Whitmer Promotes $2 Billion Road Funding Amid Controversy
With the arrival of the construction season, Michigan drivers are once again reminded to watch for road crews and orange barrels as Governor Gretchen Whitmer officially kicks off the state’s road repair efforts. Adorned in a patriotic helmet, Whitmer marked the occasion at an M-14 construction site, emphasizing the importance of the nearly $2 billion annual funding secured with the state Legislature.
“This is a big investment that was long overdue,” Governor Whitmer stated. “There’s still going to be more work to do here, no question, but this will represent a significant improvement in the infrastructure we all rely on.”
In her final year as governor, Whitmer highlighted that this funding package is a substantial step towards fulfilling her campaign promise to “fix the damn roads.” Despite not achieving all her initial goals, such as the proposed 45-cent gas tax increase, the deal offers a long-term funding approach to improve state roads and bridges. However, Whitmer acknowledges that further funding will be necessary in the future.
“I’m talking about the nature of infrastructure – it’s never done,” she remarked. “You’re always re-building and we’ve let it go for so long without a real infusion of sustainable dollars.”
The road funding plan involves removing the sales tax on fuel, replacing it with a dedicated gasoline tax to ensure all collected taxes are allocated to road improvements. Additionally, part of the funding comes from corporate tax revenues.
Nevertheless, a significant portion of this funding is under scrutiny due to its reliance on revenue from a new wholesale tax on cannabis products. The tax is currently being challenged in court by the state’s recreational marijuana industry. Lawsuits claim it violates a 2018 voter initiative and exceeds the constitutional sales tax rate, as the Legislature did not secure super-majority approval.
Rose Tantraphol, spokesperson for the Michigan Cannabis Industry Association, expressed concerns, saying, “There’s nothing sustainable about the road funding plan. It was established through an unconstitutional process and sets up a tax structure that is illegal. The road funding compromise singled out the cannabis industry and has already triggered business closures and job losses. Undercutting one industry isn’t going to raise the revenue that the state hopes to raise.”
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