Michigan House approves new road-funding plan, but odds of final passage are doubtful

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By: David Eggert/Associated Press

LANSING, Mich. (AP) — The Michigan House for the second time in four months has narrowly approved a funding plan to improve deteriorating roads. But it appears doubtful that the legislation currently has enough support to become law.

The Republican-controlled chamber late Wednesday passed a 3.3-cent gasoline tax hike and 40 percent vehicle registration fee increase. It also authorized a transfer of money to roads from elsewhere in the state budget.

For some, higher fuel taxes would be offset with an expanded tax credit included in the plan. Many could also see future income tax cuts.

The party-line votes came about a week after talks broke down between Gov. Rick Snyder and legislative leaders. House Republicans say their latest plan is a “grand compromise,” while Snyder says he has “some concerns” and Democrats call it an “embarrassment.”

The Senate will dig into the proposal next week.

Gov. Rick Snyder has expressed concerns with the bills approved late Wednesday.

Democrats say the new plan shifts too much in general funds to roads, and they worry future income tax cuts would be fiscally irresponsible.

Republicans say it makes sense to cut the rate when revenues outpace inflation.