Skubick: State could sell bonds for road money

LANSING, MI (WLNS) – Governor Snyder says he may sell bonds to raise money to fix the roads next year.

That would come while he waits for the newly enacted “road package” to deliver new revenue after 2017.

However democrats are pouncing on the possibility and even some republicans are telling 6 News Capitol Correspondent Tim Skubick that it’s not a good idea.

“I think it’s perhaps voodoo economics.”

“I think he likes to get a lot of play in the press so he’s full of rhetoric.”

The governor, the day after he praised the road fix package, is now suggesting he may sell bonds to start repairs next year.

Because the new revenue from the gas tax and registration fee increases won’t kick in until 2017.

The state is still paying off the old road bonds floated by former Governor John Engler and this senator doesn’t want to go there again.

“I would prefer not to sell bonds. It’s happened under Governor Engler. I think we should appropriate as much as we can out of the general fund,” said Senator Rick Jones (R), Grand Ledge.

But the governor apparently opposes that.

This republican senator does not endorse selling bonds.

Reporter: “You were one who said there’s not enough money on the front end.”
Senator Mike Nofs (R), Battle Creek: “Right.”
Reporter: “The chickens are coming home to roast.”
Senator Nofs: “They are and a lot of us knew that.”
Reporter: “So this is not a good move?”
Senator Nofs: “It’s not a move I would like to see.”

This republican lawmaker defends the governor’s right to sell bonds although he has concerns.

“It’s not the four-way I would do it but I’m not going to question him when it comes to financing. He’s pretty smart in that area,” said State Rep. Jeff Farrington, (R), taxation chair.

Democrats complained that waiting until 2017 would not fix the roads in between.

“He has to admit there is not enough money right now. That we need to borrow against future generations to do it doesn’t make any sense,” said Senator Curtis Hertel, Jr. (D), Lansing.

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