Snyder: Gas tax, Medicaid plans make fiscal sense

Michigan governor proposed $2.5B in new spending on road repairs, Medicaid

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LANSING, Mich. - Gov. Rick Snyder says $2.5 billion in new spending for road repairs and expanding Medicaid would actually save Michigan money.

The Republican governor hopes the fiscal benefits of the two major pieces of his proposed budget are a selling point to lawmakers and residents.

He says the state would get stuck with a huge bill down the line if it doesn't raise gas taxes and vehicle registration fees now. Snyder also says expanding taxpayer-funded health insurance to low-income people would be covered almost entirely by the federal government.

Snyder's plans are hitting resistance from some Republicans who control the Legislature. The debate will play out in coming months as lawmakers work to pass the budget by June.

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