Michigan Senate considers $1.5B road plan with gas tax hike

The legislation, which also is tied to annual income tax cuts if general revenues rise by more than inflation, was the subject of hours of closed-door talks and could be voted on later in the day.

Democrats said majority Republicans should be prepared to pass the bills without their support, saying the proposed yearly diversion of $700 million from the $9.9 billion general fund — the state's second biggest spending account behind school aid — would be too steep.

Republican Gov. Rick Snyder's top lobbyist, senior aide Dick Posthumus, called the plan a "great step forward" despite echoing concerns with shifting $700 million in unspecified general funds to roads.

The Republican-led House passed a nearly $1.2 billion plan in mid-June that would earmark $900 million in general funds for roads, as well as bring the 15-cent diesel tax in line with the gas tax and increase both with inflation in the future, cut $135 million in economic development spending, increase registration fees for hybrid and electric vehicles and eliminate a tax credit for lower-income residents.