Whitmer rolls out $3B road funding plan, eyeing more cash from marijuana, companies
GRAND RAPIDS, Mich. (WOOD) — Gov. Gretchen Whitmer on Monday released her plan to devote $3 billion for Michigan's roads.
The proposal called for ensuring that every dollar from the gas tax goes to roads, but also for taxing marijuana wholesale and drawing in more money from big companies to create new revenue.
A release from Whitmer's office touted the Mi Road Ahead Plan as 'fiscally responsible, balanced, and sustainable,' saying that local communities 'still need a long-term solution.'
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A total of $1.2 billion of the $3 billion would be collected at the gas pump, the governor's office said. It said that right now, 25% of the taxes paid on gas are sent somewhere else than roads. Under the Mi Road Ahead Plan, 'every penny drivers pay at the pump goes toward Michigan infrastructure,' the release said.
Whitmer's plan would also target 'Big Tech industries,' with the release arguing their heavy semi-trucks disproportionately deteriorate roads and bridges. The Mi Road Ahead Plan would 'make sure that corporations pay their fair share to do business in Michigan.' This, Whitmer projects, would raise $1.7 billion in additional revenue, though does not say specifically how.
The plan would also aim to 'cut red tape' and implement 'fiscally responsible cuts,' saving $500 million for road and bridge repairs. The release does not describe exactly what those cuts would be.
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Under the Mi Road Ahead Plan, marijuana sales would be taxed wholesale, the same way cigarettes are. Currently, Michigan's taxes on marijuana are the fourth lowest in the country, according to the release. Whitmer's office says the marijuana industry also uses the roads to move product several times during production. Whitmer expected another $470 million revenue from the wholesale taxes.
The Grand Rapids Area Chamber of Commerce criticized the plan, expecting it would raise business taxes. Though Whitmer's plan did not spell out specifics, the Chamber is expecting the Corporate Income Tax would be raised from 6% to 8%. If that is part of the plan, the Chamber says it would put Michigan at a 'competitive disadvantage' compared to other states.
'Michigan's CIT is already higher than half of the country and 16 states have cut their rates since 2018,' the Chamber wrote in a release Monday.
'We support finding a sustainable source of revenue to fund Michigan Roads but are concerned with the burden being placed on Michigan business and the additional inflationary pressure it will have on costs,' wrote Joshua Lunger, vice president of the government affairs for the Chamber.
Michigan Rep. Ann Bollin, R-Brighton Township, said she believes Michigan already has enough existing revenue to fix the roads. She said the problem is allocation of funds.
Bridges across Michigan in need of critical funding, report says
'Since 2018, state government spending has ballooned by nearly $30 billion — a more than 40% increase. And none of that was put toward additional funding for local roads. The problem isn't revenue, it's priorities. The money is there. We don't need higher taxes to fix our roads. We need leadership that respects taxpayers, spends responsibly, and makes roads a priority,' Bollin wrote in a statement Monday.
Right now, Whitmer's plan is just a proposal. At least parts of it would need to go through the Republican-controlled Michigan House and Democratic-controlled Senate before they could actually go into effect.
Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
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