The Gongwer Blog

There's A Budget/Roads Fight A Fixin' To Come, Who's Got The Stronger Hand?

By John Lindstrom
Publisher
Posted: June 21, 2019 3:54 PM

We are entering an unusual period in Michigan governance. The economy is still pretty good. The state is relatively flush fiscal-wise. July 4 is soon upon us with parades and hot dogs and fireworks and cakes with flags and did we say parades already?

And we do not have a budget. Nor, unless all state leaders have the same divine dream at the same time and come to accord over coffee some morning next week, will we have a budget by July 4. Which means: There's a budget fight a-comin'. Which is directly tied into the road fight that's here already but hasn't yet put on the gloves.

So, what does the tale of the tape tell us? Who has the stronger hand in this robust discussion we expect soon? It's no surprise really, it's Governor Gretchen Whitmer.

But, let's be honest, and not to take away from Ms. Whitmer's position, the governor – any governor – has an advantage over the Legislature in settling a budget. There is the veto thing, after all. And the governor always has a bargaining advantage over lawmakers. Need a library, a rest stop, help with a development issue, let's see representative or senator, where were you exactly on that road tax vote?

Fixing the roads does exactly give Ms. Whitmer a bigger advantage. It was the issue she ran on, it was the primary issue that got her elected. She's come up with a proposal and been pushing it hard with the general electorate.

Of course, her proposed 45-cent hike in fuel taxes isn't popular. But getting Afghanistan's, sorry Michigan's, roads fixed is very popular. And creating a situation where the roads stay nice and fixed, like they are in most states, is also very popular. And Ms. Whitmer has kept pushing the idea of don't like my plan, come up with something else. That shows flexibility in finding a solution.

She was helped in that this week when House Democrats did come up with a plan that boosted revenue for roads, though not through a fuel tax hike. The House Dems taking that step silences one complaint majority Republicans have made: that Ms. Whitmer's defenders have not produced a plan. Now the focus goes squarely on the Republicans to produce an actual proposal that answers Ms. Whitmer.

House Republicans have done the most, thus far, on the roads question, but their somewhat non-specified strategy of cutting the budget, possibly selling assets and trying to redirect funding runs into a ton of overall management problems they as yet have not resolved. You can only sell an asset once, after all, and fixing the roads is an ongoing problem. Pulling money from schools for roads, that's a tough sell, as will be finding the money to replace the school money pulled for the roads.

Not that Ms. Whitmer will have an easy time. She'll take some body blows in getting a resolution. There will be, there will have to be, compromises. All sides will have to come out with what they can call a win in the fights. It could get tense. Right now, one suspects it won't come down to 11:59 p.m., September 30 before a resolution is reached. But we could be into football season before it's finished.

Of course, the way the Tigers are playing it may as well be football season already, except that means watching the Lions, so maybe the best show will be the budget/roads fight.

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