Three statewide organizations representing public transit providers and stakeholders filed a brief encouraging an appeals court to help make road funding more stable.
The organizations — the Michigan Public Transit Association (MPTA), Michigan Association of Transportation Systems (MASSTrans) and Michigan Environmental Council (MEC) — urged the Michigan Court of Appeals to grant the state’s Jan. 15 request to intervene in a lawsuit challenging the state’s cannabis tax.
“This case is fundamentally about whether Michigan can rely on the transportation funding tools the Legislature approved,” said John DULMES, executive director of the MPTA. “Public transit agencies cannot plan routes, hire staff, or improve service if the funding behind those decisions is unstable.”
Dulmes noted that as the lawsuit continues, the organizations are “trying to understand the plans and purposes for some of the new public transit funding created by the Neighborhood Roads Act. We are anticipating some more detail in the Governor’s (Fiscal Year) 2027 budget proposal next week but expect that discussions will continue among legislators, the administration and stakeholders.”
The Michigan Cannabis Industry Association and the Harrison Township-based Holistic Research Group filed separate lawsuits challenging the 24 percent tax wholesale tax on marijuana, which was incorporated into the Comprehensive Road Funding Tax Act (See “Cannabis Association Files Suits Over ‘Unconstitutional Tax Scheme,'”
In their brief, the transportation organizations highlight concerns that the lawsuit could expand the state’s initiative‑protection doctrine in ways that unintentionally jeopardize the state’s ability to fund transportation in the future.
The groups also argue the lower court’s approach risks turning routine tax policy decisions into open‑ended legal and economic disputes, creating long periods of uncertainty. They noted that because public transit systems rely on multi‑year planning, funding instability can freeze projects, delay service improvements and halt progress communities have long been waiting for.
“In many rural and small‑town communities, transit isn’t just convenient – it’s essential,” said MASSTrans President Ken JIMKOSKI. “When funding is unpredictable, agencies struggle to maintain service, let alone expand it. Riders feel the impact immediately.”
In December, Court of Claims Judge Sima PATEL denied the cannabis groups’ request for a preliminary injunction blocking implementation of the tax.
Patel has set a Feb. 10 scheduling conference date.
Details can be found in the brief.
