Wednesday night, the state House of Representatives approved a road-funding package that would ramp up to $1.2 billion in new spending for road construction and repair, while making it harder to increase other state spending.
The package included nine bills. Rep. Gary Glenn voted for all but one.
He voted in favor of an existing tax revenue reallocation, in which gas taxes will be raised by 3.2 cents per gallon, but with that increase offset dollar for dollar by a reduction in property taxes, trading property tax revenue that goes to general fund spending for gas tax revenue that must by law be spent only on road construction.
The package will also cut income taxes when tax revenue exceeds inflation.
Reallocating existing tax revenue results in no net tax increase, which complies with the Americans for Tax Reform "no tax hike" pledge Rep. Glenn signed as a candidate.
(He voted against the vehicle registration fee increase in the package, which would have violated the pledge. It passed anyway, but even that increase could eventually be offset by the income tax cut.)
As MLIVE reported, the plan "includes two tax relief components — a larger Homestead Property Tax Credit and a potential income tax rollback — that could mean more money in the pockets of Michigan citizens but put significant strain on other budget areas in future years. ...All told, the House GOP plan could actually produce a net tax decrease if and when income tax rollbacks are triggered, meaning more money for roads but less for other budget items."