Live Updates: Proposal One Defeated

UPDATE: It’s back to the drawing board for lawmakers in Lansing. Voters voices were heard loud and clear today at the polls.

Proposal One was overwhelmingly defeated. The proposal, if passed, would have increased Michigan’s sales tax from 6% to 7%. The gas tax would have also increased under the defeated proposal. Governor Rick Snyder released a statement tonight about the proposal being shot down by voters.

“It’s essential that making Michigan’s infrastructure safer remains a top priority,” said Snyder. “While voters didn’t support this particular proposal, we know they want action taken to maintain and improve our roads and bridges. The ‘relentless’ part of relentless positive action means that we start anew to find a comprehensive, long-term solution to this problem. Doing nothing isn’t an option as the costs are too great. Michiganders need to be able to get behind the wheel and not worry about dodging potholes or seeing plywood to catch crumbling concrete under overpasses. We appreciate that this bipartisan plan was supported by so many groups – business leaders and unions, public safety officials and local governments, teachers, and the list goes on. I plan to work with my partners in the Legislature on a solution that gives Michigan residents the safe roads they need and deserve and bolsters our growing economy.”

Governor Snyder added that he plans on working with the Legislature on a solution to fix Michigan’s roads. We will have much more on Proposal One being defeated tomorrow at 5:30 on ABC 10 News Now.

ISHPEMING — From Ishpeming to Ironwood, Marquette to Manistique, and Skandia to Sault Ste. Marie, Upper Peninsula roads are not in the best shape. But, this is not just a U.P. issue – roads across the state need to be fixed.

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Proponents of Proposal One say that this ballot measure will fix the roads, while opponents of Proposal One say it’s another example of wasteful spending.

Before you go to the polls tomorrow, here’s a look at Proposal One. It’s a decision that only the people of the state of Michigan can make.

If Proposal One passes, it would raise the sales tax in Michigan from 6% to 7%. Money generated from the sales tax increase would go towards schools and cities, but none of that money would be put towards road funding.

“The way we tax fuel is unlike any state surrounding us. Too much of our tax on fuel goes to fund education and local government. The money raised from fuel taxes should go to roads and that’s what this proposal does, it separates those,” said Representative John Kivela, of Marquette.

“Part of the problem we’ve got right now is people want to spend money where we say it needs to go and right now the gas tax is split. Part of it, we can’t legislatively deal with it because of the sales tax. So, we have to remove the sales tax and then we can put all of the road funding through the road formula and put it where it’s supposed to go,” added Senator Tom Casperson of Escanaba.

Fixing’s Michigan’s roads has been no easy process. According to state representative Ed McBroom, a lot of the discussion in year’s past on how to fix the roads always comes back to how gas is taxed.

“That creates a problem then for the communities and schools that also get money, right now, at the pump. And therefore, we have the sales tax proposal in order to make sure that the schools and local communities are held whole,” said Representative Ed McBroom of Vulcan.

If proposal one passes, the new gas tax in the state of Michigan will result in higher fuel taxes at the pump.
That tax would adjust based on inflation.

So if Proposal One passes, a higher sales tax and a reconfigured gas tax would result in the redistribution of money for road, schools, and government funding.