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News
LANSING — The County Road Association of Michigan is advocating for mileage-based user fees as an option for replacing fuel tax for road funding. The agency is advocating the state of Michigan launch a MBUF pilot program.
“Michigan’s gas tax — which along with license plate fees are the top two contributors to road funding — is incredibly insufficient to keep up with and restore Michigan’s crumbling road and bridge network,” read a news release sent out by the CRA in early April.
CRA points to increased fuel-efficiency leading to less gas purchased per mile as the culprit in funding shortfalls, adding that
Michigan revenue from gas tax collected peaked in 2001 and has steadily declined since.
“Add to that the headwinds of electric and hybrid electric vehicles not paying their fair share for using Michigan’s transportation infrastructure — this is why road agencies in Michigan cannot keep up with needed repairs,” said CRA CEO Denise Donohue.
States have been testing MBUF programs for about a decade. In a standard MBUF pilot, participation is voluntary and participants choose how to report their mileage: self-reporting, in-vehicle telematics, phone apps or vehicle diagnostic devices to download mileage only, with or without GPS.
“People in rural areas are often less receptive to MBUF because they travel more miles,” the CRA news release read. “But … drivers in rural areas on average would pay less than they do now because they tend to drive older and larger (i.e. less fuel-efficient) vehicles.”
In addition to concerns over privacy and collection models, there have also been concerns raised by environmental groups who worry MBUFs will discourage the purchase of electric vehicles.
Patricia Hendren is executive director of the Eastern Transportation Coalition, a partnership of transportation agencies spanning 18 states and the District of Columbia. Earlier this year she spoke to 250 county road agency representatives in Lansing.
“Michigan needs a new and more sustainable way to fund road improvements, and MBUF could be a part of that solution,” she said. “Our vehicles have changed dramatically over the last 100 years and our funding mechanisms need to change as well.”