- Associated Press - Wednesday, May 13, 2015

LANSING, Mich. (AP) - A plan being proposed by Republican House Speaker Kevin Cotter would eventually raise more than $1 billion for road repairs. The funding would rely on these sources:

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GENERAL FUNDS

Allocating a fixed dollar amount, which would be equal to about 60 percent of the projected growth in the general fund each year, would generate:

- 2016 fiscal year: $175 million

- 2017 fiscal year: $350 million

- 2018 fiscal year: $525 million

- 2019 fiscal year: $700 million

- After the 2019 fiscal year, the increases would be indexed to inflation.

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RESTRICTED FUNDS

Cotter would redirect restricted funds now used for economic development purposes from:

- The 21st Century Jobs Fund, which uses a portion of money from the state’s annual tobacco settlement: $75 million

- Tribal gaming compacts, with funds generated by casinos: $60 million

- Film incentives program: $50 million

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TAX CHANGES

- Eliminating the Earned Income Tax Credit for low-income families: $117 million

- Raising the 15 cent tax on diesel to 19 cents to match the gas tax, then indexing the diesel and gas taxes to inflation, and levying a user fee on hybrid, electric and other alternative-fuel vehicles: $45 million

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EFFICENCIES

No dollar amount is attached to the proposed savings for this category, but Cotter said he wants to propose legislation that would require competitive bidding at the state and local levels. and expand the use of road warranties, along with adding more enforcement mechanisms. Cotter said it is difficult to project the savings.

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TOTAL RAISED

Year by year, here is what Cotter projects his plan would raise:

- 2016 fiscal year: $522 million

- 2017 fiscal year: $697 million

- 2018 fiscal year: $872 million

- 2019 fiscal year: $1.05 billion


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