LaVoy Opposes Ineffective Road Funding Plan

Plan steals money from local government and schools to pay for roads
Friday, December 5, 2014

LANSING — State Representative Bill LaVoy (D-Monroe) stands ready to support critical road funding for Michigan’s crumbling infrastructure, but not at the expense of local governments and schools. Yesterday, House Republicans brought a road funding plan to the floor that would repeal the 6 percent sales tax on gasoline and replace it with a wholesale tax. The removal of sales tax, which is currently allocated to schools and local governments, would result in massive cuts to the School Aid Fund and to local governments.

“I have toured my district, and spoken with many of my constituents about this very issue. They have all told me, again and again, fix the roads,” LaVoy said. “I want to do that, but not a single one of them has told me that they would support education and local government cuts to get it done. That’s something that no one wants.”

The proposed plan would shift about $1 billion a year to road funding, according to House Republicans. A nonpartisan analysis from the House Fiscal Agency shows that losses to school funding could grow to more than $850 million annually as the proposed law is phased in. The analysis also shows that Michigan’s local governments could stand to lose as much as $120 million annually as well.

“I came to Lansing to support local governments and schools,” LaVoy said. “Our local governments and schools provide critical services in our communities, we can’t just keep cutting their funding. There are other options for fixing roads that I could support.”