The State House’s response was to shift some current state tax revenue to roads, with no net tax increase.
Leaders from both sides came up with a "compromise," which was adopted in the predawn hours of Dec. 19:
Increase state taxes and spending by $1.9 billion, of which just $1.2 billion goes to fix the roads, and the rest for other areas.
“It appears that everyone was at the table negotiating except the taxpayers,” said Leon Drolet, chair of the Michigan Taxpayers Alliance.
“And the deal reflects that.”
The latest round of efforts to find more money to "just fix the roads" began on Nov. 13 when the Senate passed its plan to increase gas and diesel taxes by that $1.2 billion over six years, with no reduction in other state taxes or spending.
Three weeks later, the House approved a comparable fuel tax hike, but with the increase offset by no longer imposing sales tax on fuel purchases.
This would have increased road funding with no net increase in taxes.
According to Gongwer news, House Speaker Jase Bolger said, "It takes two to compromise, and while I'm ready to compromise, it will take all parties to come to the table…”
The "compromise" that was adopted is a ballot proposal that represents a net tax hike of $1.945 billion, of which some 38 percent goes to spending that is unrelated to roads.
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