State Representative Mike Hoadley today called for the Legislature to move forward with a road funding plan recently unveiled by House Speaker-elect Matt Hall that prioritizes infrastructure and fiscal responsibility.

By dedicating existing tax dollars and expiring corporate handouts, Hall’s plan would invest nearly $3 billion in additional funding for infrastructure each year, including long-neglected local roads. The targeted investment proposal comes as general fund spending has grown by more than $4 billion since 2018 — a 40% increase — with almost none of that increase going toward Michigan’s crumbling roads and bridges.

“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,” said Hoadley, of Au Gres. “As someone with over 20 years of owning and running a small business, critical infrastructure is one of the first boxes to check when considering where to bring, expand or remain in business. This plan will drive growth in our state and deliver on something workers and families across our communities have been asking for.”

The plan would:

• Immediately dedicate $1.2 billion of annual corporate income tax (CIT) revenue for infrastructure, with the most resources going to local road agencies. County and city roads have been left behind in recent years, with the governor’s $3.5 billion in bonds over six years only supporting state highway repairs. This new dedicated funding will ensure local roads get needed resources.

• Beginning in FY 2025-2026, dedicate the rest of the $600 million in annual CIT revenue for infrastructure. This funding will utilize existing funding by replacing three current earmarks: $500 million for the Strategic Outreach and Attraction Reserve Fund that pays for corporate incentives, $50 million for the Revitalization and Placemaking Fund, and $50 million for the Housing and Community Development Fund. The SOAR and RAP earmarks are set to expire after FY 2024-2025 anyway, so Hall’s plan would replace that expiring allocation by dedicating more resources for roads. The end of automatic SOAR funding will force the governor and others to actually make a good case for new incentive funding after recent projects have wasted billions of dollars and created few jobs.

• Replace the 6% sales tax on motor fuel with a corresponding revenue-neutral increase in the motor fuel tax, which exclusively supports infrastructure funding. This will yield about $945 million in additional resources. The plan would also hold school funding harmless from the decrease in sales tax revenue.