The new year will mean more money for Michigan roads. Starting today, a license fee increase and increases in fuel taxes are in effect. County Road Association of Michigan Director Denise Donahue tells WSJM News that will mean $460 million more for roads this year, and $1.2 billion per year once all of the increases are fully implemented in five years. She says the state fell far behind in raising money for road maintenance a long time ago.
“There are a lot of things you can point to, but I think had the gas tax been indexed to inflation way back 20 years ago, we wouldn’t be in the situation that we’re in,” Donahue said.
Now, the gas tax will be indexed to inflation. Donahue calls the new road funding mechanisms a good start. It’s estimated Michigan would need $2.1 billion more per year to truly have good roads.