45-cent gas tax likely too ‘extreme’ to happen, House Dem leader says

Lansing lawmakers in session

Rep. Christine Greig pictured at the Michigan State Capitol in Lansing on Thursday, April 25, 2019.Neil Blake | MLive.com

The 45-cent fuel tax increase proposed by Gov. Gretchen Whitmer as a road funding option isn’t likely to pass as is, House Democratic Leader Christine Grieg said Thursday.

Speaking to reporters Thursday morning, Grieg, D-Farmington Hills, characterized Whitmer’s 45-cent fuel tax proposal as “starting on the edge” and said Republicans are coming to negotiations with “ridiculous ideas," such as bonds for teacher pension obligations.

Asked whether House Democrats would be willing to introduce legislation for a 45-cent increase - or whether they would support it if it was put up on the floor - Greig said they’re waiting for more results from negotiations, but implied lawmakers and the governor still have a long way to go to get to a middle ground.

“I’m not going to do a hypothetical on 45 cents,” she said. “We’ve had a lot of conversation that that’s probably the extreme that won’t happen.”

Later Thursday, Grieg was asked to clarify whether she believed the 45-cent proposal was dead.

“Yeah, I think it is," she said.

House and Senate Republicans have categorically rejected a 45-cent fuel tax increase.

Republican leaders suggested Wednesday they’re looking to address budget and road funding negotiations as two separate issues, telling reporters Gov. Gretchen Whitmer is “holding up the budget process” by insisting on a significant gas tax increase.

Senate Majority Leader Mike Shirkey, R-Clark Lake, said his caucus will “pivot now to work on both budget and roads” after Whitmer rejected four different proposals he and House Speaker Lee Chatfield, R-Levering, offered up during closed-door meetings.

Chatfield said Whitmer’s insistence on a 45-cent gas tax increase is the main point of contention in ongoing budget negotiations.

“She is holding the budget process hostage because of our unwillingness to tax every driver in the state,” he said.

Greig and other House Democrats put forward an alternative road plan in June, suggesting a corporate income tax hike and additional taxes and tolls on heavy trucks as a possible solution for fixing the roads. It was criticized by many House Republicans and business groups.

Greig said a variety of options need to be on the table to get to the $2.5 billion per year Whitmer and other experts say is needed to adequately address road funding issues in Michigan.

She said her goal remains to come to a consensus on roads and the budget before the end of the fiscal year Sept. 30, and said not to do so would be “shirking our responsibility.” She said Republicans should start publicly discussing their road funding plans “so we can have some discussion out in the public as well.”

“We are behind the eight ball, and now it’s all full gear and making sure we’re having these conversations and come up with a solution,” she said.

On Wednesday, Whitmer said Republicans should “stop screwing around” on the budget during a press conference updating the media on budget negotiations.

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