A plan by Michigan House Republicans to provide relief at the gas pump is coming under fire from the other side of the aisle.
GOP lawmakers want to put the gasoline tax on a summer vacation. Their plan is to suspend the state sales tax on gas from Memorial Day until Labor Day. The reps say they are concerned that summer tourism and travel may decline as gas prices rise.
With the state tax on hold, gas prices could in theory drop 24 cents a gallon, or about $5 on the average fill-up.
According the Treasury Department, about 75 percent of Michigan’s gas sales tax revenue goes to the School Aid Fund. So how will that money be replaced? Rep. Rick Jones says that should not be a problem. The Grand Ledge Republican told a Lansing TV station that K through 12 funding will not fall short because the money will be replaced with surplus cash left over from last year.
But House Democrats question the math. They say the new plan for the pump is just a temporary fix that won’t really help drivers. House Democratic Caucus spokesman Greg Bird say the plan is a job killer. Bird says there is no surplus from last year’s budget, and that the plan cuts directly into school funding and that means this plan could cause lay-offs at some Michigan schools.