The Latest: Senate OKs gas tax hike as Calley breaks tie

LANSING, Mich. (AP) - The Latest from the Capitol on the Michigan Senate’s consideration of a $1.5 billion road-funding plan (all times local).

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5:25 p.m.

The Republican-led Michigan Senate has approved a 15-cents-a-gallon gasoline tax increase phased in over three years after Lt. Gov. Brian Calley broke a 19-19 tie.

Eighteen Republicans and one Democrat voted for the bill Wednesday. Ten Democrats and nine Republicans opposed it.

It’s a major piece of a $1.5 billion road-funding plan being approved by the Senate. Other bills would redirect $700 million in general funds a year toward roads and trigger income tax cuts if the general funds grows by more than inflation.

The Republican-controlled House three weeks ago passed a plan that largely avoids big fuel tax increases. Gov. Rick Snyder, the House and Senate will next try to negotiate a compromise in coming months.

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4:55 p.m.

Advocacy groups are continuing to react while the Michigan Senate considers a road-funding plan that would increase fuel taxes, cut spending elsewhere and potentially trigger income tax cuts.

The Michigan Townships Association said Wednesday it supports a 15-cents-a-gallon gas tax hike and competitive bidding provisions.

But the association has concerns with redirecting $700 million from other parts of the budget toward roads. It cites Senate Fiscal Agency figures showing discretionary spending that can be cut totals just $4.3 billion of the $54 billion budget.

Conservative advocates have emailed supporters accusing Senate Republicans and GOP Gov. Rick Snyder of holding roads “hostage for tax increases.” The group Concerned Taxpayers of Michigan is urging people to calling their legislators and it’s bringing up the possibility of recall elections.

The Senate is planning to vote on the nine-bill package later Wednesday if Republicans can muster enough support.

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12:25 p.m.

Gov. Rick Snyder’s top lobbyist says he is “fairly confident” that the Republican-led Senate will pass a $1.5 billion road-funding plan.

Senior adviser Dick Posthumus told reporters Wednesday during a Senate break that the proposal is a “great step forward” despite the administration’s concerns that $700 million in unspecified spending cuts is too much. The former lieutenant governor says good pieces of the legislation include a 15-cents-a-gasoline tax increase to provide a permanent road funding increase.

Senators are breaking until the afternoon as majority Republicans work on amendments before voting. Senate Majority Floor Leader Mike Kowall says “it’s a matter of giving and taking.”

Democratic Sen. Bert Johnson says it looks like Republicans will “go it alone” to pass the plan because Democrats cannot support “undoable” spending cuts.

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11 a.m.

Michigan senators are preparing for a long session to consider a $1.5 billion road-funding plan that includes a 15-cents-a-gallon increase in the state’s gasoline tax.

Republicans and Democrats discussed the proposal separately for about 45 minutes Wednesday morning in private caucus meetings near the floor of the Senate chamber. Democrats have concerns with the plan, and it’s unclear if majority Republicans can muster enough votes to pass it without Democratic support.

Further talks behind closed doors are expected after the Senate attends to regular business.

Legislation approved by a committee Tuesday would lower Michigan’s income tax each year that general funds grow more than the inflation rate. It also would redirect hundreds of millions in general funds to roads through future unspecified spending cuts in other parts of the budget.

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4 a.m.

The Michigan Senate plans to vote on a $1.5 billion road-funding plan that would raise fuel taxes and redirect other government revenues to transportation infrastructure.

Votes scheduled for Wednesday come a day after the Republican-backed legislation was unveiled and quickly approved by a committee.

The proposal includes increasing the state gasoline tax by 15 cents a gallon to generate $800 million annually. Michigan’s income tax would drop each year that general funds grow more than the inflation rate.

The plan also calls for dedicating $700 million more a year to roads through future unspecified spending cuts.

If Republicans can muster support for their legislation opposed by Democrats, further negotiations could last into the fall. The House approved a roads plan weeks ago that includes a smaller inflationary gas tax hike.