LANSING (WKZO-AM) — The Michigan House has approved what some are calling “Plan R” to fix the state’s crumbling infrastructure, but Democrats say it will eventually bring the rest of the state down with it if the Senate and Governor go along.
One opponent calls it a mini “Proposal One.”
In a series of close and unusual last-minute late-night votes, the House approved a plan that will combine $600 million in new revenue from higher gas and diesel taxes and a 40 pernent increase in registration fees, with $600 million carved out of the general fund.
“Our approach is a healthy compromise which allows the state to put this issue in the rearview mirror,” Brandt Iden, R-Oshtemo, said Wednesday.
Jon Hoadley, D-Kalamazoo, said it will haunt the state for years, if not decades. He said he’s having trouble getting a straight answer as to whether the $800 million will be carved out of police, higher education or corrections.
It will be phased in, so most of it won’t take effect until after Gov. Rick Snyder and most of the current leadership in the legislature have left office in 2021.
After railing for months that the public wanted a clean bill with no attachments after the defeat of Proposal One, this Republican plan has been loaded up with attachments too.
It includes an increase in the Homestead Property Tax Credit but also includes a controversial plan that would reduce the income tax anytime state income exceeds inflation, but not increase it when it does not. Opponents call that a ticking time bomb that could eventually strangle state operations.
Republicans say the public is demanding action, and here is plan that includes just about everything everyone wanted.
The Democrats are saying you can’t spend $1.2 billion while cutting the revenue the state relies on to pay its bills and support essential services.
It’s all happened so fast that the Governor and the Senate have not had a chance to read the proposal and respond, but Senate Majority Leader Arlen Meekof said he looks forward to discussing it in the GOP Senate Caucus and with the Governor.
– John McNeill
