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State House Returns From Summer Break to Take Up Road Funding

MPRN

The state House briefly returns from its summer break this week to take up the debate over road funding. It will consider a state Senate plan that differs widely from the plan the House approved last month. 

A key difference is that the Senate plan raises the gas tax by 15 cents over three years. The House plan relies mostly on existing revenues. Gov. Rick Snyder has not endorsed either plan – although he has long called for a significant tax increase to pay for roads.

“We do need increased revenues in our state. We need better roads,” said Snyder. “And I hope we can get that done as quickly as possible.” “I hope they have constructive discussions. And we all need to work on some solution that works for all of us and works, most importantly, for the citizens of Michigan.”

Other than the gas tax hike, the Senate plan shifts about $700 million in existing funds to roads. It also includes a possible rollback in the state’s income tax rate. Snyder has also been quiet on whether he’d support an income tax cut as part of the plan.

“The first priority is to make sure we take care of roads and then we can always have discussions about other elements of the plan,” he said. “But we need better roads in Michigan.”

A number of both Democrats and Republicans in the state House say they’re uneasy with raising the gas tax for roads.

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