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This policy brief discusses how Michigan policymakers might address looming limits to road funding levels. First, it explains the likely shrinkage of fuel tax revenues over the next 30 years, despite the recent fuel tax hike and introduction of automatic, inflation-based rate increases. Second, it discusses how a mileage-based user fee can remedy this deficiency by serving as a replacement for current fuel taxes. This policy brief also discusses common issues raised about MBUFs and shifting away from fuel taxes. Finally, this report proposes a framework for how such a system could be deployed in Michigan.
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