Michigan Voters Reject Funding Measure

AASHTO Journal, 8 May 2015

In a sharply lopsided decision, Michigan voters overwhelmingly rejected a complex funding package May 5 that would have raised sales, fuel and vehicle charges to inject an extra $1.2 billion a year into road and bridge improvements plus $112 million for transit and more outside of transportation.

Unofficial election results as of May 6 showed that of more than 1.7 million ballots cast, 1.4 million voted “no” on a constitutional amendment to raise the state sales tax to 7 percent from 6 percent.

Had that measure passed, it would have also triggered a set of Legislature-passed laws to alter and raise motor fuel user charges and vehicle registration fees, and laws directing how the new revenue would be allocated.

The non-transportation aspects would have included $300 million more a year for schools, $94 million for local governments and $260 million in tax relief for lower-income residents.

News reports said some opponents had criticized the proposed increase in taxes, while others complained that the measure was too complex instead of being focused on infrastructure upgrades.

The Detroit News reported that Gov. Rick Snyder, who had helped negotiate the package with legislative leaders and campaigned for voter approval, issued a concession statement as the voting results came in.

“While voters didn’t support this particular proposal, we know they want action taken to maintain and improve our roads and bridges,” Snyder said. “The ‘relentless’ part of relentless positive action means that we start anew to find a comprehensive, long-term solution to this problem. Doing nothing isn’t an option as the costs are too great.” http://www.detroitnews.com/story/news/politics/2015/05/05/proposal-one/26952783/

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