Gov. Gretchen Whitmer dismissed efforts in the Michigan legislature to limit the state’s authority to issue bonds without legislative approval Wednesday, telling reporters Republicans are “not going to block” her $3.5 billion plan to fund state roadways.
Legislation approved 22-16 along party lines in the Michigan Senate Wednesday would prevent the Michigan Transportation Commission from borrowing or issuing more than $100 million in bonds per fiscal year without giving state lawmakers at least 30 days’ notice.
As written, Senate Bill 716 would also let the legislature reject any proposed bonding in a 30-day window with a majority vote in both chambers.
It’s the latest move from Republican lawmakers to put parameters around Whitmer’s bonding plan, which was approved by the Michigan Transportation Commission a day after she announced it at her State of the State address.
Bonding is essentially a long-term loan option for the state - officials will get money for road funding in the short term, and pay it back with interest over time. The decision doesn’t require legislative approval.
Shortly after the vote, Whitmer said the commission unanimously approved the bonding plan after recognizing that now was the time to lock in low interest rates and begin to make needed repairs.
“The legislature is just figuring out the scope of executive authority and no surprise, they’re trying to take it away, but that’s not going to happen,” she said. “We’re going to move forward and move some dirt this year.”
In a statement, Sen. Jim Stamas, R-Midland, said bonding should be used as a financing tool, not a long-term road funding plan, and said the governor needs to work with the legislature on a responsible roads plan that improves both local and state roads.
“The Michigan Constitution clearly intends for the Legislature — the voice of the people — to be involved in transportation bonding decisions,” Stamas said. “Michigan families need an affordable solution that fixes the roads and doesn’t saddle them with decades of debt."
Sen. Curtis Hertel, Jr., D-East Lansing, said the Senate bill would give the legislature unrestrained ability to overturn actions taken by the commission without any legislation required, which he called “clearly unconstitutional.”
“Senate Bill 716 is an attempt to circumvent the constitution and give the legislature unrestrained ability to take legislative action using something other than a bill presented to the governor," he said.
The Senate also adopted a concurrent resolution Wednesday outlining their intent not to approve spending for debt service on bonds lasting longer than 10 years or increase spending above current levels. Both the resolution and Senate Bill 716 now head to the House of Representatives for further review.
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