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Split Michigan House OKs plan to shift fuel taxes to roads

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Gov. Gretchen Whitmer proposed road plan includes a 45-cents-a-gallon gasoline and diesel tax increase, establishing a blueprint that would eventually boost transportation spending by roughly $2 billion annually. (The Trucker file photo)

LANSING, Mich.— Sales taxes collected at the gas pump would be shifted to road repairs under a budget plan approved Thursday by the Michigan House, where majority Republicans called it a first step in response to Democratic Gov. Gretchen Whitmer’s call for higher fuel taxes to fix deteriorating transportation infrastructure.

GOP lawmakers said they structured their blueprint so schools and municipalities, which now get most of the sales tax on fuel, would be held harmless. But Democrats were skeptical, saying the spending bills would not do enough to improve the roads and ultimately would create new fiscal problems for education and local governments.

Michigan spends less per capita on transportation than many states but has fuel taxes that rank among the country’s highest. That is because it assesses a sales tax on gasoline — which is rare — while the revenue primarily helps fund education and local governments.

“People expect when they pay at the pump that every penny paid in taxes at the pump is a penny that is going to go toward roads. That is what we just accomplished with this budget while funding our roads at a record level without raising taxes one cent,” said Republican House Speaker Lee Chatfield.

The House action was the latest move in what appears likely to be a protracted budget process that that will extend into the summer months. Whitmer in March proposed her plan, including a 45-cents-a-gallon gasoline and diesel tax increase, while the GOP-led Senate passed its proposal in May. Her blueprint would eventually boost transportation spending by roughly $2 billion annually, while the Senate proposal would spend an additional $132 million earlier than planned.

Under the House budget, the state would gradually direct $850 million more to roads a year — though Chatfield characterized it as a “first step” and said there will be further talks with Senate leadership and the Whitmer administration.

Democrats opposed the transportation budget, K-12 budget and other spending bills that were passed Thursday. The measures would increase funding for schools and universities but less so than Whitmer wants. They also would cut public transit — shifting the money to roads — reduce information technology spending across state government and not include water infrastructure improvements proposed by the governor.

“We can do better. We have an obligation to do better,” said House Minority Leader Christine Greig. “House Democrats are ready to work with our colleagues on a budget that fixes our problems and not on one that creates new ones.”

Also Thursday, the House GOP backed after critics said the way the transportation budget was changed in a committee Wednesday could have halted or slowed the construction of a new bridge between Detroit and Canada. Canada is paying for the project entirely, but Republicans had concerns about transparency regarding reimbursements to the state for its expenses.

They reinserted a provision to let the state do work that is reimbursed, while adding new requirements so spending reports are submitted to legislators.

 

 

 

 

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  1. Tom Ham

    June 15, 2019 at 10:50 am

    Not only does the State of Michigan charge sales tax on fuel (the articles says this is rare for a state to do so), they also charge sales tax on the fuel tax you pay at the pump. If the total fuel tax on a fill-up is $5.00 you also pay 30 cents (6% sales tax) on that $5.00 as they consider the fuel tax a purchase. They have done this for decades. Almost no one knows so they get away with it.

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The Nation

Mack Trucks doubles down on debut of RoadLife 2.0

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Mack Trucks kicked off RoadLife 2.0 with the debut of two episodes on roadlife.tv. One features the grueling efforts of Alaska Department of Transportation snowplow drivers to clear one of the snowiest highways in the United States. (Courtesy: MACK TRUCKS)

GREENSBORO, N.C. — Mack Trucks is doubling down on the debut of RoadLife 2.0 with the launch of two episodes on roadlife.tv.

Featuring the grueling efforts of Alaska Department of Transportation snowplow drivers to clear one of the snowiest highways in the U.S., to the challenge of building a modern logistics business from the ground up, RoadLife 2.0 picks up from last season, sharing the stories of everyday people doing extraordinary things.

“Our first episodes feature Alaska DOT and Full Tilt Logistics, two organizations with very different missions,” said John Walsh, Mack Trucks vice president of marketing. “Yet in both of their stories, a number of commonalities emerge: hard work, dedication and the ability of Mack trucks to help them achieve success.”

