Michigan Senate Panel OKs 15-Cent Gas Tax Hike For Roads

By DAVID EGGERT
Associated Press

LANSING, Mich. (AP) - A Michigan Senate committee has approved a $1.4 billion road-funding plan that would raise the state gasoline tax by 15 cents a gallon over three years.

The legislation approved by Republicans along party lines would trim the income tax if Michigan's general revenues rise above inflation in any given year.

The proposal also would redirect $700 million in general funds toward road and bridge infrastructure, though specific spending cuts would be left until later. Another bill would eliminate a tax credit for lower-wage earners.

The full Senate could vote on the plan Wednesday, three weeks after the House passed a different proposal.

Voters in May resoundingly defeated a proposed sales tax hike that would have triggered more funding for roads, schools and municipalities.