Good afternoon,
What a difference a week can make! Last week, we were facing a potential pause in state fuel tax collection and this week the legislature passed a supplemental funding bill adding an extra $79.2 million for roads in Michigan’s cities, villages and counties. Click here to read more about it.
Nothing like an election year to give us all road funding whiplash.
First, the governor has not yet vetoed the 6-month suspension of the gas tax passed by the legislature last week, but we still expect her to do so. To add to the weirdness of this week, even if she doesn’t veto this legislation, the bill that passed the senate would not take effect until well after the dates of the gas tax holiday. Either way, we no longer need to worry about losing this gas tax revenue. Good news, indeed.
Regarding the new funding announced this week, we need much more detail to understand how it will apply to our organization. Initial information seems to indicate that these are federal funds and will likely only be available for use on federally eligible roads (aka the primary road system). We will consider the implications of this appropriation, along with other potential budget adjustments, next month with our board when we have our first quarter budget review.
Road funding is a complicated and messy topic in Michigan and has been for decades. I know it is hard to frequently be on the end of this proverbial pointy stick, especially this time of year when our roads are in a fragile condition. Please know that many members of the community, me included, truly appreciate the work you do every day.
I hope you have a relaxing weekend.
Take care and stay safe,
Sheryl
P.S. I promise this is the last update about road funding for a bit, I know it is a painful topic 😊
