Road funding agreement tied to ballot measure to raise sales tax

LANSING — Governor Rick Snyder and legislative leaders have reached an agreement on $1.2 billion in new funding for Michigan roads and bridges.

As part of the agreement, Michigan voters will be asked to raise the state sales tax from 6% to 7%. The referendum would be decided at the polls next May.

The ballot proposal would also get rid of the sales tax on fuel, and it would ensure that money from the School Aid Fund is used for K-12 districts and community colleges, not universities.

There are also many other proposals related to road funding in the agreement that will only take effect if the ballot measure passes.

Today is the final scheduled work day of the year for state lawmakers. The House and Senate are expected to vote sometime tonight on whether or not the ballot measure will go to voters.