Kalamazoo Times

House Speaker-elect Matt Hall has proposed a substantial plan to address the deteriorating condition of Michigan's roads and bridges, seeking bipartisan cooperation during the Legislature’s lame duck period. Hall aims to invest close to $3 billion annually in infrastructure, drawing from existing funds and expiring corporate incentives.

“Everyone says they want to fix the roads when the cameras are on, but nobody has taken any real steps to do it these past two years,” stated Hall, R-Richland Township. Highlighting the frustrations of the public with previous inaction, Hall explained that the House Republicans are positioned to implement a "real roads plan" at the commencement of their session in December.

The proposal suggests an immediate allocation of $1.2 billion from corporate income tax (CIT) revenues to infrastructure projects, particularly local road agencies. In addition, Hall plans to contribute $600 million more by 2026 and redirect state taxes from gas sales to road funding, resulting in a further $1 billion increase.

The dedication of $1.2 billion annually from CIT revenue intends to benefit local roads which have been overlooked in past infrastructure bond measures. In fiscal year 2025-2026, $600 million of annual CIT revenue would be re-allocated from other funds whose earmarks are set to end, focusing instead on roads, eliminating automatic funding for other incentive ventures.

A significant part of Hall’s plan involves replacing the 6% sales tax on motor fuel with an equivalent hike in the motor fuel tax to benefit infrastructure funding, without affecting school funding. This adjustment is expected to add approximately $945 million to resources dedicated to infrastructure.

“State revenue has exploded in recent years and so has government spending. But what do we have to show for it?” Hall commented, criticizing the political handling of funds that have bypassed local road improvements. “We need to dedicate this funding off the top to keep our politicians from blowing this money year after year.”

The state faces a potential funding crisis in 2026, with expected reductions in federal infrastructure support and the conclusion of Governor Gretchen Whitmer's debt-financed highway projects. Hall emphasizes the importance of focusing on local roads neglected by state-level spending.

“This administration’s focus on roads the past couple of years has been just on state highways,” Hall remarked, stressing the inadequacy of current strategies for local infrastructure. Urging the need for prudent fiscal leadership, Hall stated, “If we don’t want our roads to get even worse, we either need to raise taxes or actually make road funding a priority in the budget.”

The plan targets a prompt commencement on December 3 to enact these changes and positively impact Michigan's road maintenance and improvement.