Michigan lawmakers prepare to give Mackinac Island more oversight on ferry fares
A process has begun to place greater oversight of ferry costs to Mackinac Island within the Michigan city council's authority.
While the bill has been moving through the legislative process for almost a year, it includes a clause that requires a majority of voters in Mackinac Island to approve the ferry authority rules before they take effect.
Senate Bill 304 intends to allow local officials to "authorize, license and regulate all aspects of ferry service to and from the city," including "to regulate and prescribe all charges and prices for or connection with" the ferry service.
Mackinac Island's city charter is unique in the state in that all changes to those rules must go through the Michigan Legislature, according to the bill analysis.
Mackinac Island is one of Michigan's most popular tourist destinations, known for its car-free atmosphere and historical buildings. Most of the island is considered part of Mackinac Island State Park. About 1 million people visit the island each year, and about 500 people live on the island year-round, the Mackinac Island Tourism Bureau says.
Ferry services are among the transportation services to the island. Until about 10 years ago, visitors and residents could choose among three ferry services to reach Mackinac Island. There are now only two ferry companies serving the island, and "some people believe that there is no competition between them because of the parent company's mutual ownership," the Senate bill's analysis report says.
The current ferry services are Shepler's Ferry and Arnold Transit Company.
The Mackinac Island city charter allows the city to regulate the fee that ferry companies charge for transportation; "however, there is less agreement concerning whether the provision allows for the regulation of other ancillary fees," the analysis says.
After Mackinac Island city officials denied a request from both companies for a $2 ferry fare increase, state officials said, the companies responded by increasing ancillary fees such as parking, baggage and bicycle transport.
Testimony during legislative hearings in Lansing explained that the combined impact raised the minimum cost of going to the island from a typical $34 per person to $51 per person. This affects both visitors and residents.
One of the arguments supporting the bill is that such a process could keep the ferry costs more affordable, the bill analysis said.
One of the arguments opposing the bill is that it would give Mackinac Island "undue authority" in a matter that also affects the mainland communities of Mackinaw City and St. Ignace.
The bill passed the Senate in July 2025; then it was referred to the House, where it passed on Thursday. The bill has been returned to the Senate. It has not yet been signed by Gov. Gretchen Whitmer.
The above video originally aired on June 13, 2025.
