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ALPENA --Northeast Michigan has been abuzz over a controversial portion of Gov. Gretchen Whitmer's budget proposal unveiled Tuesday.
When people find out how little of that funding would find its way to the Alpena area, that buzz could turn into outrage.
For the 2020 fiscal year that begins this fall, Whitmer proposed a 45-cents-per-gallon hike to the state's gas tax to raise revenue needed to repair and replace Michigan's roads. That increase, when added o a previous gas tax increase passed by the Legislature in 2015 and the states's sales tax on fuel, would make Michigan gas prices among the highest in the U.S.
State Rep. Sue Allor, R-Wolverine, who represents Northeast Michigan, said it wasn't long ago that Whitmer pledged to fix the roads without increasing the gas tax, so Whitmer's proposal caught her off-guard. Allor said she doesn't intend to support Whitmer's proposal, for several reasons.
"I was totally shocked, and the bottom line is it will be bad for the families in northern Michigan," Allor said. "We have so many people on fixed incomes that won't be able to afford it. That, and the fact that much of northern Michigan will see little of the money."
Allor provided The News with a graphic from Whitmer's proposal showing how funding from the gas tax would be allocated. The graphic shows only 2 percent of the funds would be used for local rural roads, which make up the bulk of the streets in Northeast Michigan. By comparison, 47 percent would be used for interstates and freeways, 30 percent for main roads that handle a high volume of traffic, 14 percent for minor arteries, 4 percent for local bridges, and 3 percent for transit rail and autonomous vehicles.
"The distribution is not going to be equitable, and most of it will be focused on the more urban areas," Allor said. "I want to see something that the people in the district will be able to benefit from, and not just those in the southern part of the state."
Northeast Michigan's state senator, Senate Appropriations Committee Chairman Jim Stamas, R-Midland, said that, if the price of gas rises as far as is projected under the new tax proposal, it would not only impact drivers, but, potentially, the state's economy.
"It will make us have the highest rates in the nation, and most of the money won't even come back to the north," Stamas said. "I think the roads in northern Michigan are just as important as downstate. I have concerns about this."
In 2015, Stamas and then-state Rep. Peter Pettalia, R-Presque Isle, voted with the majorities in their chambers approve a smaller increase to the gas tax that was geared toward fixing roads and paying off bond debt from road projects completed under the John Engler and Jennifer Granholm administrations. Money raised through the 2015 increase did not pay off the debt in one shot, as Stamas wanted, but the balance is slowly shrinking, he said.
The money from the 2015 tax increase was supposed to be used on roads through 2021, but the tax is open-ended, so it could stay in place longer.
Allor said there are a lot of roads that need work, but she has also seen improvements in some areas.
"There has been road work done in all of the counties, but there is a lot more work to be done," she said. "I just don't think a 45-cent increase to the price of gas is the answer."
Stamas said the Republican-controlled state House and state Senate will continue to work with Whitmer to find the best solution to the roads issue and other challenges the state faces.
"I think it is incumbent on us to work together to reach an agreement, not only on roads, but other things like education," Stamas said. "We shouldn't do anything that will harm the hardworking people of Michigan."
Like the 2015 increase, Whitmer's plan would phase in through a 15-cent increase every six months for 18 months. The state's fiscal year runs from Oct. 1 through Sept. 30, so the new budget needs to be adopted before midnight on Oct. 1.
Former Gov. Rick Snyder, a Republican, and the GOP-controlled Legislature he worked with had the budget completed by summer in each of the eight years he was in office. Republicans still control the Legislature, but Whitmer is a Democrat.
Steve Schulwitz can be reached at 989-358-5689 at sschulwitz@thealpenanews.com. Follow him on Twitter @ss_alpeanews.com.