(WXYZ) — A new study from the Citizens Research Council of Michigan has identified significant concerns about the state's road funding structure, finding that nearly three-quarters of the money allocated to fix Michigan's roads is not guaranteed long-term.
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The Livonia-based research group's analysis comes just months after state lawmakers enacted a $1 billion transportation funding package in October, which utilizes a fuel tax shift, a new marijuana wholesale tax, and other revenue sources.
"There are some local agencies that are drastically underfunded and probably will still be underfunded," said Eric Paul Dennis, a research associate for transportation policy at the Citizens Research Council of Michigan.
Dennis credited lawmakers for making historic moves to increase funding, but expressed concern about outdated funding distribution formulas that affect the Michigan Department of Transportation and county road commissions.
During a press conference, researchers highlighted several issues with the current funding structure, including extreme uncertainty about revenue from the marijuana wholesale tax and the impact of inflation on construction costs.
"There's extreme uncertainty about revenue that will be available through marijuana wholesale tax," Dennis said. "The inflation adjustment is important to consider because construction costs tend to increase faster than most things."
The study points to legal challenges facing the marijuana tax increase and other concerns that could impact the reliability of funding streams.
State lawmakers from both parties offered different perspectives on the findings. Sen. Joe Bellino, a Monroe Republican, acknowledged potential shortfalls from the beginning.
"When you raise the tax by 24% and in my district we have 1,000 workers in the marijuana industry and get all of that out of state business, we are going to start losing a lot of that business," Bellino said.
Rep. Jason Morgan, an Ann Arbor Democrat, defended the funding package despite acknowledging its imperfections.
"I'm thrilled with the plan we passed. No plan is perfect," Morgan said. "This is still a huge step forward that'll make a big impact across the state."
Morgan emphasized the importance of funding neighborhood streets that have been "left behind in conversations for several years and decades."
The study also suggests changing the current funding formula, which allocates nearly 40% of funds to MDOT, nearly 40% to county road commissions, and just over 20% to cities and villages.
Drivers across metro Detroit expressed mixed feelings about road funding and construction projects.
"They do need to spend more money on the roads," one driver said.
Another driver, Tatiana Matthews, said funding levels might be adequate but questioned implementation: "I think it's enough, but not getting done properly. Everything shouldn't be closed down at once."
Onyx Thomas emphasized the importance of transparency in how funds are applied: "I think people would feel a little bit more assurance if it was being applied where they said."
The October 7 transportation funding package represents a significant investment in Michigan's infrastructure, but the new study raises questions about the long-term sustainability and effectiveness of the funding mechanisms.
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