Today voters will go to the polls to decide the fate of Proposal 1 – the road-funding proposal that would raise the state’s sales tax from 6 to 7 percent.
The proposal would amend the state constitution to replace and supplement revenue to schools that would be lost due the elimination of the sales/use tax on gasoline and diesel fuel. The key to this proposal is that it will provide additional money for roads that are in terrible shape by increasing the gas tax and fees for vehicle registration.
If approved, the proposal would trigger 10 other laws designed to boost road funding and maximize the new investment with construction warranties and minimize the burden on low-income residents by expanding the Earned Income Tax Credit.
The package is expected to create $1.25 billion a year for roads once fully implemented, along with a combined $600 million a year for schools, cities, mass transit and the state’s general fund.
Bottom line, the amendment would: Eliminate sales / use taxes on gasoline / diesel fuel for vehicles on public roads, increase portion of use tax dedicated to School Aid Fund (SAF). Expand use of SAF to community colleges and career / technical education, and prohibit use for 4-year colleges / universities.
It would also trigger laws that: Increase sales / use tax to 7%, as authorized by constitutional amendment; Increase gasoline / diesel fuel tax and adjust annually for inflation, increase vehicle registration fees, and dedicate revenue for roads and other transportation purposes, expand competitive bidding and warranties for road projects and increase earned income tax credit.
As of this morning, the Proposal 1 sales tax and road funding initiative looks to be in trouble. According to a poll conducted by the Free-Press-WXYZ-TV (Channel 7), approximately 61% of likely voters said they plan to vote no on the proposal. The poll, conducted by EPIC-MRA of Lansing, found only 29% answering they would vote yes for the proposal.
Zack Burgess is an award winning journalist. He is the Director/Owner of OFF WOODWARD MEDIA, LLC, where he works as a writer, editor and communications specialist. His work can be seen at zackburgess.com. Twitter: @zackburgess1
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