LANSING – Wednesday was meant to be a cooling off day following Tuesday’s impasse on talks to generate $1.2 billion in new funds for roads, but instead the disputes continued.

Senate Majority Leader Arlan Meekhof (R-West Olive) said he was surprised at remarks by House Minority Leader Tim Greimel (D-Auburn Hills) on road funding talks and how a proposal that the Legislative Quadrant may have on the table is insufficient.

The problem continues to be whether and how to provide income tax relief as a sweetener to an expected gasoline tax increase (See Gongwer Michigan Report, October 13, 2015).

“He sat in the same room, saw the same spreadsheets I did and understood that the way we’re doing it by the redirection of revenue going a little bit at a time and tax rollback only when there is over-the-top revenue,” Meekhof said midday Wednesday. “He saw that it worked, so I’m not quite sure where he’s coming up with his assertion that it’s cutting anything.”

The quadrant meeting scheduled for noon was canceled. Snyder press secretary Sara Wurfel said it was too soon on the heels of Tuesday’s meeting, after which Snyder declared the talks at an impasse. But Wurfel said Snyder would continue talking to leaders on the issue.

Meekhof said the rollback has been on the table the whole time, “and now at the 11th hour (Greimel) wants it removed,” Meekhof said. “I’m not going to remove it.”

The income tax rollback passed by the Senate helped to garner some Republican votes for the meat of the legislation that seeks, in part, a gas tax hike. The Senate plan is complicated, only allowing a reduction in the tax if revenues grow and putting no bottom on how far the income tax rate could fall.

“The only dispute is, is it the rate of inflation or a little bit more than the rate of inflation?” Meekhof said of the rollback likely to be included in a final deal on road funding. “But it’s the same mechanics.”

Asked if he felt as though Greimel’s concerns were “coming out of nowhere,” Meekhof said the first he had heard of such a concern came Tuesday. But he said the Senate stands ready and willing to work on a plan.

“We sent over a plan with an income tax rollback, specifically protecting the things we think are important, and dedicating money towards roads. I think that was a good plan,” he said.

Meekhof said Greimel ought to “find a way to compromise with Speaker Cotter and get it done.”

But Meekhof wouldn’t go so far as to say that if a roads solution doesn’t get done soon that it would be solely Greimel’s fault. Pointing fingers, he said, doesn’t solve the problem.

“We’re trying to solve the problem, and throwing mud around isn’t going to make it better or give us a better opportunity to do it,” he said.

Greimel spokesperson Katie Carey said Greimel was disappointed when the governor canceled the quadrant meeting originally scheduled for Wednesday.

On Meekhof’s comments, Carey said: “We respectfully disagree with the Senate majority leader. We were always concerned with the hit to the General Fund.”

Carey noted public schools, safety and other Democratic priorities are funded through the General Fund.

She also said an income tax cut is going to help the wealthier residents of the state.

“It is not going to help low-income Michiganders,” she said.

She also said the Democrats are trying to find a roads solution that focuses mostly on roads.

“We want something that is more concrete that will be a long-term financially sustainable solution to fix the roads,” she said.

Cotter spokesperson Gideon D’Assandro said Cotter and Snyder met Wednesday and discussed goals on the issue moving forward. Cotter remains hopeful talks will resume, D’Assandro said.

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