An additional $50,000 in road funds will go a long way in improving Ortonville Roads.
That’s what Ortonville Village Manger John Lyons expects if voters OK a sales tax hike this spring that targets road repairs statewide.
If approved by voters at the polls on May 5, the current 6 percent state sales tax would jump to 7 percent. Once fully implemented, the proposal will provide $1.3 billion in additional funds to roads, $260 million in low-income tax relief, $300 million in additional funding for schools and a $94 million increase for local governments, according to state officials. The measures will also eliminate the existing 19-cents-per-gallon tax on gasoline and the 15-cents-per-gallon tax on diesel fuel. It would convert both to a 14.9 percent tax on the average price of gasoline and the average price of diesel fuel.
Local officials like Lyons now have a better idea of just how much the increase in sales tax will mean to their respective communities after MDOT released a list of projected funding levels for county and local road agencies. Cities and villages, which currently receive about $357 million a year in road funding, would pull in an estimated $592 million per year by 2018. The 83 county road agencies would see their annual collective funding jump from about $624 million to more than $1 billion. Funding for roads includes 39.1 percent for MDOT, 39.1 percent for county roads and 21.8 percent for city and villages.
Jeff Cranson, MDOT spokesperson said every level will see a significant increase in funds if the sales tax hike is passed.
‘During the first few years after the sales tax increase the additional funds will be used to pay off existing debt,? he said. ‘Then by the third year the full amount will be allocated.?
According to the MDOT data, Ortonville and Goodrich will receive an additional 60 percent more for roads by 2018 within the village limits.
Ortonville currently receives $98,156 for roads. That number will jump to $119,753 in 2016 then to $141,350 in 2017 and finally $162,947 in 2018 if the sales tax proposal is approved.
The Village of Goodrich currently receives $119,334 for roads. That number will jump to $145,591 in 2016 then to $171,848 in 2017 and $198,104 in 2018.
‘State trunk lines including M-59, M-24 and M-15 would be part of the 39.1 percent MDOT funds,? said Cranson. ‘The townships and villages like Goodrich and Ortonville will realize the improvements.?