State Budget Move Forward Without Governor’s Gas Tax Increase

Liz Gullett

State Budget Move Forward Without Governor’s Gas Tax Increase

Apr 26, 2019

The Senate Transportation Appropriations Subcommittee reported their budget this week without including Governor Gretchen Whitmer’s proposed 45-cent gas tax increase. In order to fund repairs to roads and bridges, the subcommittee instead fully implemented the road funding plan passed in 2015 one year earlier than is required under the law. The proposed appropriation totals $600 million. The exclusion of Governor Whitmer’s plan has become a point of contention between her and the legislature. This week, following the committee’s vote on the budget bill, Governor Whitmer stated that she may veto the transportation budget bill when it reaches her desk. The bill has been sent to the full Senate Appropriations Committee for further consideration. However, it’s not anticipated her proposal will be inserted into the budget as both House and Senate Republican leaders have voiced their opposition to the proposed gas tax increase. The bill was sent to the full Senate Appropriations Committee for final approval.

A few other Senate budget bills were reported by their subcommittees to the full Appropriations Committee. Highlights include:

- University funding would increase by 1.5%, half of what Governor Whitmer proposed
- Funding to community colleges would be increased by 1.5%, which is also lower than the executive budget recommendations
- Appropriations for the Attorney General, the Department of Civil Rights, and the Department of State would decrease
- A proposed 2.7%-3% increase for constitutional revenue sharing
- A $50 million deposit into the state’s Rainy-Day Fund

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