Holland Reporter

The four Upper Peninsula representatives and State Senator Ed McBroom have announced the details of a new state budget and road funding agreement reached by the Michigan Legislature and governor. The final deal was made after a one-week extension to the original deadline.

“This has been a very dynamic and challenging budget,” said Rep. Dave Prestin, R-Cedar River. “The House and governor were determined to get real funding for roads. The House believed it could be done without increasing taxes, but by stripping government waste. Our efforts showed it was possible by fighting ghost employees, department slush funds, empty buildings and tightening general spending.”

Over several months, the House presented a reduced budget alongside a road funding plan. In September, the Senate agreed to consider both together if some revenue increases were included with fewer cuts. The final plan lowers state spending from $84 billion to $80 billion while raising road funding by about $2 billion—marking the first year-over-year spending reduction since 2011.

“It is remarkable how a long, deep inspection of the state’s spending showed us just why the budget has ballooned from under $40 billion to over $80 billion in just 15 years,” said Rep. Greg Markkanen, R-Hancock, chairman of the House Appropriations Subcommittee on Higher Education and Community Colleges. “Departments had funds for thousands of employees who were never hired and leases for buildings no one uses. It was time to hold them accountable and use the tax dollars for road funding.”

The increased road funding comes from savings found through these reforms, higher marijuana tax revenues, slower corporate tax reductions, and changes at gas pumps so more taxes go directly to roads.

“People believe the taxes at the pump should go to roads,” said Rep. Karl Bohnak, R-Marquette. “This generational change should have been done 50 years ago. This plan also increases available funds for our cities and our counties rather than directing them all to the state. Additionally, it dramatically increases funding for our bridges, which is desperately needed.”

Other aspects important in the Upper Peninsula include continued school meal programs; increased support for local transit; more per-pupil school funding; dedicated rural transportation money; community arts grants; removal of taxes on tips, Social Security benefits and overtime pay; but no increase in hunting or fishing license fees.

“Getting serious about road funding and cuts to wasteful spending made crafting this budget look historically different from past years,” said Rep. Parker Fairbairn, R-Harbor Springs. “Despite that, the U.P. Team was successful in obtaining or restoring some key funding, such as reconstruction from the huge spring ice storm and record per-student funding for our schools.”

Legislative fiscal experts warn that next year will bring financial challenges statewide due to static or reduced support for many local governments as budgets tighten further.

“Various parts of our government, state and local, are having to make do with less in order to see roads be taken seriously,” said McBroom, R-Waucedah Township. “Better road funding, especially to our local road agencies, will hopefully help alleviate some of that pressure by reducing what local governments and residents have to spend out of their own budgets for road and vehicle repairs.”

Although there is less room this year for legislators’ directed spending on local projects due to broader cuts elsewhere in government operations—and despite losing $50 million intended for infrastructure improvements in Gogebic County—the delegation secured targeted support: Menominee Public Schools receive nearly $5 million for flood/asbestos repairs; Mid Peninsula schools get $245K toward HVAC work; Ishpeming receives nearly $1 million toward replacing its fire truck; Marquette County gets $3 million toward industrial site upgrades at Sawyer; Mackinac County receives part of a shared $10 million allocation following ice storm damages.

“This is the toughest and most thorough budget effort I have ever seen in Lansing,” McBroom said. “While it required letting many of the local projects legislators can obtain to help their communities go and getting a handle on road funding, eliminating so much state wasteful spending and planning for future constraints took determination and discipline.”

Markkanen noted disappointment over losing infrastructure funds meant as matching dollars with Highland Copper but remains optimistic about securing those resources soon: “The intensity of the budget process allowed us so many opportunities to discuss this key project with our colleagues and executive branch... Support is increasing... we are closer than ever…”

With budgeting finished lawmakers now focus on other priorities such as reallocating unspent disaster aid in Baraga County or transferring unused birthing center dollars between health systems—and advancing energy reform bills sponsored by Bohnak/Prestin aimed at preventing sharp electricity cost hikes affecting industry across northern Michigan.

“Getting the budget done this week means our fall mission to get these critical bills done for the U.P. can have all of our attention,” said Bohnak and Prestin.“Our mines and forest industries... face certain massive increases in electrical bills if we do not get this reform… Our U.P.future depends on this success.”