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Karoub Report – July 2019

Posted by: jgomori Posted date: July 24, 2019


Even though the Michigan Legislature is on recess, work continues on a road funding plan in an effort to find at least $2 billion to address the issue. House Republicans have moved a budget premised on the idea that the 6-cent sales tax stop being collected on gasoline and a penny-for-penny gas tax or excise tax be installed in its place to collect close to $1 billion in road revenue. That amounts to about a 15-cent-per-gallon gas tax increase. Another idea is to issue a 30-year $10 billion bond to prefund the teacher retirement system and free up $1 billon in the School Aid Fund currently being diverted from classrooms to pensions. House Democrats have introduced four alternative road funding bills that would increase the 6 percent Corporate Income Tax another 2.5 percent, raise the fees on heavy trucks, and make a pension income exempt from the income tax; Voters Not Politicians (VNP) is considering running a ballot proposal in 2020 or 2022 that would either extend or eliminate term limits; Sen. Jeff Irwin (D-Ann Arbor) has introduced legislation (SB 416) that would automatically clear misdemeanors involving low-level marijuana use and distribution from Michiganders’ records; Two gun-related bills (HBs 4200 and 4201) have been introduced by Rep. Gary Eisen (R-St. Clair Twp.) that would reduce the penalty for license holders who conceal and carry in “no-carry” zones; Attorney General Dana Nessel has filed a lawsuit in Ingham County Circuit Court seeking to close the controversial pipelines in the Straits of Mackinac. She also filed a motion to dismiss Enbridge’s Court of Claims suit that seeks enforcement of agreements made in the waning months of former Governor Rick Snyder’s administration that allows the company to build a 4.5 mile, $500 million tunnel under the Straits of Mackinac. For more information on these and other legislative issues, please click on the July 2019 Karoub Report below.


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