The Gongwer Blog

Driver Responsibility Fees: A Showdown Between Snyder, Legislature?

By Nick Smith
Staff Writer
Posted: October 20, 2017 12:49 PM

As the Legislature plots a course on forgiving driver responsibility fees on some, if not all, of the more than 300,000 Michigan drivers saddled with them, a story we’ve heard before is beginning to emerge: the potential for butting heads between Governor Rick Snyder and his fellow Republicans who run both legislative chambers on a fiscal issue.

The Senate moved Thursday on amended legislation that would forgive about half of the state’s outstanding driver responsibility fees, or those six years or older. The Department of Treasury would be tasked with enforcing payment of those less than six years old as the program is phased out.

Meanwhile, the House is on track to move on a proposal of its own within the next couple of weeks. However, House Speaker Tom Leonard (R-DeWitt) remains dedicated to full forgiveness, wanting a clean break with a program passed in 2003 that a number of lawmakers consider a mistake for their predecessors to have passed in the first place.

Adding another layer to the proceedings is Mr. Snyder’s opposition to forgiving the fees. His administration has pointed to a $35 million hit to the state budget as well as concerns over inequity in allowing some to be forgiven.

All of this sets up what could be an interesting showdown when it comes to negotiations between both chambers and Mr. Snyder.

Support for eliminating a program long bemoaned as being unfair to residents and keeping hundreds of thousands of drivers from having reliable access to get to work is bipartisan and strong. A number of lawmakers who see it as a poorly conceived money grab used to help plug budget gaps in the 2000s under the previous administration say it has to go. Time has also shown the negative affect it’s had on residents.

Senate Majority Leader Arlan Meekhof (R-West Olive) was right when he said all sides are “in the same book, they’re just not on the same page yet.” The House and Senate more than likely can hash out a plan that would pass both chambers with a strong majority.

Except, Mr. Snyder opposes the plan, at least the one that provides full amnesty. And the governor seldom declares support or opposition to any bill until it formally reaches his desk, so he clearly feels strongly about the matter.

The most recent example of this story playing out was when Mr. Snyder vetoed legislation that would have accelerated the phaseout of applying the state sales tax to the value of a trade-in when purchasing a vehicle. Mr. Snyder tends to draw a line in the sand on budgetary matters such as these. For now, the Legislature appears to have blinked, last month putting a potential veto override on that legislation on hold.

Which brings me, finally, to the crux of the matter. If the Legislature were to pass driver responsibility fee legislation that were to be vetoed, would Mr. Snyder’s fellow Republicans want to move on a rare veto override and embarrass a governor of their own party?

Consider the fact that the Legislature has a number of moving parts and, theoretically, over time that $35 million Mr. Snyder has pointed to could be leveled off in the budget by other legislative action.

Also key: what if the most recent attempt at auto insurance reform disintegrates, failing as it has multiple times in recent years? Forgiving driver responsibility fees and putting the program in the dustbin of history could provide Republicans, and really to an extent Democrats as well, a much-needed major legislative accomplishment to fall back on before the election season starts next year and the desire for large policy action falls to the wayside.

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