Michigan Gas Tax Hike Could Provide Some Relief for Detroit Transit Riders

Michigan state senators voted last week to approve a gas tax hike expected to net more than $1 billion annually to fix the state’s notoriously potholed roads, reports the Free Press. The measure, if it passes the House intact, could also be good news for Detroit’s woefully inadequate transit system.

A provision of the bill would allow Detroit to spend 20 percent of its portion of the proceeds on transit. Detroit has been funding transit only through its general fund — with no dedicated revenue stream — and it has arguably the worst transit system of any major city in the nation. With the city in bankruptcy, general fund revenues for transit have been in short supply. Riders report two-and-a-half-hour one-way commutes, or buses that never show, making it nearly impossible to hold down a job without a car.

Although the region is in the process of merging Detroit’s transit system with SMART, the suburban transit provider, establishing a seamless system has been fraught with political challenges. Regional planners, for instance, recently shifted millions of dollars in transit funding from Detroit to the suburbs. A new funding source would be huge.

Under the plan approved by the State Senate, Michigan’s gas tax would incrementally rise 17 cents per gallon over the next few years. Raising the tax to fix the state’s roads has been a top priority of Governor Rick Snyder, and Republican lawmakers apparently felt comfortable advancing it following the election.

ALSO ON STREETSBLOG

Actually, Highway Builders, Roads Don’t Pay For Themselves

|
You’ve heard it a thousand times from the highway lobby: Roads pay for themselves through “user fees” — a.k.a. gas taxes and tolls — whereas transit is a drain on the taxpayer. They use this argument to push for new roads, instead of transit, as fiscally prudent investments. The myth of the self-financed road meets […]