LANSING, Mich. (Michigan News Source) – Michigan’s attempt to explore a pay-per-mile road usage charge (RUC) as a potential replacement for dwindling gas tax revenue has officially hit the brakes. The six-month pilot program, which aimed to recruit 1,000 residents to test the system, died a quiet death when state officials failed to secure funding for the initiative in 2024.

Borrowing the playbook from others.

Instead of forging its own path, according to a report from the news media website “Governing”, Michigan will now rely on data from other states’ RUC experiments to piece together a plan should lawmakers decide that road usage charges are the way to go.

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Michael Frezell, deputy communications director for the Michigan Department of Transportation (MDOT), reassured skeptics that Michigan doesn’t need to “reinvent the wheel” and can simply borrow lessons from states like Hawaii and Virginia. But critics argue that what works in Hawaii’s tropical paradise or Virginia’s complex system may not translate to Michigan’s pothole-ridden highways and snowplow-filled winters.

Denise Donohue, CEO of the County Road Association of Michigan, said about the idea: “A pilot is absolutely needed because we need a plan, we need structure and we need to concept out who is going to use it first.” In other words, Michigan’s unique challenges – like subzero temperatures and an uncanny ability to destroy tires – require a tailor-made approach, not a recycled one.

Road revenue: running on fumes.

The bigger issue here is Michigan’s chronic inability to fund its crumbling roads even though fixing the “damn roads” was a cornerstone of Democratic Governor Gretchen Whitmer’s first run to be governor.

Between falling fuel tax revenues and static vehicle registration fees, the state faces an estimated $3.9 billion annual road funding gap. And if the states’ drivers ever fully embrace EVs, that gap will get even larger.

A RUC system, which bills drivers based on miles traveled rather than fuel consumed, has been hailed by some as a potential game-changer. Others, however, argue it’s an invasion of privacy and a threat to freedom of movement – warning it could ultimately lead to a double burden of RUC fees and gas taxes down the line.

What’s the answer?

Gov. Whitmer recently called for increased taxes in her “Road Ahead” plan but House Republicans say that there doesn’t need to be new sources of revenue to fix the roads. State Rep. Mike Harris (R- Waterford) said, “Republicans and Democrats agree: Fixing Michigan’s roads needs to be a priority for state government,” Harris said. “But the governor is wrong on how to pay for it. We can repair our roads and drive to a better future without running over Michigan taxpayers.”