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Bulletins, News, and Press: Legislative Bulletins

Transportation Rescue Plan Press Conferences Held: Legislative Action on the Horizon

Tuesday, November 11, 2008   (0 Comments)
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Click here for a PDF of the TF2 report.
Click here for a link to MITA’s TF2 press conference press release.
Click here to download a PDF of the news stories that were generated by MITA after the press conference.

On Monday the state’s Transportation Funding Task Force  (TF2) released its formal report on Michigan’s transportation needs to the Michigan Legislature.  Mike Nystrom, MITA’s Vice President of Government and Public Relations, is a part of the 13-member task force and spoke about the report at well-attended press conferences across the state.

According to the report, Michigan needs to at least double its current investment in transportation to prevent a loss of up to $1 billion in federal funds each year and to adequately maintain Michigan’s highways, roads, bridges, transit and aviation systems.

The TF2, a non-partisan group appointed by the governor and legislature under Public Act 221 of 2007, looked at more than 100 different ways to raise revenue for transportation. MITA will continue to lobby vigorously for legislative action regarding these options during the remaining months of 2008. If you have questions, please contact Mike Nystrom by calling 517-347-8336 or e-mail him at

The following is a list of the primary options that are being considered by the Legislature at this time.
Immediate Actions

• Increase vehicle registration rates
• Eliminate registration discounts
• Adjust motor fuel tax
• Equalize diesel and gasoline fuel tax rates
• Abolish 1.5 percent “cost of collection” allowance
• Increase aviation fuel tax
• Increase aircraft registration fee
• Abolish commercial airline refund

Short Term Options

• Reduce Inter-Departmental Grants
• Urge increase in federal aviation block grant
• Redirect sales tax on aviation products to State  Aeronautics Fund
• Change aviation fuel tax to a percent of price
• Encourage local investment with a broad spectrum of local  revenue options
• Public-Private Partnerships
• Toll-financed reconstruction, expansion, new construction of freeways

Longer Term Options

• Increase sales tax and dedicate increase to transportation funding
• Direct all or a portion of sales tax on fuels to the Michigan Transportation Fund
• Direct some (or all) of Natural Resources Trust Fund Revenue to roads
• Make reliever/super-reliever airports eligible for federal primary airport funds

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