The More I Know, The More I'll Vote No

It's Not Just A Road Repair Bill

How much do you know about the Michigan May 5 ballot proposal to raise the Michigan sales tax from 6% to 7% ?

If you know as much as I do, than the people that want it passed are probably afraid of you.

That's because in a recent poll commissioned by the political news service MIRS, it stated. “Fifty-five percent of voters say if today the election was held they would vote ‘no’ against it,” said Ed Sarpolus with Target Insyght. And what's more, “When we actually read the ballot language, how it will appear on the ballot, the support drops from 55 percent to 65 percent ‘no,'” Sarpolus said.

For example did you know that the money raised by the increased sales tax will not all go to to future road repairs?:

• The package, as intended, is projected to pay down $865 million in debt in fiscal year 2016 while increasing funding for state and local road agencies by $368 million.
• In fiscal year 2017, $467.5 million would be used for debt payments while $764 million would go to roads.

Not until 2018 will the full intended amount go to new roads and ongoing road repairs.

Governor Snyder said he supports the debt payments called for in the package, noting that the state borrowed over a billion dollars to finance road repairs in the early 2000s. Thanks for making that clear Mr. Governor. It seems for YEARS the legislature and Governor have not been properly funding road repair and maintenance.

And the bill actually reduces some spending on roads from fuel taxes. Under the bill, the state would be limited to spending about $400 million in fuel tax revenue on roads in 2016 and $800 million in 2017, down from the current level of about $900 million.

In an article on the website Mlive: Michigan road funding package may require legislative fix due to drafting error, it stated (relating to the statements above):

Drafting errors are not uncommon in large legislative packages, and both Schneider (CRC director of state affairs) and Michigan Gov. Rick Snyder said it is likely that the Legislature will move to fix any problematic language if Proposal 1 is approved.

Wow. The Governor says "It's likely" they will fix a bill that has obvious problems AFTER it passes. How's that make you feel? Make you want to vote "Yes"? How about "No"?

And that's not the only reason those who read and understand the bill are deciding to vote against it. How about the fact that it is not really a 'road funding' bill at all. The proposal has a lot of other places the money raised will go to written into it.

• Dedicate 60 percent of the first 5 percent of the sales tax and an amount equal to 12.3 percent of the first 5 percent of the use tax to the School Aid Fund.
• Provide for the School Aid Fund to be used exclusively for aid to "public community colleges, public career and technical education programs, scholarships for students attending either public community colleges or public career and technical education programs."
• Dedicate 15 percent of the first 5 percent of the sales tax to be used for revenue sharing with townships, cities and villages. Currently, 15 percent of the first 4 percent is earmarked for revenue sharing with local governments.

A Lot of Hands Will be Grabbing for the Tax Increase Money

And if that's not all. It will also increase taxes in other areas and increase charges we pay for vehicles

• Increase the fuel tax to 41.7 cents per gallon from 19 cents per gallon of gasoline and 15 cents per gallon of diesel
• Remove the depreciation discount for annual vehicle registration fees.  
• Create a $75 annual surcharge for electric vehicles and a $25 surcharge for hybrid vehicles.

So while I, like most people who drive in Michigan, agree we need to come up with a plan to fix our roads, proposal 1 in May is not the way to do it.

My mind is made up. How about yours?

As always, Drive Careful,
Will

You can read more about the wording of the "Michigan Sales Tax Increase for Transportation Amendment, Proposal 1" by clicking on this link.

It includes links to organizations and individuals both for and against passing the proposal.


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