Michigan Gov. Gretchen Whitmer has unveiled her latest pitch to boost transportation funding in a pursuit to “fix the damn roads.” The slogan was coined during her first gubernatorial campaign in 2018.
Seven years later, the state is wrestling with an annual deficit in road funding that the Michigan Infrastructure and Transportation Association estimated at $3.9 billion.
To help address the shortfall, the Democratic governor has a $3 billion plan that includes funds to fix local roads, boost transit and improve safety on the roads.
“It is fiscally responsible, balanced and sustainable, including new cuts and revenue streams to fix the damn roads the right way,” Whitmer said in prepared remarks.
Fuel tax revenue
One part of her plan would ensure that all state fuel tax revenue is applied to roads.
Since Jan. 1, truck drivers and motorists fueling in Michigan have paid a 31-cent state excise tax.
There is also a 6% state sales tax on every gallon of fuel sold. However, 25% of those funds are diverted away from transportation.
The governor’s office said her plan would “ensure that every penny drivers pay at the pump goes toward Michigan infrastructure.” If so, $1.2 billion would be put into roads, bridges and transit.
Corporations and truckers tapped to contribute
Whitmer also wants to collect $1.7 billion in new transportation revenue from corporations and Big Tech industries that include Amazon, X, Facebook and TikTok.
She said it is time these businesses “pay their fair share” to do business in Michigan and use state roadways.
“To deliver goods and services to Michiganders, these corporations haul heavy weights using semi-trucks that deteriorate roads and bridges faster than commuter vehicles,” Whitmer said.
The governor’s office touts the plan as ensuring that corporations help rebuild roads “proportionally to the damage they cause.”
Pot tax
Another part of her plan is described as closing a loophole that exempts the marijuana industry from the state wholesale tax. The tax is applied to similar smoking products.
“The industry, which recorded billions in sales in 2024, uses Michigan roads to transport marijuana multiple times throughout the process,” the governor’s office stated.
Including the marijuana industry in the wholesale tax collection is estimated to add $470 million to help fix roads across the state.
Whitmer said she looks forward to working with both parties at the statehouse to get a deal done. The task is expected to be more challenging this year, with House Republicans gaining control of the chamber. Democrats again claim the Senate majority.
House Republican plan relies solely on existing revenue to fix roads
In January, House Speaker Matt Hall released a transportation-funding plan touted to tap $3.1 billion in annual revenue without raising taxes.
Hall, R-Richland Township, is focused on using fuel revenue and the Michigan corporate income tax to bolster local transportation infrastructure projects. Specifically, he wants to allocate $2.2 billion of corporate income tax revenue to infrastructure and apply every penny of state tax at the fuel pump to road funding.
Hall also wants to replace the sales tax with a corresponding revenue-neutral increase in the excise tax. The move would ensure that all fuel tax revenue is applied to infrastructure.
The change is estimated to raise $945 million in additional road revenue.
“I appreciate Gov. Whitmer joining the conversation on this issue, and I look forward to working together to ensure Michigan drivers get safe, reliable roads they deserve,” Hall said.
Unlike Gretchen Whitmer, Republicans have a plan to fix our roads WITHOUT raising taxes: pic.twitter.com/EUD01dy3xK
— Senator Aric Nesbitt (@SenAricNesbitt) February 10, 2025
Senate Republicans have doubts about governor’s transportation plan
Senate Minority Leader Aric Nesbitt, R-Porter Township, said Whitmer is once again relying on tax and spending.
“For six years, Gov. Whitmer has failed to introduce a real plan to fix Michigan’s roads other than a 45-cent gas tax increase and her unilateral maneuvering to rack up $3.5 billion on the state’s credit card because she refused to work with the Legislature,” Nesbitt said. “She’s already floated the idea of new taxes on Michigan drivers based on the miles they travel. Now, she wants to reach deeper into the coffers of Michigan businesses and impose unspecified fees and taxes that will surely trickle back down to consumers. The bottom line is that she has no real plan, because she refuses to cut back on wasteful government spending.”
Nesbitt commended the House Republican plan as a “workable road-funding plan that invests in our crumbling infrastructure without taking more from struggling Michigan taxpayers.” LL
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