Michigan’s Proposal 1What every citizen should know

Proposal 1 and schools• Safety: Safer roads for buses and students who drive to school

• Stability:

o Directs 100% of School Aid Fund revenue to K-12 schools and community colleges

o Tie-barred bill requires an adequacy study to determine the cost of a high-quality K-12 education

• Resources: Approximately $300 million additional funds annually

• Renewal:

o Michigan’s last best chance to increase stability and resources for schools and roads

o New investment in transportation infrastructure will spur economic development, creating healthy, vibrant communities that attract more students to local schools

The ProblemThe condition of our roads, highways and bridges is downright dangerous, resulting in serious accidents and putting lives at risk

•Deterioration results from a lack of “investment” from the state.

•It costs to up to 6X more to repair a road in “poor” condition.

•Currently 32% of our roads are in “poor” condition, and that is expected to increase to 65% by 2018.

•No one disagrees: Michigan needs an additional $1.2 billion annually to maintain our current infrastructure.

How big is the problem with roads?

How big is the problem with bridges?

State Investment in Roads Per Capita

Michigan $154Ohio $214New York $239Minnesota $275Indiana $289Wisconsin $302Illinois $412Pennsylvania $530

State State & Average Local Sales Tax Rate

Michigan (today) 6%

Michigan (if Proposal1 passes) 7%

Indiana 7%Ohio 7.11%Wisconsin 5.43%Illinois 8.16%

Pennsylvania 6.34%

New York 8.47%Minnesota 7.19%

Proposal 1: a complex plan with a simple set of goals:• Pay down Michigan’s transportation debt• Fix structural problems with our roads and

bridges• Protect and increase K-12 education funding• Provide tax relief for low income citizens

Proposal 1

• Ensures all state fuel taxes go to transportation

• Increases the sales tax from 6% to 7% (except on food and prescription drugs)o $1.2 billion annually will go to roads & bridges

o Additional sales tax dollars go to:

School Aid Fund ($300 million)

Local Governments ($94 million)

Earned Income Tax Credit ($260 million)

Rail/Mass Transit ($112 million)

Proposal 1: Taxpayer guarantees

1. All state gas taxes go toward transportation

2. Roads and bridges will be protected from neglect and deterioration

3. No more raids on the School Aid Fund

What happens if Proposal 1 doesn’t pass?

Learn the facts Vote May 5, 2015