After six years with no real solutions, Gov. Gretchen Whitmer unveiled a $2.75 billion plan to “fix the damn roads” that can be summarized in two words: more taxes.
The governor wants $470 million in new taxes on marijuana, $1.6 billion in taxes on tech companies like Amazon, Meta and TikTok, tax increases on heavy trucks, and possibly a corporate tax increase, The Detroit News reports.
Those proposed tax increases are in addition to others floated by Big Gretch in her record $83.5 billion budget request last week, which included $57 million in tax hikes on vapes and other nicotine products, as well as a 1,288% increase in fees on trash collectors that’s expected to generate another $80 million.
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Taken together, the price tag for Whitmer’s spending now swells to a whopping $86 billion for next fiscal year, or about $30 billion more than when she took office.
“I’m excited to introduce my brand-new plan that provides a long-term, sustainable solution to fix our roads so we can help more Michiganders stay safe on the road, save money, and get where they’re going faster,” Whitmer said in a prepared statement quoted by Michigan Advance.
“My plan is fiscally responsible and balanced, with both new revenue and cuts so we can lower costs for families,” she claimed. “I’m grateful to (House) Speaker (Matt) Hall for sharing this priority, and I look forward to working with him and both parties in the legislature to get this done.”
Whitmer’s road plan comes as taxpayers are spending $340 million this year to pay off $3.5 billion the governor borrowed for road repairs after her first funding plan to hike the state’s motor fuels tax was rejected by lawmakers.
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Whitmer’s decision to borrow $3.5 billion cost taxpayers $2.5 billion in interest, according to Michigan Department of Transportation data cited by The News.
That money is now gone, and Michigan faces a $3.9 billion annual road funding shortfall the governor described as a “major funding cliff” last month.
“If we don’t find a solution, our roads will get worse and more dangerous,” she said. “That means more expensive care repairs and delays on your drive home.”
Republicans in December unveiled their own plan to pump $3.1 billion into road repairs without raising taxes, but a Democratic trifecta blocked lawmakers from discussing it.
“House Republicans have been leading the conversation on road funding since day one. The very first priority I raised after being selected as Speaker on November 8, 2024, was the urgent need for a responsible, long-term solution to fix Michigan’s roads without burdening hardworking taxpayers,” Hall, R-Richland Twp., said in a statement. “Since then, we’ve put forward a detailed, transparent plan with the updated plan dedicating more than $3.1 billion annually to fix our roads – especially local and county roads – without raising taxes.”
The Republican 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, while about the same amount would be saved by reworking deposits into the state’s corporate attraction, placemaking, and development funds.
Other funding for Hall’s roads plan would come from permanently dedicating all motor fuels taxes to roads, which would provide $945 million.
“Government spending has grown 43% since Gov. Whitmer took office, and our local roads still have not been fixed. That’s why our approach focuses on our long-neglected local roads that people drive from their driveway to the highway and finally gives us a clear plan to fix them,” Hall said. “Michigan families expect results – that’s why our plan focuses on real solutions, including prioritizing funding roads over funding corporate earmarks, making the most out of our current budget instead of raising new taxes, and fixing local roads first.”
It was a similar message from Rep. Ann Bollin, R-Brighton Twp., chair of the House Appropriations Committee.
“Instead of working with us, Gov. Whitmer is pushing a plan that would raise taxes and fees on Michigan families by $2.5 billion, inflating her already massive $83.5 billion budget to a staggering $86 billion,” she said in a statement. “The problem isn’t revenue, it’s priorities. The money is there. We don’t need higher taxes to fix our roads. We need leadership that respects taxpayers, spends responsibly, and makes roads a priority.”
State Rep. Ken Borton, R-Gaylord, member of the House transportation budget committee, noted Whitmer’s plan doesn’t involve cuts to taxpayer funded business incentives or other Whitmer programs that have failed to deliver for those who fund them.
Instead, Whitmer’s budget calls for spending about $3 billion more than last year, while increasing taxes on a variety of businesses constituents rely on.
“These taxes could include businesses, retail delivery services like Lyft and Uber, towing, heavy truck parking, and internet advertising. It seems like she decided to put a tax on whatever came across her stream of consciousness during whatever planning process she made time for on her book tour,” Borton said in a statement.
“The governor likes to say she wants to fix the roads but then refuses to cut funding away from any of her failing programs in order to do it,” he said. “She would rather scrape the bottom of the barrel and come up with weird taxes on tow truck drivers and college kids working deliver than use her corporate welfare money to fix our roads.”
Senate Minority Leader Aric Nesbitt, a Porter Township Republican running for governor, said “Michiganders simply cannot afford any more of Gov. Whitmer’s failed tax-and-spend ideas.”
“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,” he said in a statement.
“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 to impose unspecified fees and taxes that will surely trickle back down to consumers. The bottom line is she has no real plan because she refuses to cut back on wasteful government spending.”
Senate Majority Leader Winnie Brinks, D-Grand Rapids, described Whitmer’s road funding plan as an “honest evaluation of the real costs of rebuilding and repairing our roads” in a email to Michigan Advance.
“The governor, speaker, and I have all expressed a desire to find a long-term, sustainable solution and I believe that we can take this complicated issue that has plagued our state for decades and turn it into a major bipartisan win for all Michiganders,” she wrote.
Michigan Infrastructure and Transportation Association that represent construction companies and suppliers, meanwhile, are urging lawmakers to take action on the $3.9 billion funding deficit for needed road and bridge repairs before it’s too late.
“It’s time for Michigan’s leaders to get together and get the job done. Michigan cannot afford to wait any longer,” MITA Executive Vice President Rob Coppersmith told Michigan Advance. “We look forward to seeing quick action in Lansing on a long-term, equitable, and sustainable infrastructure plan that saves thousands of jobs and puts Michigan back on the right track.”