How Much Is Michigan Currently Spending On Roads?
There is quite a bit of discussion about Michigan needing to spend more on our roads and bridges so why don’t we look at what Michigan is currently spending on our roads and bridges.
According to an article published by the Michigan Capitol Confidential, the news site for the Mackinac Center for Public Policy the number is at a record level.
In their research they reviewed only tax dollars that the state of Michigan was spending on our roads. The number did not include any tax dollars from the federal, local or private dollars where possible.
With all that in mind the state of Michigan in inflation adjusted numbers spent $3.6 billion dollars this year alone. That $3.6 billion dollars is the most they ever spent in since 1940, which is the furthest back state record go.
With Governor Whitmer and the Michigan Democratic Party wants to increase our state gas tax from 26.3 cents per gallon to 71.3 cents per gallon, that comes to a 45 cent per gallon state tax increase. According to Governor Whitmer’s own executive budget recommendation, that 45 cents per gallon state tax increase is expected to bring in $2.5 billion dollars per year to Michigan’s treasury.
If the tax increase is expected to bring in $2.5 billion then why does Governor Whitmer’s executive budget recommendation propose to only spending an additional $1.9 billion on roads, not the $2.5 billion expected to be generated and flow into Michigan’s treasury? What happens to the other $600 million, or 24% of the additional gas tax revenue. Well those funds will be used to support other state spending and not for “fixing our damn roads”.
This brings us back to the record amount of tax dollars being spent on roads and bridges today which is $3.6 billion inflation adjusted dollars. This state tax increase would increase our current spending to close to $6 billion dollars, taking into consideration the inflation adjusted amount of $3.6 billion.
I recently interviewed Michigan State Senator Bizon who informed my listeners that we are at full employment with people who work on our roads here in Michigan. If that is true who would get the increase of road funding, it would have to be out of state workers which would increase our cost dramatically.
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