News Story

House Passes On Chance To ‘Fix The Roads’ With New Spending Bill

But money for Capitol security cameras, Michigan Speedway traffic control, tourism marketing and much more

During the 2018 gubernatorial and legislative campaigns, the condition of Michigan’s roads was one of the most prominent issues. There were political claims made that Michigan roads are the worst in the country, with some politicians calling the roads dangerous.

Yet 16 months after the 2018 election, in the first state budget enacted by the legislators and governor elected that year, lawmakers allocated less money for transportation than they did in the previous year. That is the first time this happened since 2014.

This week the Michigan House of Representatives had another chance to “fix the roads” when it passed a supplemental spending bill, adding $271.8 million in state dollars to the previously enacted 2019-2020 state budget. The bill included $50 million to fund the state’s response to the new coronavirus. It also included money required to pay some large legal settlements the state has agreed to.

But once again, fixing the roads appears to be a less compelling priority 16 months after the election. There is no additional funding for transportation and road repairs in the new spending bill.

Here is a sample of some of the other priorities that came ahead of road repairs:

$3 million to the Michigan Animal Agriculture Alliance to do animal industry research.

$1 million to county fairs, shows and expositions.

$3 million to the expand the scrap tire market in Alpena.

$16 million in marketing subsidies for the tourism industry.

$35 million for a career and job training program for adults.

$500,000 for city of Lansing security cameras around the state Capitol.

$500,000 for traffic control services benefiting Michigan International Speedway.

When Gov. Gretchen Whitmer gave the nationally televised Democratic response to President Donald Trump’s State of the Union speech, she spoke about government needing to spend more on infrastructure.

“During my campaign, people told me to ‘Fix the damn roads,’ because blown tires and broken windshields are downright dangerous. And car repairs take money from rent, child care or groceries,” Whitmer said, according to U.S. World News Report.

The national news site reported: “Her speech thrust a national spotlight on a regional issue. In Michigan, the condition of the roads has long amounted to a kind of statewide obsession; using the slogan ‘Fix the damn roads,’ Whitmer made the issue the centerpiece of her successful 2018 election campaign.”

The amount of state transportation spending in the 2019-20 Michigan state budget, the first approved by Whitmer, fell to $3.61 billion, down from $3.64 billion in the last budget signed by then Gov. Rick Snyder. The supplemental budget approved by the state House this week adds no more to that amount.

“Despite agreement from both Republicans and Democrats that taxpayers should spend more money on roads, the dispute about whether to raise taxes to do it led to declines in road funding,” said James Hohman, director of fiscal policy at the Mackinac Center for Public Policy. “And now it seems that they can agree to spend additional money on anything but road repairs.”

Michigan Capitol Confidential is the news source produced by the Mackinac Center for Public Policy. Michigan Capitol Confidential reports with a free-market news perspective.

Commentary

Michigan Per-Pupil Funding Reaches All-Time High

New state data shows clear upward financial trend

New numbers out from the state show that Michigan public schools have continued to receive ever-higher level of funding.

Student enrollment has dropped in recent years, but dollars contributed from key sources keep rising. In 2018-19, per-pupil spending and revenues both reached all-time highs. That remains true even when adjusting for inflation.

Public funding for education has continued to rise despite federal education spending having receded from an earlier peak during the Great Recession. During the 2018-19 school year, Michigan’s public education system received the largest amount of both local- or state-collected dollars it had in about a decade, though the number of students had declined by 10% over that time.

Longer-term trends show that most local districts are getting more money than they used to. From 2004 to 2019, per-pupil revenues in more than half of all districts outpaced both the regional and national consumer price index.

The state’s 56 intermediate school districts, regional bureaucratic agencies that provide oversight of special education and other services, have fared even better. Over the same time span, the share of education dollars spent by ISDs grew from 6.3% to 9.9%. That share has increased in each of the 15 years.

No matter how the numbers are sliced, recent trends reveal a healthy growth in overall K-12 finances. In early 2019, Michigan State University researchers released a widely cited report that used a government price deflator to adjust dollar values according to the average spending of state and local governments nationwide. Concluding that Michigan schools were underfunded, the analysis ended with revenues for the 2014-15 school year.

But now there are four additional years of data available, and the picture is a lot less bleak than the report claimed, even on its own terms. Using the authors’ preferred comparison, Michigan’s 2019 per-pupil revenues are up 8.3% from five years earlier and have returned to 2011 levels.

And the trend is likely to continue, at least in the short term. The recently approved budget for the current school year represents a 2.5% boost in state support, growth at about the rate of inflation but dedicated to serve fewer students than the year before.

Legislators have yet to release their 2021 school aid budget, but Gov. Gretchen Whitmer has again proposed a significant increase in state aid. Even so, she continues the trend of governors proposing to selectively cut the prime source of funding for students enrolled in cyber schools, although those schools already spend 24% less per pupil than their traditional counterparts.

While the 2018-19 school finance data is illuminating, it has some key limitations. For instance, it doesn’t show how effectively money is being used or how dollars are distributed at the school building level.

But before Michigan educators and policymakers can have those important policy conversations, they ought to recognize that school funding is up and is expected to continue increasing.

Michigan Capitol Confidential is the news source produced by the Mackinac Center for Public Policy. Michigan Capitol Confidential reports with a free-market news perspective.