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Michigan budget proposal ties marijuana tax to road funding

State budget proposal would tax marijuana sales to boost road repair funding
E Saginaw Street
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LANSING, Mich — The long-awaited state budget includes a new proposal that could bring millions of dollars to local road projects.

  • Lansing residents are calling for repairs on major roads like Willow, Waverly, MLK Blvd, Pleasant Grove, and Jolly Road due to ongoing issues with potholes and damage.
  • City officials acknowledge the road conditions but cite limited funding as the main barrier to widespread repairs.
  • A new state budget proposal includes a 24% tax on marijuana sales that will go toward a fund dedicated to road construction, maintenance, and preservation.
  • While hopeful, city leaders want long-term, reliable funding rather than one-time boosts to effectively address infrastructure problems.

WATCH: Michigan budget proposal ties marijuana tax to road funding

Michigan budget proposal ties marijuana tax to road funding

Residents across the city have voiced their frustrations over deteriorating roads, citing potholes and rough surfaces that are damaging their vehicles and raising safety concerns.

"Willow... Waverly," said one local when asked which streets need urgent attention.

"MLK Blvd, Pleasant Grove, and Jolly Road especially," added another resident.

The list is long, and the message is clear: Lansing drivers want action.

"This car I'm driving — I have to watch out for potholes heading out to Jackson. It can tear my rims up," said a frustrated motorist.

Andy Kilpatrick, Lansing's Public Service Director, acknowledges the city's infrastructure challenges, noting that they’re not blind to residents' complaints.

Andy Kilpatrick interview

"When people call and say, ‘Hey, this road has issues,’ it’s not a surprise to us," Kilpatrick said. "We know where we have issues. Most of the time it’s just a funding challenge we have."

While projects like the ongoing improvements on Michigan Avenue are underway, Kilpatrick says broader improvements across the city are constrained by limited financial resources.

Included in the new state budget is a proposed Comprehensive Road Funding Tax Act, which would impose a 24% tax on marijuana sales. The revenue generated would into a dedicated fund for road construction, maintenance, and preservation statewide.

When asked whether the new proposal offers any relief, Kilpatrick was cautiously optimistic.

"It’s a good sign to see more money for roads and infrastructure," he said. "But if that’s a one-time funding increase, it’s helpful — but it doesn’t really address the problem. What I’d really like to see is a formula that guarantees we’ll have increased funding so we can rely on that."

The exact amount Lansing and other Michigan municipalities could receive from the proposed fund remains unclear. However, city officials are keeping a close eye on state budget negotiations, hoping to secure as much funding as possible to address residents' concerns.

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