Gas taxes and registration fees rise, but transportation budget isn’t getting all the funds

Posted at 4:34 PM, Jan 17, 2017
and last updated 2017-01-17 16:35:22-05

LANSING, Mich. – Increased taxes on gas and vehicle registration began at the start of the year here in Michigan, but where are those tax dollars going?

The bill that was signed by Governor Rick Snyder in 2015 allocated a 7.3% gas tax increase and a 20% increase in vehicle registrations.  The increases expected to bring in $460 million for the transportation budget.  According to the Mackinac Center for Public Policy, the legislature shifted all but about  $160 million out of transportation, to other projects.  The school aid budget is getting about $163.8 million more from the General Fund and the state agency that manages Medicaid is getting about $132.6 million more.

The center says that in past years, money was taken from the General Fund and moved to transportation as the state’s roads crumbled. Now with more income coming in to the transportation fund, it is being moved out to other funds.

Lawmakers, ahead of Tuesday night’s State of the State Address, are asking for more information now on how the state’s infrastructure is going to be fixed.

Gov. Snyder has always pushed for more funding for infrastructure and may do so again tonight.