Transportation FundingThe Transportation Funding Dilemma 

As our region has grown over the years our transportation system has also expanded to meet demand for mobility. We have a highly mobile society that has taken advantage of low costs to own and operate a vehicle. But times have changed. Auto ownership now takes a bigger bite of our family budgets, particularly from higher gasoline prices. The typical reaction from consumers facing these high prices is to drive less or purchase more fuel efficient vehicles. These trends are straining transportation agencies’ abilities to operate and maintain our road and transit systems.

As we drive less, we buy less fuel. And our current method of funding transportation is based on a per-gallon tax on fuel and a registration fee for cars and trucks. These methods, however, do not provide a stable long-term source of revenue that is necessary to deliver efficient transportation services. Without adequate funding safety will be compromised; congestion will increase; user costs in the form of car repairs will increase; and costs to business will increase resulting in putting our region at an economic disadvantage. To stabilize this system we must make our gas taxes work harder, increase revenues from current programs, and develop innovations in raising new revenues. 

A package of transportation bills (HB 4953, HB 4954, and HB 4961-4967) was recently introduced in the Michigan Legislature that addresses the issue of transportation reforms.

Understanding Transportation Funding tip card

 
Background Materials