained that Republican leaders would not recognize him to speak, no doubt because of his opinion the Legislature should re-prioritize other spending in the state's $52 billion budget instead of raising taxes.
"We don't need to do this," he complained.
The House also passed two bills requiring collection of sales taxes on Internet purchases from retailers with a physical presence in Michigan that could generate $60 million additional.
"I think it's part of the equation, too, because that's money that should be going into the (state's) coffers," said Sen. Mike Kowall, R-White Lake Township. "It's tax evasion, no matter how you look at it."
The House Fiscal Agency calculated the package as having a net "impact" of about $1.7 billion. The revenue would be divvied up with $1.165 billion going for road and bridge repairs; $130 million for transit; $95 million for municipalities; and $300 million for public schools.
On a 78-32 vote, the House approved restoring the Earned Income Tax Credit to pre-2011 levels. The GOP majority slashed the tax credit in 2011 to help balance the state budget.
But restoration of the tax credit to provide tax relief for low-income residents was a stipulation Democrats made in exchange for their votes on the road funding package and sales tax ballot proposal. The state credit will rise from 6 percent of the federal Earned Income Tax Credit to 20 percent of the federal credit.
Restoration of the credit by 2017 is expected to cost the state $260 million, according to the House Fiscal Agency.
The GOP-controlled House voted 88-22 on a conference committee report to remove the sales tax on gasoline. Four Democrats joined 18 Republicans in rejecting the compromise legislation, which would trade the sales tax for a new wholesale gas tax.
House members approved the wholesale gas tax plan put forward by the conference committee late Thursday night on a 93-17 vote.
Two bills requiring competitive bids on some road construction projects sailed through the House on near-unanimous votes of 108-2 and 107-3.
Legislative leaders like term-limited Speaker of the House Jase Bolger of Marshall (Gov. Rick Snyder doubtless is relieved to see him go) cannot seem to bite the bullet necessary to raise taxes to fix roads.
"We depend on the governor and legislature who are paid to make decisions, not to delay and leave them up to voters," said one local observer. "If we have to vote on everything, why do we need them?"
Growled Daniel Howes of The Detroit News: "Michigan has a road problem -- and we all know it. Pretending it can all be fixed without impacting state spending or somehow raising taxes is unrealistic, the triumph of hope over common sense.
"Michigan's deteriorating roads and bridges are a national embarrassment, contradicting the narrative that the state's hometown automakers and its largest city are using restructuring and bankruptcy to chart new, competitive and more prosperous paths forward."
Legislators avoiding responsibility for the decision-making necessary to run the state is dereliction of duty that should not be tolerated.
Michigan's roads are ranked 45th in the nation, according to data compiled by Business Leaders for Michigan, the state's top CEO round table. Spending-per-mile ranks 47th of 50 states; traffic has increased 11 percent over the past two decades, but capacity has expanded only 1 percent.
According to a report from the Michigan section of the American Society of Civil Engineers, to delay the repair of roads and bridges within the state, and the rest of the country, costs individual families $1,000 per year in repairs, increased cost of goods and time delays."
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