Lege Trend: State Switches Away From User Fees to Fund Transportation to Rely on …

Michigan legislature is poised to approve a transportation funding shift from user fees to general revenue funded transportation.

What does Michigan’s new transportation funding bill look like?

  • $1.2-billion road funding plan
  • $600 million in general fund dollars being dedicated to roads each year, starting in 2020-21
  • It would “vault Michigan from 17th to 5th in the nation in terms of how much general fund money it earmarks for transportation”

 

What’s the opposition? Democrats, the chief opponents, say it moves money from education & public safety.

Why the move away from user fees? 

  • “user fee revenues have diminished as more fuel-efficient and alternative fuel vehicles like hybrids and electrics”
  • Inflation has also held down user fee revenues

Detroit Free Press | Michigan poised for big shift in how it pays for roads