In this episode of the Facts Matter podcast, host Guy Gordon and infrastructure specialist Eric Paul Dennis discuss the recent road funding package passed in Michigan. While the potential for increased funding, if the estimated revenue is achieved, could lead to significant improvements in road conditions, uncertainty about revenue estimates can hinder long-term planning for road agencies. Only 30% of the new road funding revenues are guaranteed.

Guy and Eric explore the implications of the new funding sources, including a marijuana wholesale tax and earmarks for corporate income tax, and the uncertainties surrounding revenue guarantees. These uncertainties are already posing challenges to at least one major local road agency in planning and executing projects. Local road agencies may also face challenges in accessing new funds due to complex criteria, and the distribution of funds may favor certain local agencies over others.

5:18 - graph of Corporate Income Tax revenue FY2012-FY2024

10:52 - graph of State Revenue Sharing, inflation adjusted to road building inflation

13:40 – graph of change in State Revenue Sharing to cities and villages

Their conversation highlights the potential for increased funding while also addressing the complexities and inefficiencies in the current funding system. Ultimately, they call for a comprehensive review of the funding process to ensure that it meets the needs of all communities in Michigan.

"We need to think about this differently."