LANSING, Mich. — Last week the Michigan Commission of Agriculture and Rural Development (MCARD) passed a resolution supporting greater investment in the state’s roads and infrastructure.
"If we want our food and ag-based businesses to keep growing, investing in our local communities and keep creating jobs, then we need to make sure we have solid roads and infrastructure in place," said Trever Meachum, MCARD chair. "As a farmer, I take great pride in making sure I am providing a beautiful apple to consumers. I don’t want that apple to turn into applesauce as it makes its way from my farm to the market.
"Michigan put the world on wheels, but now is the time to make sure we have a modern infrastructure in place to continue to attract new business development, spur more economic development within our hometowns, as well as attract and retain jobs. The state needs to continue to be a transportation leader to be able to move goods safely, reliably and efficiently across the nation and the globe."
According to the commission’s statement, the state’s food and agriculture system relies on having a smooth, integrated transportation infrastructure to move raw materials, ingredients, products and more through the supply chain to consumers. The deteriorating condition of Michigan’s roads and bridges puts that system in jeopardy.
The resolution, passed during the commission’s meeting March 18, comes amid the backdrop of an impending statewide vote May 5 on whether to raise taxes to fix the state’s ailing roads. Proposal 1 would increase revenue for roads and stabilize funding for schools and local governments.
If passed, it would provide constitutionally protected new road funding of $1.2 billion for state and local roads, constitutionally protected new school funding of $200 per pupil and constitutionally protected new local revenue sharing of $100 million for cities, villages and townships.
Prop 1 is a key part of a deal reached on Dec. 19 between the legislature and Gov. Rick Snyder. The ballot measure asks voters if they want to raise the state sales tax by 1 percentage point, from 6 to 7 percent. That is expected to raise $1.34 billion a year. It would eliminate the 6 percent sales tax on fuel, losing $752 million a year.
If the complex measure is approved, a wholesale tax on motor fuels would start Oct. 1, 2015, which is expected to generate $1.2 billion. Elimination of the sales tax on fuel, coupled with a new tax on motor fuels, would ensure those tax revenues would be used for transportation. Sales taxes on fuel are not necessarily used for road funding. The plan would also increase registration revenues by ending the 10 percent rollback that new car owners now get for three years after buying the vehicle, generating an additional $45 million from vehicle owners and $50 million from heavy trucks.
Registration fees for commercial trucks would be raised, as well as those for hybrid and electric vehicles. Otherwise, registration fees for cars and light-duty trucks would not be raised. According to the Local Roads Matter coalition, Michigan has for decades ranked in the bottom 10 states for funding of its roads and infrastructure. In 1992 it ranked 49 out of 50 for roads and infrastructure spending, the group said, quoting figures from the U.S. Census Bureau.
Local Roads Matter coalition mem-bers include Michigan county road com-missions, construction worker and civil engineering trade groups and agricultural trade groups. Member ag groups include Agricultural Leaders of Michigan, Michigan Agri-Business Assoc., Michigan Apple Assoc., Michigan Farm Bureau, Michigan Forest Products Council and Michigan Milk Producers Assoc.
Not everyone is in favor of the deal. The Americans for Prosperity activist group, for example, says Michigan drivers will pay 23 cents more per gallon of gas under the plan, putting Michigan in the top five states with the highest gas taxes and giving it the highest excise tax in the nation.
Recent polls have suggested voters are about evenly divided on the plan.
