Gov. Whitmer proposes $250M for public transit; new long-term road funding options

On Monday Gov. Gretchen Whitmer released a new proposal for road funding that shows promise for critical investments into Michigan’s transit infrastructure. 

The proposal calls for the generation of $3 billion in new long-term spending for roads, which would come from several new sources, including replacing the six percent sales tax on fuel with a revenue-neutral fuel tax increase; identifying $500 million in spending cuts in the State Budget; adding a new wholesale tax on marijuana; and selecting from a menu of revenue generation options, such as an increase to the state’s six percent Corporate Income Tax.

The proposal also included $250 million for public transit, a critical piece if we hope to not only get people to the places they need to go, but also retain and attract new residents, expand Michigan’s workforce and promote economic development. As transit funding is hitting its lowest point in modern history, these challenges only become more acute.  

“We were encouraged to see that the Governor’s transportation funding proposal included a $250 million net increase for public transit,” said Ross Gavin, urban infrastructure and transportation policy director for the Michigan Environmental Council. “These essential transit services allow residents to get to work, to the grocery store, to the doctor’s office, and to school, among other necessities of daily life. We look forward to the continued negotiations around transportation funding, including what the proposed $500 million cuts entail, as we look to make Michigan a leader in public transportation.”

Simply put, if we want to be a place where families can plant their roots, we need a well-balanced transportation system to support the modern travel needs of Michiganders. One that supports multi-modal transit like buses, trains, senior shuttles, ferries and bikes, and that prioritizes a “fix it first” approach to reconstruction where we aren’t adding new lane miles until we fix the ones we already have. 

The Governor’s proposal takes a step in the right direction with a substantial transit investment. While much of the proposal still places an emphasis on “roads” rather than our transit system as a whole, we remain hopeful that the process will yield a good balance between improving our roadways, and investing in more walkable, bikeable, accessible communities.

As the Governor and Michigan legislature enter into budget negotiations, we will continue to monitor transportation funding conversations and advocate for a sustainable, affordable transportation system.