Ensuring value for taxpayer dollars is a paramount priority for House Republicans

Speaker Matt Hall has released an updated plan to fund roads with more than $3.1 billion in annual revenue without raising taxes.

The speaker began the road funding discussion by proposing a $2.7 billion plan in November. With strong tax revenues and additional time to investigate current funding, Hall’s plan is now a stronger and more detailed $3.145 billion plan that still focuses primarily on local roads.

The November plan permanently dedicated $1.7 billion from Corporate Income Tax revenues. After significant review, that total is now up to $2.2 billion, and specific line items have now been identified.

By the numbers: 

• $3.145 billion annually 
  
  • $2.2 billion from the Corporate Income Tax, offset in the following way:
    
    • $500 million from eliminating outdated and costly MEGA credits
      
    • $500 million from preventing legislative earmarks, based on average annual spending levels of nearly $600 million
      
    • $600 million in ongoing general funds from higher-than-expected tax returns after the state’s revenue estimating conference last week
      
    • $500 million that had been set aside for automatic deposits into the corporate attraction (SOAR) fund. Those deposits sunset next year, freeing up this funding in the budget. Future SOAR deposits will now need to be sold to the Legislature on the merits and on a case-by-case basis.
      
    • $50 million that had been set aside for automatic deposits into a corporate placemaking (RAP) fund that are set to expire.
      
    • $50 million that had been set aside for automatic deposits into a community development fund (HCDF) that are set to expire.
      
  • $945 million from permanently dedicating all taxes paid at the pump to road funding 
    
    • The plan removes the sales tax on gas and replaces it with a revenue-neutral motor fuel tax, which goes entirely to roads. Drivers will see no difference, but roads will receive more repair funds.

• $700 million to ensure school funding is not impacted by this shift will come from permanently dedicating sales tax revenue.

• The plan focuses more funding onto local roads that have been neglected for far too long. 

• The plan includes zero new taxes and no new bonds that increase the taxpayers’ long-term debt.

“Ensuring value for taxpayer dollars is important to the people we represent, and our priorities reflect that by targeting inefficiencies and waste,” Hall said. “Roads and infrastructure are top priorities, and our budget choices should reflect that. We are committed to restoring trust in government through smart, transparent reforms that prioritize the well-being of every citizen.”

Hall continues to lead with vision and purpose and his sharpened, detailed roads plan delivers concrete, achievable results for the people of Michigan.