On Tuesday, voters overwhelming voted no on Proposal 1 – the road-funding proposal that would have raised the state’s sales tax from 6 to 7 percent. Apparently voters did not like everything that would have come with the new legislation.
Many of them said they simply did not understand the vast nature of what they were voting for beyond the fixing of roads.
The proposal would have amended the state constitution to replace and supplement revenue to schools that would have been lost due the elimination of the sales/use tax on gasoline and diesel fuel. The key to this proposal was that it would have provided additional money for roads that are in terrible shape by increasing the gas tax and fees for vehicle registration.
The proposal also would have triggered 10 other laws designed to boost road funding and maximize the new investment with construction warranties and minimize the burden on low-income residents by expanding the Earned Income Tax Credit.
The package was expected to create $1.25 billion a year for roads once it was fully implemented, along with a combined $600 million a year for schools, cities, mass transit and the state’s general fund.
Bottom line, the amendment would have: Eliminated sales / use taxes on gasoline / diesel fuel for vehicles on public roads, increased portion of use tax dedicated to School Aid Fund (SAF). Expanded use of SAF to community colleges and career / technical education, and prohibit use for 4-year colleges / universities.
It also would have triggered laws that: Increased sales / use tax to 7%, as authorized by constitutional amendment; Increased gasoline / diesel fuel tax and adjusted annually for inflation, increased vehicle registration fees, and dedicated revenue for roads and other transportation purposes, expanded competitive bidding and warranties for road projects and increased earned income tax credit.
As of this morning, the Proposal 1 sales tax and road funding initiative looks to be a thing of the past as Governor Rick Snyder and the state legislature scramble to find another way to fix Michigan’s troubled roads.
Zack Burgess is an award winning journalist. He is the Director/Owner of OFF WOODWARD MEDIA, LLC, where he works as a writer, editor and communications specialist. His work can be seen at zackburgess.com. Twitter: @zackburgess1
About Post Author
