Tri-City Sun

State Representative Mike Hoadley has urged the Legislature to advance a road funding plan proposed by House Speaker-elect Matt Hall. The proposal aims to prioritize infrastructure and fiscal responsibility by allocating nearly $3 billion annually for infrastructure improvements, including local roads.

Hall's plan suggests using existing tax dollars and expiring corporate incentives to fund these initiatives. This comes in response to a significant increase in general fund spending since 2018, with little of that increase addressing Michigan's deteriorating roads and bridges.

Hoadley emphasized the importance of local roads, stating, "While it’s important to address large, state-owned highways, the roads people use every day from driveway to highway have not been getting fixed and it’s an issue I hear about constantly from people across northern Michigan." He added that critical infrastructure is crucial for business decisions related to location and expansion.

The proposed plan includes several key components:

- An immediate allocation of $1.2 billion from annual corporate income tax revenue for infrastructure, focusing on local road agencies.

- Starting in FY 2025-2026, the remaining $600 million in annual CIT revenue will be dedicated to infrastructure by replacing three current earmarks: $500 million for the Strategic Outreach and Attraction Reserve Fund, $50 million for the Revitalization and Placemaking Fund, and $50 million for the Housing and Community Development Fund.

- Replacing the 6% sales tax on motor fuel with a corresponding revenue-neutral increase in the motor fuel tax to generate approximately $945 million more for infrastructure funding while protecting school funding from reduced sales tax revenue.

The plan aims to ensure that local roads receive necessary resources after years of being overlooked in favor of state highway repairs.