Locals react to proposed road funding plan, decision left to voters
Published 9:18 am Monday, December 22, 2014
Working on one hour of sleep after a long night of legislative duties, Rep. Dave Pagel said Friday morning he is happy that Michigan lawmakers have approved plans to fix the state’s crumbling roads.
“It is a shame we have to function this way sometimes where we get up against the deadline, or into the wee hours of the morning, before a decision gets made, but I think the decision we arrived at is a pretty good plan,” said Pagel, who represents the 78th District in the state House of Representatives.
Pagel was quick to point out that the plan only works if the public supports it.
That’s because voters will be asked in the May election to approve an increase in the state’s sales tax from 6 percent to 7 percent.
If that doesn’t happen, the plan falls through and the state’s roads continue to deteriorate.
“It will take a vote of the people to confirm it, but that’s not a bad thing either,” he said. “I think it is a good plan in that it does fix the problem. That’s got to be No. 1 because our roads are getting to be almost in a dangerous situation.”
The plan will secure about $1.2 billion a year in new funding for roads and bridges, according to the office of Gov. Rick Snyder. It does this by repealing the sales tax on gas and replacing it with a new motor fuels tax that is dedicated solely to funding transportation.
Currently, about half of the state’s sales tax on gas goes toward schools and municipalities. Eliminating that tax would take money away from schools and municipalities, which is one reason why legislators are asking voters to approve a 1-percent bump in the state’s sales tax. A portion of the revenue created by the sales tax increase will replace what schools and municipalities lose from the elimination of the gas sales tax.
“We shouldn’t see too big a change at the pump for this plan, but they will have to pay a penny more in sales tax,” Pagel said. “I am hoping that people take a good hard look at it and that they’ll support it.”
Those who lead school districts in southwest Michigan were concerned about an early version of the plan that would have taken money away from schools.
One of those leaders — Niles Community Schools Supt. Michael Lindley — said he is pleased with the plan at first glance.
“There are some nice provisions in there for schools and I think they took some action that will help to protect K-12 funding,” said Lindley before saying he hasn’t had a chance to take a really close look at the plan. “I don’t know that anybody understands all the repercussions at this time… so there’s a lot to be learned yet, but at first glance I am happy with the way they protected school funding.”
The only potential down side for the Niles school district, Lindley said, is that they have already scheduled a bond issue to appear on the May 5 ballot — the same day that voters will be asked to approve an increase in state sales tax.
District officials thought the bond was going to be the only financial issue on the ballot.
“That’s what you hope when you have a tax increase question, but now theirs is also scheduled for May 5,” Lindley said.
Leadership at the Dowagiac school district had similar concerns, as the proposed plan would have sapped away around 5 percent of the annual budget, said Superintendent Paul Hartsig. The administrator’s reaction toward Thursday’s revised plan is much more positive, considering how it will benefit the district’s roadways without chopping away at its funding.
“It seems like it’s a better compromise for schools compared to the house version,” he said. “I’m happy, but we’ll have to see how things turnout next year.”
Despite the positive outcome, though, Hartsig said that the negotiations in Lansing were further proof of the challenges that come with trying to keep a school system financially stable.
“It’s tough to be in a position where you have to budget things out a year in advance, when things can change within a month,” he said. “We try to do the best we can, just as everyone else does.”