Plan B to fix roads

If the road fix proposal fails, one state lawmaker says there is a fund available that could be used.
There's a lot of talk about Proposal One to fix the roads, but what happens if the proposal doesn't pass, come May?

One lawmaker has come up with a plan B that he says won't cost taxpayers a dime.

A plan B to fix the roads that would not cost taxpayers anything? Really?

"We've built up almost $18 billion. I'm asking for us to take a loan against that," said Rep. Pete Lucido (R-36th District).

That is the Catastrophic Claims Fund and if you drive a car in Michigan you pay $186 per car, per year to this fund. That money is used to reimburse insurance companies that pay over $530,000 in medical bills if you're injured in a serious car accident.  

"Injured people are going to get injured even more if these roads now, today, don't get fixed," said Rep. Lucido.

But that fund has about $18 billion in it, sitting there, gaining interest.  

"Three percent interest on $18 billion is $540 million." said Rep. Lucido.  

And the interest is almost enough to fix the roads.  Plan B?

If your back up plan is successful, taking money out of the Catastrophic Claims Fund, how much will it cost taxpayers?

Rep. Lucido said, "Nothing, zero."

Rep. Lucido tells me that the Catastrophic Claims Fund is not constitutionally protected, meaning if the legislature wanted to, they could take the money out of the fund and fix the roads.

But Gov. Rick Snyder is not crazy about the plan.

"That would be very challenging Charlie, if you look at it. Those funds are dedicated to people who are having accidents and need for their medical expenses," said Gov. Snyder.

The governor believes Lucido's plan is just a one-time funding and passage of Proposal One provides future road funding.  

"I wouldn't put that on my plan B list, but I appreciate people coming forward with ideas," said Gov. Snyder.

"I think if Proposal One makes it through then we don't have to worry about what's called an alternative plan, if it doesn't I want to get rolling on an alternative plan, I don't want to roll anymore on these rocky roads," said Rep. Lucido.

  • Popular

  • Recent

Stories you may be interested in - includes Advertiser Stories