State Rep. Pat Outman today voiced strong support for House Speaker Matt Hall’s updated road funding plan that would provide billions in additional resources for Michigan’s roads—without increasing taxes. The plan prioritizes fixing local roads that people drive on every day, not just highways.

The proposal directs $3.145 billion annually toward road improvements. This includes $2.2 billion from the Corporate Income Tax—redirecting funds currently set aside for business incentives—and an additional $945 million by permanently allocating all taxes collected at the pump to road repairs.

“This plan delivers real solutions without dipping back into taxpayer’s pockets,” said Outman (R-Six Lakes). “People in our communities are fed up with crumbling roads, and they want action. We’re putting forward a responsible approach that prioritizes repairs where they’re needed most.”

The plan includes zero new taxes and no new bonds that increase long-term debt for taxpayers. It also holds school funding harmless by dedicating $700 million in sales tax revenue to account for the decrease in what is normally allocated through gasoline sales tax.

Outman also pointed out that Gov. Gretchen Whitmer’s 2020 bonding initiative funneled $3.5 billion into state highway projects, while many local roads continued to deteriorate due to shifting budget priorities.

“Despite having a $9 billion surplus, Democrats pushed through massive budgets exceeding $80 billion while neglecting the local roads people drive on every day,” Outman said. “Unlike the governor’s plan, which relied on borrowing and more debt, our strategy maximizes existing resources to make a meaningful impact in our communities.”

Here’s where the $3.145B annually will come from:

• $2.2B from the Corporate Income Tax, offset in the following way:
  
  • $500M from eliminating outdated and costly Michigan Economic Growth Authority (MEGA) credits.
    
  • $500M from preventing legislative earmarks (based on average annual spending levels of nearly $600M).
    
  • $600M in ongoing general funds from tax returns, which the state’s Revenue Estimating Conference reported will be higher than expected.
    
  • $500M that had been set aside for automatic deposits into the corporate attraction (SOAR) fund. Those deposits sunset next year, freeing up this funding. Future SOAR deposits will now need to be appealed to the Legislature on the merits and on a case-by-case basis.
    
  • $50M that had been set aside for automatic deposits into a corporate placemaking fund, called the Revitalization and Placemaking Fund, which are set to expire.
    
  • $50M that had been set aside for automatic deposits into a community development fund, which are also set to expire.
    
• $945M from permanently dedicating all taxes paid at the pump to road funding
  
  • The plan replaces the sales tax on gas with a revenue-neutral motor fuel tax, which goes entirely to roads. Drivers will see no difference, but roads will receive more repair funds.
    
• $700M to ensure school funding is not impacted by this shift will come from permanently dedicating sales tax revenue.