A report released recently by the Mackinac Center for Public Policy supports long-term efforts to increase state transportation system funding. Without significant funding reforms, the condition of state, county and local roads in Michigan will deteriorate significantly over the next decade, while congestion levels will reach levels that will harm economic development prospects, according to the study written by John C. Taylor, Ph.D.

The Mackinac Center, a conservative think-tank, which rarely supports tax increases, calls for a gas tax increase in the report. This increase, along with an increase in diesel tax, would be tie-barred to reforms elsewhere in the state budget. Suggestions include consolidating the number of road agencies involved in Michigan road building and maintenance, closing loopholes in registration fee collections, and other reforms.

Although the Michigan Infrastructure & Transportation Association (MITA) agrees with much of the report, the 2 cents per year gas tax increase over three years, which is suggested in the document, does not go as far as MITA has been proposing. However, the report includes a concept of indexing based on the Consumer Price Index, which would result in an additional 5 cents per gallon for a total of 11 cents. In addition to other transportation revenue enhancement options, MITA has been calling for a 3-cent gas tax increase over the next three years to help raise over $1 billion in transportation funds. Bills that would allow this gas tax increase and other options were introduced recently in the state House due to efforts by MITA staff.