© 2024 Interlochen
CLASSICAL IPR | 88.7 FM Interlochen | 94.7 FM Traverse City | 88.5 FM Mackinaw City IPR NEWS | 91.5 FM Traverse City | 90.1 FM Harbor Springs/Petoskey | 89.7 FM Manistee/Ludington
Play Live Radio
Next Up:
0:00
0:00
0:00 0:00
Available On Air Stations
Coverage from across Michigan and the state Capitol with the Michigan Public Radio Network and Interlochen Public Radio.

Lawmakers look at a Plan B in event road funding tax hike fails

Plan B would devote to roads all tax money paid at gas pumps.
FLICKR USER CLOTEE PRIDGEN ALLOCHUKU / FLICKR
Plan B would devote to roads all tax money paid at gas pumps.

Listen to Stateside's conversation about Plan B with Jonathan Oosting from Mlive.com.

It looks like some lawmakers who aren't happy with the May ballot proposal to increase road funding are trying to come up with an alternative.

Plan B would devote to roads all tax money paid at gas pumps.
Credit FLICKR USER CLOTEE PRIDGEN ALLOCHUKU / FLICKR
Plan B would devote to roads all tax money paid at gas pumps.

“Well Plan B, which is being introduced in the House, is actually going to sound very familiar to a lot of people because, as the sponsor Gary Glenn calls it, it’s essentially theBolgerPlan, which the House actually approved last year,” said JonathanOosting,who covers the Capitol for Mlive.com. 

“What that plan would have done, and would do under this new legislation, is eliminate the sales tax on fuel, but then increase fuel taxes by a similar amount.," he said. "It aims to be a revenue-neutral plan but that would dedicate all of the taxes paid at the pump to roads.”

Being so similar to theBolgerplan, which didn’t have support from the Senate last year, Plan B is likely to face some hurdles. Still, these lawmakers have hope. For one thing, the legislature is more conservative this year.

“But really the issue here is not only the Senate, but the governor,”Oostingsaid. “The governor criticized what’s being called theBolgerPlan pretty significantly last year. He said it would really hurt schools and cities which rely on sales tax revenue for some of their funding. So by eliminating that sales tax on fuel, you would potentially cut the amount of future funding that schools and cities can get.”

Democrats are unlikely to support Plan B for this reason. 

“Gary Glenn points out, and I want to make this clear, that his plan wouldn’t cut school spending," Oostling said, "but what it would do is limit future revenue growth for the School Aid Fund. So it’s a similar debate to what we heard with education funding in the governor’s race last year. Actual education funding may have increased, but potential education funding did not.”

Copyright 2021 Michigan Radio. To see more, visit Michigan Radio.

Read more about the Stateside.