A $2.7 billion plan introduced by Michigan Republicans in November to fix the damn roads has since swelled to $3.1 billion with higher than expected tax returns.

The updated road plan released by House Speaker Matt Hall, R-Richland Twp., on Thursday “is now a stronger and more detailed $3.145 billion plan that still focuses primarily on local roads,” according to a news release.

“Ensuring value for taxpayer dollars is important to the people we represent, and our priorities reflect that by targeting inefficiencies and waste,” Hall said. “Roads and infrastructure are top priorities, and our budget choices should reflect that. We are committed to restoring trust in government through smart, transparent reforms that prioritize the well-being of every citizen.”

Go Ad-Free, Get Content, Go Premium Today - $1 Trial

Hall’s updated roads plan comes the day after Gov. Gretchen Whitmer delivered a “Road Ahead” address at the Detroit Auto Show calling for increased taxes to fulfill her campaign promise to fix the damn roads.

“Fixing the damn roads means we all need to recognize some hard truths,” Whitmer said. “To my friends in the GOP: fixing the roads in a sustainable way means looking for new, fair sources of revenue. We can’t just cut our way to better roads. Defunding public safety or public health is not the way to fix potholes.”

Hall’s road funding plan suggests otherwise by maintaining public safety and health funding, while shifting funds currently dedicated to corporate business incentives and legislative pork spending to local roads.

The plan would permanently dedicate $2.2 billion from the Corporate Income Tax to roads by stripping out $500 million each in legislative earmarks and Michigan Economic Growth Authority tax credits. Another $600 million would come from higher than expected tax returns outlined by the state’s revenue estimating conference last week, while about the same amount would be saved by reworking deposits into the state’s corporate attraction, placemaking, and development funds.

Go Ad-Free, Get Content, Go Premium Today - $1 Trial

Do you think Elon Musk should purchase Facebook?

By completing the poll, you agree to receive emails from The Midwesterner, occasional offers from our partners and that you've read and agree to our privacy policy and legal statement.

“Those deposits sunset next year, freeing up this funding in the budget,” according to Hall’s news release. “Future … deposits will now need to be sold to the Legislature on the merits and on a case-by-case basis.”

That change comes amid increasing criticism of business incentive deals negotiated in secret by the Whitmer administration and select lawmakers in recent years. An investigation by The Detroit News published Wednesday shows Whitmer’s Michigan Economic Development Corporation offered eight different companies more than $1 billion in taxpayer-funded incentives since 2021, though only two companies ultimately took the bait.

Both of the accepted $1 billion-plus deals are now in limbo, with a Ford battery plant in Marshall downsized and delayed, and a Gotion battery parts plant near Big Rapids that remains tied up in litigation and public opposition over environmental concerns and the company’s links to the Chinese Communist Party.

Other funding for Hall’s roads plan would come from permanently dedicating all motor fuels taxes to roads, which would provide $945 million.

“The plan removes the sales tax on gas and replaces it with a revenue-neutral motor fuel tax, which goes entirely to roads,” according to Hall’s news release. “Drivers will see no difference, but roads will receive more repair funds.”

The Republican road funding plan is among other legislative priorities Hall contends will bolster public safety and infrastructure, while increasing transparency and accountability to taxpayers.

“Crucial investments in water and sewer infrastructure, as well as the establishment of a Public Safety Trust Fund, guaranteeing ongoing support for law enforcement and emergency services across the state will also be key pillars of priority for House Republicans,” according to the news release.

Additionally, transparency reforms will be front and center during the 103rd Legislature – House Republicans will target earmarks, lame-duck reform, and the revolving door between government and the lobbying industry to ensure that the people’s business is done with full accountability,” it read.

Michigan currently faces a roughly $3.9 billion annual shortfall in needed road and bridge repairs, a reality Democrats largely ignored during the party’s first government trifecta in 40 years.

Voters elected Whitmer in 2019 in large part on her promise to “fix the damn roads,” but six years later they remain far from her goal of 90% in good or fair condition.

Whitmer initially proposed to increase Michigan’s motor fuels tax by 45 cents to the highest rate in the nation to fund her road repair efforts, but was instead forced to borrow $3.5 billion for the work after lawmakers rejected the tax hike.

The bonding plan is now phasing out, and Michigan roads are “deteriorating faster than the agencies can repair them,” according to a 2023 Road & Bridges Annual Report.

The report shows while the state improved 16.2% of roads eligible for federal aid between 2021 and 2023, 21.2% of those roads declined. It’s the same deal for non-federal aid roads, of which “47% were found to be in poor condition … (or) 2% more than from 2021 and 2022,” according to the report.

The roads report, compiled by the Michigan Asset Management Council, predicts that by 2035 52% of roads will be in poor condition, 28% in fair condition, and 20% in good condition.

“We are now merely treading water, and our county road professionals are fighting a losing battle by trying to do the job at current funding levels,” Denise Donohue, CEO of the Michigan County Road Association, told MLive.