Proposal 1: D.O.A.

With just 6 of 83 Michigan counties having reported it had already become painfully clear to proponents of Proposal 1, including Governor Snyder -- it was dead on arrival.

Governor Snyder released the following statement at around 9pm on Tuesday night, just one hour after polls closed:

“It’s essential that making Michigan’s infrastructure safer remains a top priority. While voters didn’t support this particular proposal, we know they want action taken to maintain and improve our roads and bridges.

The ‘relentless’ part of relentless positive action means that we start anew to find a comprehensive, long-term solution to this problem. Doing nothing isn’t an option as the costs are too great. Michiganders need to be able to get behind the wheel and not worry about dodging potholes or seeing plywood to catch crumbling concrete under overpasses.

We appreciate that this bipartisan plan was supported by so many groups – business leaders and unions, public safety officials and local governments, teachers, and the list goes on. I plan to work with my partners in the Legislature on a solution that gives Michigan residents the safe roads they need and deserve and bolsters our growing economy.”

Proposal 1, which was pitched as a sales tax increase, from 6 to 7%, in order to fund much-needed road and infrastructure repairs throughout the state, actually would have set in motion a series of other changes to legislation and taxation if approved. Many residents speaking out against the initiative underline these 'extras' as reasons for their disapproval.

Those extras include new higher wholesale fuel taxes, elimination of registration fee discounts on passenger vehicles, rate hikes on large trucks, expansion of the Earned Income Tax Credit, special fees for drivers of electric and hybrid vehicles, among others.

If passed, Proposal 1 would have put $1.25 billion per year toward road and infrastructure projects. An additional $600 million would have gone into funds for cities, schools and mass transit, as well as the state's general fund.

With 81 of 83 counties having reported by 7:30am Wednesday morning, Proposal 1 failed with just 20% of Michigan voters giving a thumbs up to the initiative.