Although I’ve got to give Michigan Gov. Rick Snyder (R) credit for thinking outside the box, splitting hairs doesn’t change the growing deviation from his own campaign rhetoric. While more subtle than flip-flopping Republican Presidential candidate Mitt Romney, Snyder is still back-pedaling from previous positions. Regarding his proposals for road and transit improvements, the disconnects are more significant than they appear at first glance. As a reminder, here’s candidate Snyder’s view on transportation funding in October 2010:
Asked if he’d support increasing Michigan’s gas tax, given that the state has the nation’s worst-maintained roads, Snyder said no, “because we need to get efficient first” with the state’s existing transportation funds. …
“So let’s get efficient about where we’re deploying these dollars. There’s a much better way to do things, and that’s what we should focus on first.”
First, the Governor wants a revenue-neutral change in the fuel tax. Snyder’s plan eliminates the 19-cent “current gas tax on consumers”, shifting it to a percentage at the wholesale level. Wow! I won’t have to pay state gas tax anymore! Except, does anyone believe wholesalers won’t pass the cost of that tax onto retailers? Is the average retailer likely to discount his pump price by the amount of the wholesale tax passed to him? As the Brits would say, not bloody likely. While this proposal is initially revenue-neutral for the gas tax, a percentage tax on wholesale fuels will go up as prices rise. The proposal includes another hidden tax increase. Michigan levies sales tax, presently 6% on goods sold, including gasoline. Retailers don’t include the current 19-cent gas tax when calculating the sales tax. Since the wholesale tax will be part of the price retailers pay, it will now become subject to the 6% sales tax. On day one of a wholesale tax, Michigan will collect more than a penny per gallon in additional taxes from consumers. So much for “revenue-neutral”; never mind Michigan’s fuel taxes are already among the highest in the country.
Next up, Snyder figures Michigan needs an extra $10 per month from every vehicle registration. Sounds minimal, but that’s $120 per year, on top of what you’re already paying for license tabs. As Stephen Henderson noted, it disproportionately impacts poor people.
It’s a big hit to people’s wallets in a state still struggling to rebound from a decade-long recession. A family with three cars registered to one person would have to fork over $360 extra all at once.
From my perspective, the increased vehicle registration fees are neither logical nor beneficial. Snyder says they will raise about $1.4 billion for roads. They will also price many out of their cars in a state with few functioning transportation options. Don’t be surprised if there is an increase in license plate thefts or cutting their corners off to get someone else’s current year tab. Here’s a novel concept: how about charging heavier weight vehicles for the road damage they cause? A 5,000-pound car exerts a mere 2,500 pounds per axle while Michigan allows up to 17,000 pounds—nearly seven times that of the car—per axle. Financing road repairs also needs to ensure non-resident users pay their share, not just Michiganians. Earlier this year, a bipartisan legislative report said Michigan needs $1.4 billion more for roads each year. Coincidence? I think maybe not.
Snyder also proposed voluntary elimination of county road commissions, folding their responsibilities into general county government. Such a move would save money by eliminating a separate bureaucracy and improve accountability, through county commissioners, to county residents. Since I absolutely abhor my road commission, I’m tempted to support this proposal. The only problem is Snyder wants counties to be able to levy their own $40 vehicle registration fees on top of the state’s. In the 3 car example, the cost now skyrockets to $780, based on a $100 per car average at present, plus the added $120 state and $40 county fees.
Having nothing to do with the state of Michigan’s roads, or fixing them, Snyder also suggested the red herring of so-called “high-speed buses” on key metro Detroit routes. What he means is rapid-transit buses, which often operate in dedicated lanes, but are still subject to speed limits, traffic lights, and road conditions, like standard buses. The concept of dedicated lanes means either removing lanes from availability to motorists or spending money to add sole-use lanes. Personally, I’m not sold on the idea of bus rapid transit, but what concerns me about the Governor’s plan is its creation of yet another transit agency in Southeast Michigan. Say what? Just over a week ago, I posted on metro Detroit’s two dysfunctional bus systems. How is adding another layer going to fix that? How does this fit with Snyder’s push for local governments to consolidate?
- Candidate Snyder said no new gas tax, but even his “revenue neutral” proposal increases taxes consumers would pay on fuel
- Candidate Snyder wanted to eliminate transportation administration/funding inefficiencies, but the Gov. Snyder wants taxpayers to fork over $1.4 billion instead
- Gov. Snyder wants to eliminate Michigan’s extra layer of county road commissions, but will allow counties to charge vehicle registration fees on top of taxes
- Gov. Snyder wants local governments to consolidate services, but he proposes adding another transit agency to those already preexisting in southeast Michigan
Gov. Snyder ran on the claim he was a political outsider. What he’s showing us is the same smoke and mirrors approach used by seasoned politicians.