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Michigan Considers Road Usage Charge: Paving the Way for the Future of Infrastructure Funding?
Michigan’s roads are now riddled with potholes and cracks, a stark reminder of the state’s infrastructure woes. With the gas tax, the traditional source of road funding, struggling to keep pace with inflation and the rise of fuel-efficient vehicles, Michigan is exploring alternative solutions. Enter the road usage charge (RUC), a system where drivers pay based on the miles they drive rather than the gas they pump.
The Problem: Michigan’s road funding gap is expected to reach $2.5 billion by 2030. The gas tax, currently at 27.2 cents per gallon, generates less revenue as vehicles become more fuel-efficient and electric cars gain popularity. This creates an unfair situation where electric car owners contribute less to road maintenance despite using the infrastructure.
The Proposed Solution: The Michigan Department of Transportation (MDOT) launched a survey in January 2024 to gauge public interest in road usage charges. The survey explored different models, including per-mile charges, distance-based tolls, and time-of-day fees. Preliminary results show majority support for the concept, with concerns focusing on privacy, fairness, and affordability.