Speaker Pro Tempore Pam Byrnes (D-Mich.) on Jan. 26 introduced a plan that would generate funding to repair Michigan’s roads and bridges by steadily increasing gasoline and diesel taxes, while also helping to keep the state from losing more than $1.5 billion in federal transportation funding over the next three years.
“We have to invest in transportation to jumpstart Michigan’s economic recovery,” said Byrnes, chair of the House Transportation Committee. “Businesses won’t come to a state where roads are falling apart and bridges are crumbling. Times are tough across our state and losing these vital federal dollars will only hamper our ability to attract new job providers.”
According to a news release, Byrnes’ plan creates the Transportation Investment Fund by gradually increasing taxes on gas, from 19cts to 23cts gallon, and diesel fuel, from 15cts to 21cts gal, in March. The taxes on diesel and gas would then rise to 27cts gal in 2013. Under new legislation, these funds can only be used for roads, bridges and public transportation.
Without these increases, the state and local governments may not have the funds necessary to receive more than $1.5 billion in federal matching funds for projects to make critical repairs to roads and bridges.