Governor Gretchen Whitmer delivered her second-to-last State of the State address and she urged Michiganders toward unity and togetherness. This week on MichMash, host Cheyna Roth and Gongwer News Service’s Alethia Kasben discuss the major elements of her speech and what stood out the most. Plus, Denise Donohue from the Michigan County Road Association joins the show to discuss potential road funding measures.

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In this episode:

• Gov. Whitmer’s penultimate State of the State Address
• How critical is road funding?

Whitmer’s speech was filled with calls for unity and bipartisanship. Will these calls be answered by the Democratic-controlled Senate and the Republican-controlled House in Lansing?

“We saw the Legislature strike a deal last week — a significant deal on minimum wage and paid sick time,” said Kasben. “So at this point, I would say anything is possible.”  

Other elements of Whitmer’s State of the State dealt with lowering costs, especially when it comes to housing, getting more men to sign up for post-high school education, and more.

In regard to road funding, Donohue told MichMash that this is the year that road funding should be substantially planned because there is a lot of focus on it.

“We talk about a rising tide of funding lifts all boats; [for] municipalities, counties and the state department of transportation. So for us, it’s been critical that we find new road funding for a while,” she said.

Donohue added that according to Senate Fiscal Agency figures, fewer gallons of gas were sold in Michigan than any time in the last 25 years (with an exception for COVID periods). With a portion of taxes from gas being given to road funding, that decrease hurts road funding as well.  

More from WDET:

• Whitmer asks for bipartisan cooperation, positivity in State of the State speech
• Federal money coming to three Michigan cities for safer, greener roads
• MichMash: Breaking down Governor Whitmer’s $83.5 billion budget proposal

Gov. Gretchen Whitmer released a road-and-transportation funding proposal Monday that includes a new tax on marijuana products, more revenue from a business tax aimed at big-tech companies, and unspecified budget cuts.

The Democratic governor says it’s a long-term plan to raise $3 billion annually for roads, bridges and public transit.

“Today, I’m excited to introduce my brand-new plan that provides a long-term, sustainable solution to fix our roads so we can help more Michiganders stay safe on the road, save money, and get where they’re going faster,” said Whitmer in a statement released by her office. “My plan is fiscally responsible and balanced, with both new revenue and cuts so we can lower costs for families.”

The proposal is not specific on many details, but Whitmer aides say the goal is to set some broad outlines to bring to the bargaining table as Republicans take aim at state spending in general and specifically at taxpayer-funded business incentives. House Republicans have rolled out a competing transportation proposal.

“Michigan families expect results — that’s why our plan focuses on real solutions, including prioritizing funding roads over funding corporate earmarks, making the most out of our current budget instead of raising new taxes, and fixing local roads first,” Hall said in a statement. “Roads and infrastructure are essential, and we must get this right.”

There are a couple of commonalties in the Whitmer and GOP plans — they seem to agree that the revenue target is an additional $3 billion annually for roads and infrastructure. They also seem to agree that the 6% Michigan sales taxes on fuel purchases should go to infrastructure.

“We’re excited that there actually is a plan,” said Rob Coppersmith with the Michigan Infrastructure and Transportation Association, a construction industry organization. “So, we are excited that the issue is even being talked about and discussed and that people understand the importance of properly funding our infrastructure.”

Whitmer aides say Michigan’s current road funding design does not match the realities of modern economics, including marketing and retail services that have moved online.

“That’s why the governor introduced this plan today for a sustainable road funding solution that reflects our current needs, lowers costs for commuters and makes the companies that use the roads the most pay their fair share,” said Zachary Kolodin, Whitmer’s Chief Infrastructure Officer. “This plan will make big-tech industries like Amazon or X or Tik-Tok led by the nation’s wealthiest individuals pay their fair share to do business in Michigan and use Michigan’s roadways.”

While Republicans are not sold on the plan, some GOP lawmakers say they see room to bargain.

“One part of the plan is kind of tax neutral,” said Rep. Donni Steele (R-Orion), who chairs the House Appropriations Subcommittee on State and Local Transportation. “That one part I think we can agree on. But the raising of the taxes is something that I think we won’t agree on. I think there’s enough room in the budget to fund the roads without raising taxes.”

Michigan aims to set up a public network of 100,000 electric vehicle charges by 2030 to support an anticipated two million EVs on local roads. Millions of dollars’ worth of investments have entered the state in recent years to support that vision.

A report put together by some of Michigan’s trade organizations offers guidance on making it a reality. The so-called “Transportation Electrification Roadmap” includes policy and spending recommendations.

Listen: Policy experts discuss Michigan’s EV roadmap

Chase Attanasio, a policy analyst at Clean Fuels Michigan, says one suggestion is to establish a clean fuel market in the state.

“We’ve seen in California, a clean fuel standard has created a market for clean fuels that surpasses $2.8 billion in the first three years of the program,” Attanasio said.

Michigan Energy Innovation Business Council Policy Principle Sophia Schuster says building out an electric vehicles network represents a chance to improve state power infrastructure as a whole.

“We have the chance to look at electric vehicles and the charging infrastructure that support them as a solution to supporting a healthier grid,” she said.

Schuster added that Michigan’s power grid currently ranks among the worst in the country when it comes to reliability.