The Richardson Highway is the only road in and out of Valdez, Alaska, the terminus for the Trans-Alaska oil pipeline, and Alaska DOT relies on two Mack Granite model snowplows to keep the road open.

Battling in the neighborhood of 400 inches of snow annually, Alaska DOT relies on the trucks’ brute strength to clear the road, as well as some high-tech tools to make sure they stay on the road, even in whiteout conditions. A sophisticated differential GPS system with an in-cab display shows drivers where the truck is located to within less than an inch.

“Now, it’s almost like a video game,” said Mark Hanson, Alaska DOT terminal manager in describing the differential GPS system. “If I start going over the centerline, the indicator on screen turns red to tell me I’m not where I need to be. If I’m in a white out, I still know where I’m at in the road.”

Reno, Nevada-based Full Tilt Logistics takes the meaning of a family business to the next level. Starting with just three trucks, five members of the Novich family quickly grew the business into a 16-truck fleet hauling high-value loads across the western United States.

Full Tilt operates with the Mack Anthem model.

“When we were first starting out, I was doing some research into the driver shortage, where it’s at now and where it’s going,” said Cris Novich, managing director, transportation for Full Tilt Logistics. “It became abundantly clear that our No. 1 customer is the driver. If we keep them happy, they will want to come work here.”

Additional RoadLife 2.0 episodes will premiere throughout the summer and into the fall. Viewers can watch RoadLife episodes on roadlife.tv and Amazon Prime Video, with additional content featured on Mack Trucks’ social channels: Facebook, Twitter, Instagram, LinkedIn and YouTube.

 

 

 

 

 

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WIT, Freightliner seek nominee for Influential Woman in Trucking Award

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The winner of the 2019 Influential Woman in Trucking award will be announced at the WIT Accelerate! Conference & Expo held in Dallas September 30-October 2. (Courtesy: WOMEN IN TRUCKING)

PLOVER, Wis. — Women In Trucking Association and Freightliner Trucks are seeking candidates for the 2019 Influential Woman in Trucking award.

The award was created in 2010 and recognizes women who make or influence key decisions in a corporate, manufacturing, supplier, owner-operator, driver, sales or dealership setting.

The winner must have a proven record of responsibility and have mentored or served as a role model to other women in the industry.

“The Influential Woman in Trucking Award recognizes exceptional women leaders who have been advocates and role models to others,” said Ellen Voie, president and CEO, Women In Trucking. “Each year, I am thoroughly impressed by the caliber of women nominated.”

Now in its ninth year, the award honors female leaders in the trucking industry.

Past recipients include Marcia Taylor, CEO of Bennett International Group; Rebecca Brewster, president and COO, American Transportation Research Institute; Joyce Brenny, president, Brenny Transportation/Brenny Specialized; Rochelle Bartholomew, CEO, CalArk International; Kari Rihm, president, Rihm Kenworth; Ramona Hood, vice president of operations, planning and strategy, FedEx Custom Critical; Daphne Jefferson, former deputy administrator at the Federal Motor Carrier Safety Administration, and Angela Eliacostas, founder and CEO, AGT Global Logistics.

“When I first started my career, there were very few women in the trucking industry let alone in leadership positions,” said Kary Schaefer, general manager, marketing and strategy, Freightliner Trucks and Detroit Components. “It’s amazing to see how the industry has changed and women are now a driving force in all areas of trucking. Freightliner is proud to sponsor this award and recognize those women who are not only making a difference in their own roles but for all women in the trucking profession.”

Nominations will be accepted through August 1 at https://www.womenintrucking.org/influential-woman-in-trucking.

The winner will be announced at the WIT Accelerate! Conference & Expo held in Dallas September 30-October 2.

Each finalist will be asked to serve as a panelist for the “Influential Women in Trucking” panel discussion. Those who nominate a candidate need to ask the nominee to save the date for this event if she is named a finalist.

Women In Trucking Association, Inc. is a nonprofit association established to encourage the employment of women in the trucking industry, promote their accomplishments and minimize obstacles faced by women working in the trucking industry. Membership is not limited to women, as 17 percent of its members are men who support the mission.

