Rep. Cambensy works with GOP on new road spending plan
State Rep. Sara Cambensy, D-Marquette, is working on a new plan for state transportation spending with the Republican Speaker of the House.
The bills would eliminate the sales tax on fuel and replace it with an equivalent, revenue-neutral tax on fuel dedicated solely to roads. The bills also include strict protections to hold school funding harmless from any change.
Additionally, all revenue collected by the replacement tax at the pump will be dedicated specifically to local road funding, which would fill a gap left behind in the road bonding plan Gov. Gretchen Whitmer announced last month.
House Speaker Lee Chatfield says this revenue-neutral change would result in approximately $800 million annually in additional funding for the other 92 percent of roads that connect driveways to highways in every corner of the state.
The following bills are a part of the package of legislation:
• HBs 5582 and 5583, introduced by Appropriations Committee chair Shane Hernandez, and HB 5584, introduced by state Rep. Sara Cambensy, would eliminate the sales tax on fuel over three years.
• HB 5585, introduced by Transportation Committee chair Jack O'Malley, would create the revenue-neutral replacement tax on fuel.
• HB 5586, also introduced by Rep. O'Malley, would hold the School Aid Fund harmless from any change in tax collections because of this reform.
• HB 5587, introduced by state Rep. Mike Mueller, would direct all revenue collected through the revenue-neutral replacement tax to county, city and village roads.
The bills were referred to the Appropriations Committee for consideration.
Rep. Cambensy issued the following statement Thursday about the legislation package: