Michigan roads: Understanding where money raised by increasing gas taxes would go

Gov. Whitmer proposes 45-cent gas tax hike

By Rod Meloni - Reporter, CFP ®, Amber Ainsworth

DETROIT - Many Michigan drivers aren't on board with a gas tax increase to fix roads, especially because the tax has already gone up to repair crumbling streets.

Gov. Gretchen Whitmer proposed a 45-cent gas tax hike that she says is necessary and will go toward making sure the roads are better. She wants to spend nearly $6 billion in 2020 with more than $2 billion of that being generated from a higher gas tax.

If the tax jump is improved, most of the money would go to highways.

Just under half a billion dollars would go toward interstates, U.S. roads and M-routes this year, while that number would be more than $1 billion next year. The next 30 percent of tax revenue would go to principal arterials, which are non-highways. Seven percent would go toward minor arterials, or local roads, and 3 percent would go to transit

Whitmer also wants a Fixing MI Roads Review Committee to evaluate revenues, review effective money distribution and search for alternative funding. 

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