Could Michigan shift from fuel taxes to road user charges to fund roads?

As lawmakers in the Legislature continue negotiations for the state’s Fiscal Year 2025 budget, one addition specific to transportation involves a $5 million appropriation for a pilot program to assess replacing traditional fuel taxes with a mileage-based road usage fee.

This week’s Talking Michigan Transportation podcast features another conversation with Baruch Feigenbaum, senior managing director of transportation policy for the Reason Foundation. Feigenbaum has done extensive study on the need for long-term changes to funding policy for roads and bridges. He’s also testified before legislative committees at the federal level and in several states.

He recently told Michigan lawmakers that a fuel tax is akin to “a rock star on his farewell tour” as increased fuel efficiency diminishes returns on fuel taxes.