 

 

 

 

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Group pushes FMCSA for rulemaking before changing crash preventability program

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The FMCSA's Crash Preventability Demonstration Program came about after motor carriers complained that there was no method in place to determine who was at fault for accidents involving big rigs. (Associated Press)

WASHINGTON — A coalition of 10 trucking-related organizations has petitioned the Federal Motor Carrier Safety Administration for a rulemaking if the agency intends to change how it analyzes and publishes data on motor carrier crashes.

The petition was filed on June 14, 2019, by the Motor Carrier Regulatory Reform (MCRR) coalition, which includes organizations representing more than 10,000 carriers, shippers and brokers.

David Gee, chairman of Alliance for Safe, Efficient and Competitive Truck Transportation (ASECTT) said FMCSA officials have indicated that they plan to make permanent as a matter of enforcement policy its crash preventability pilot program, the Crash Preventability Demonstration Program, which has been in place for nearly two years.

As of the end of the first quarter this year, carriers had submitted nearly 11,000 requests for crash preventability determinations under FMCSA’s narrowly defined program since August 2017. However, Gee said the program has not been subject to a formal rulemaking process.

On its website, the FMCSA said the Crash Preventability Demonstration Program is expected to last a minimum of 24 months.

The agency plans to make the program permanent, Transportation Elaine Chao said during an appearance at the Mid-American Trucking Show in Louisville, Kentucky, in March.

“As you know, this program is a response to industry concerns that crashes caused by factors outside of a driver’s control are still shown on the driver’s record,” Chao said. “Based on positive feedback from industry stakeholders, the Department will propose to make this demonstration program permanent. And, the Department of Transportation will propose to add even more of these scenarios for prevention reviews.”

The demonstration program got its impetus after motor carriers complained that there was no method in place to determine who was at fault for accidents involving big rigs, and drivers were getting penalized on their CSA scores and motor vehicle records, and carriers were getting penalized on their CSA scores.

In its explanation of the program on its website, the FMCSA said studies show that crash involvement is a strong indicator of future crash risk.

“The Crash Preventability Demonstration Program allows FMCSA to gather data to examine the feasibility, costs, and benefits of making crash preventability determinations on certain crash types,” the website says. “FMCSA will use the information from the program to evaluate if these preventability determinations improve the Agency’s ability to identify the highest-risk motor carriers.”

Drivers and carriers alike believe that about 75 percent of the crashes involving tractor-trailers and passenger vehicles are the fault of the driver of the passenger vehicle.

In its petition, the MCRR coalition argued that FMCSA must conduct a rulemaking before adopting any permanent program to call balls and strikes on crashes.

Publication of preventability metrics would, among other things, constitute a violation of the Fixing America’s Surface Transportation (FAST) Act, the Administrative Procedure Act (APA), and federal executive orders intended to protect the industry against bureaucratic overreach in the name of guidance, the coalition told the agency.

The petition said a key problem with FMCSA’s approach is that the term “preventability” is an artificial construct that does not equate to carrier fault, much less to a systemic violation of safety regulations.

The MCRR coalition argues that the publication of preventability data and metrics would result in increased insurance rates and lost business by carriers that the FMCSA acknowledges are fit to operate and, therefore, fit for shippers and brokers to use.

The subjectivity of the preventability standard and its lack of due process suggest that adopting the trial program as policy guidance would hurt the industry, especially small carriers, the petition said.

The Motor Carrier Regulatory Reform coalition is an affiliation of organizations that frequently weigh in with FMCSA and Congress to promote reasonable regulation and enforcement affecting motor carriers and their business partners. The coalition membership varies slightly depending on the particular issue.

For purposes of the crash preventability rulemaking petition the coalition includes the Air and Expedited Motor Carriers Association, the Alliance for Safe, Efficient and Competitive Truck Transportation, the American Home Furnishings Alliance/Specialized Furniture Carriers,  Apex Capital Corp., the Auto Haulers Association of America, the National Association of Small Trucking Companies, the Tennessee Motor Coach Association, The Expedite Alliance of North America, the Transportation & Logistics Council, and the Transportation Loss Prevention & Security Association.

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