Legislation protects school funding; helps roads across the state

State Rep. Douglas Wozniak, of Shelby Township, today announced his support for newly unveiled legislation that will fix a problem in Michigan’s current road funding formula, generate almost $800 million for roads without new taxes and dedicate the money solely to local roads which lost out in the governor’s recent borrowing scheme.

The bipartisan bills focus on ensuring all state taxes paid at the gas pump go to fixing roads, with a priority on roads managed by local municipalities such as counties, cities and villages. The measures would phase out the 6 percent sales tax drivers already pay on fuel purchases over a three-year period and replace it with an equivalent revenue-neutral fuel tax.

The legislation also fills in the sizeable gap left from the governor’s recent decision to bond for $3.5 billion for state-owned highways in upcoming years. That proposal only can address state roads – a small percentage of Michigan’s total road miles.

“The Legislature constantly works on bills and ideas that will help improve the state and the quality of life for residents of the state. Roads are a major component of that,” Wozniak said. “This is good policy. It helps address roads throughout the state that people know are in the worst shape – local roads and not just state-owned highways.”

Importantly, the legislation is tailored to hold school funding harmless. Funds from the state income tax would hold the School Aid Fund harmless, and sales tax revenue currently dedicated to schools from fuel purchases would be fully replaced. Such built-in safeguards ensure investments into Michigan’s future generations – including those in Macomb County – continue and school funding is not negatively impacted in any way.

The measures will be referred to the House Appropriations Committee for consideration.