Road commission, legislators want to pump up gas tax |
By MICHAEL CARNEY Capital News Service |
LANSING – Grand Traverse County roads are failing, and without more funding, they won’t get fixed anytime soon. But road commissions across Michigan might see a wish come true if the state passes a 9- cents-a-gallon gas tax increase, resulting in nearly a half-billion dollars more a year in funding by 2010. “We are looking at laying off a chunk of our workforce,” said Mary Gillis, manager of the Grand Traverse Road Commission. A tax increase would “mean a great deal to us.” The House Transportation Committee heard testimony recently urging it to increase the tax by 3 cents per year - in 2008, 2009 and 2010 – to pay for work on state and local roads. Drivers currently pay 19 cents a gallon in state tax. Under the proposal, the tax would reach 28 cents per gallon by the end of 2010. Diesel users would also see an increase. Their rate would more than triple - from 7 cents to 22 cents per gallon in 2008 - before increasing 3 cents per year in 2009 and 2010 to align with the gasoline rate of 28 cents per gallon. By increasing the gas tax, the state would bring in an additional $143 million in 2008, $286 million in 2009 and $429 in 2010 for roads, according to the House Fiscal Agency, a nonpartisan legislative arm that studies tax and budget matters. Gillis said, “We could continue to keep our level of service and do some work we can’t fund right now.” With extra funding, her road commission could do preventative maintenance and lengthen the lifespan of some roads, she said. But without it, the cost to repair or replace them would quadruple in four or five years, she warned. Townline Road south of M-113, Silver Lake Road west of U.S. 31 and North Long Lake Road are all in need of repairs that the road commission can’t afford right now, Gillis said. “We’re in rough shape,” she added. “Our population pretty much doubles in the summer months and there is no way to deal with that without extra funding. “It’s going to get worse if we don’t do something.” The commission is considering a millage increase to help fix some of the worst roads in the county. “People don’t believe it, but we are not funded by property taxes,” Gillis said. “They don’t understand how it works. People say, ‘I pay my property taxes, fix my roads,’ but it doesn’t work that way.” The state legislation has bipartisan sponsorship, which may help its chance for passage. The gas tax hike was introduced by Rep. Craig DeRoche, R-Novi, and the diesel tax increase by Rep. Hoon-Yung Hopgood, D-Taylor. At least one organization, however, argues that the state should try to lower the cost of gas, not raise it. “Gas prices are too high as it is. There has to be another way to raise money for roads,” said Mark Griffin, president of the Michigan Petroleum Association. The association represents more than 90 percent of the locally owned gas stations in Michigan. One of Griffin’s suggestions is to raise the sales tax from 6 percent to 7 percent, with the increase going toward roads, and eliminating the gas tax altogether. “By raising the sales tax, it will generate additional revenue while lowering the price of gasoline,” he said. “Gasoline is our lifeblood. You can decide what to buy and don’t buy, but you need gas,” added Griffin. “Those products we’re buying, how do they get there? By roads.” Eliminating the gas tax also would set Michigan apart from surrounding states and benefit the economy by drawing tourists to an area where gasoline is cheaper, he argues. “You can lower prices, help the state by drawing tourists and still have more than enough money to pay for roads,” Griffin said. “The gas tax is bad for our businesses and bad for our customers. We don’t benefit from high gas prices.” |
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