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Monday, March 24, 2025

Michigan House passes tax-free road improvement plan

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State Rep. Dave Prestin | Michigan House Republicans

State Rep. Dave Prestin | Michigan House Republicans

State Representative Dave Prestin has supported a legislative package aimed at improving Michigan's roads without increasing taxes. The package, consisting of House Bills 4180 through 4187 and House Bill 4230, proposes to allocate $3.1 billion annually for road improvements, with $2.5 billion specifically designated for local roads. This initiative passed the House with bipartisan backing.

Prestin emphasized the neglect of local roads in the Upper Peninsula (U.P.), stating, "Local roads in the U.P. have been neglected for far too long." He acknowledged the challenges faced by local road commissioners due to dwindling funding sources and expressed that this plan is an essential step towards addressing overdue construction projects.

The proposed plan includes reallocating $2.2 billion from the Corporate Income Tax (CIT) towards road maintenance, directing $220 million to the Michigan Department of Transportation (MDOT) and $1.98 billion to local roads. It sets aside specific funds for neighborhood streets and decrepit bridges, while also redirecting funds from expiring or inefficient programs.

Additionally, the legislation aims to ensure that large corporations contribute their fair share in taxes, generating approximately $500 million annually. It also plans to replace the sales tax on fuel with a fixed motor fuel tax, securing nearly another $1 billion for road improvements without raising taxes. Importantly, it earmarks $755 million for the School Aid Fund to offset any potential losses.

Prestin highlighted that achieving a successful roads plan without tax increases requires reducing excessive government spending and improving efficiency within state administration: "Politicians and career bureaucrats in Lansing know a roads plan can get done without raising taxes or taking funding away from schools."

A key feature of these bills is the creation of the Neighborhood Roads Fund, which will distribute money based on road miles rather than matching fund capabilities. Prestin noted its significance: "The new local roads fund will be a huge win for townships and other municipalities in the U.P."

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