The Detroit News: Use the surplus for roads
Gov. Rick Snyder and lawmakers have to decide what to do with an unexpected $483 million windfall from higher-than-expected tax collections. There are a lot of ideas for spending the surplus, but most would commit the state to expanding government programs that would have to be cut back if revenue slows.
Two ideas for the money are the most sound.
The first would be to stick the bonus cash into the rainy day fund, which now stands at about $505 million. Historically, that’s not a huge buffer. In 2000, the fund held $1.2 billion.
A healthy rainy day fund pleases the bond rating services, meaning Michigan gets a better interest rate on its debt and saves money on payments. Snyder has been steadily growing the buffer, and is smart to do so.
But the governor also favors using this year’s windfall to meet an urgent need — repairing roads and bridges.
For the past decade and longer Michigan’s road repairs have been underfunded and the condition of the infrastructure is now dire. In fact, it’s so bad that a Legislature-funded study concluded Michigan must spend an added $1.6 billion a year to keep up with deterioration.
A number of proposals from the governor to find a sustainable funding source to fix Michigan roads has met with strong opposition from lawmakers, including those in his own party.
Lawmakers have no appetite for raising the fuel tax, car registration fee or sales tax to pay for repairs.
So another summer is at risk of passing without the all-out push to fix the infrastructure.
Using this year’s surplus to at least do part of the needed work is a stop-gap measure, but it buys time to come up with a permanent solution.
And it has the added benefit of using the surplus in a way that will create additional jobs in Michigan.
It’s not a perfect answer, and is certainly no substitute for the sacrifice that will be necessary to erase years of neglect of our roads and bridges.
But it is much better than doing nothing.
From The Detroit News: http://www.detroitnews.com/article/20130520/OPINION01/305200316#ixzz2TqH9k300
