Road work in downtown Flint in August 2019. (Susan J. Demas photo)

A plan to provide more than $3.1 billion in road funding was rolled out Thursday by Michigan House Speaker Matt Hall, R-Richland Township, who says it can be done without raising taxes.

The plan is similar to a $2.7 billion proposal he introduced during the lame duck session in November, with the addition of nearly $500 million gained through the elimination of older tax breaks authorized under the Michigan Economic Growth Authority.

Created in 1995 during the Gov. John Engler administration, the MEGA program was abolished in 2012 by Republican Gov. Rick Snyder, with its responsibilities transferred to the Michigan Strategic Fund.

“Ensuring value for taxpayer dollars is important to the people we represent, and our priorities reflect that by targeting inefficiencies and waste,” said Hall in a press release. “Roads and infrastructure are top priorities, and our budget choices should reflect that. We are committed to restoring trust in government through smart, transparent reforms that prioritize the well-being of every citizen.”

According to the release, the plan removes the sales tax on gas and replaces it with “a revenue-neutral motor fuel tax, which goes entirely to roads. Drivers will see no difference, but roads will receive more repair funds.”

Because K-12 school funding in Michigan is partially funded through gas taxes, Hall says $700 million from permanently dedicated sales tax revenue will be redirected to the education budget.

The speaker also says the plan includes “zero new taxes” and no new bonds that would increase the state’s long-term debt.

Hall’s plan comes a day after Democratic Gov. Gretchen Whitmer made her “Road Ahead Address” at the Detroit Auto Show, in which she pledged to work with anyone to find a solution to road funding, and called on the Legislature to “set aside their differences and negotiate a bipartisan roads deal in 2025.”

Whitmer’s comments were noted by Rob Coppersmith, executive vice president of the Michigan Infrastructure & Transportation Association, a trade group representing Michigan companies involved in road and bridge construction.

While praising Hall as “leading the way in the Capitol” with a plan to help fund and fix Michigan’s roads, which he said have been underfunded for decades, Coppersmith said cooperation would be key to crafting solutions.

“The progress we’ve made in recent years from the governor’s bonding plan and the boost in federal infrastructure funds will be lost if Michigan’s leaders fail to act soon,” he said. “If we fail to act on funding and fixing Michigan’s roads now, we will go backward. After all, this is a quality-of-life issue. Do we want safe and reliable infrastructure to get to work, school, and vacation? Or do we want our roads and bridges to continue to deteriorate?”

Brad Williams, a lobbyist for the Detroit Regional Chamber, also praised Hall’s plan, but said more was needed.

“Roads and infrastructure are critical components of a thriving economy, and Michigan lacks sustainable funding for the state’s roads. Road users should be responsible for its maintenance, and the Chamber applauds Speaker Matt Hall’s plan to direct all fuel tax revenue towards roads,” said Williams. “To make Michigan competitive, we need an ‘And’ solution that supports the companies that have been supporting Michigan families for decades and attracts and grows those who will employ future Michiganders. Even though this plan falls short of that goal, the Chamber and our business members look forward to working with Hall, along with Gov. Gretchen Whitmer and Senate Majority Leader Winnie Brinks, toward crafting a solution that allows Michigan to thrive.”

The major component of Hall’s updated plan, which would total $3.145 billion for dedicated road funding, would be to $2.2 billion in dedicated Corporate Income Tax funding composed of the following:

— $500 million from eliminating outdated MEGA credits.

— $500 million from preventing legislative earmarks, based on average annual spending levels of nearly $600 million.

— $600 million in ongoing general funds from higher than expected tax returns after the state’s revenue estimating conference last week.

— $500 million that had been set aside for automatic deposits into the Strategic Outreach and Attraction Reserve (SOAR) fund. Hall says Future SOAR deposits will have to be approved by the Legislature on the merits and on a case-by-case basis.

— $50 million that had been set aside for automatic deposits into a corporate placemaking (RAP) fund that are set to expire.

— $50 million that had been set aside for automatic deposits into a community development fund (HCDF) that are set to expire.

The remaining $945 million would come from permanently dedicating all taxes paid at the pump to road funding.

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