LANSING – Gov. Gretchen Whitmer, whose plan for a large gas tax increase was rejected last year by the Republican-controlled Legislature, announced a $3.5-billion borrowing plan to fix Michigan's crumbling roads in her second State of the State address Wednesday.

She said her plan, which does not require legislative approval, will either add or expand 122 major road projects and nearly double the amount of money available to fix roads over the next five years.

But the plan was criticized because it will increase state debt and because the money raised through the sale of bonds can only be spent on major highways in the state, not local roads.

Whitmer's speech also called for measures to improve health and education, child care, and the quality of drinking water, as well as to create more jobs in Michigan.

"The health of our state is only as good as the health of our residents," Whitmer said in announcing plans to improve health care for pregnant, low-income mothers and protect Michigan residents from further dismantling of the Affordable Care Act, known as Obamacare.

And she called for an end to workplace harassment and online hate postings.

“Whether it’s misogyny in the workplace or threats of violence online, this is unacceptable," Whitmer said. "Let’s debate. Let’s disagree. But then let’s all live up to our responsibility to stand up to hate and harassment. Remember, our children are watching.”

Roads centerpiece of speech

But Whitmer's "Plan B" for roads was the centerpiece of her 35-minute address, which was short by State of the State standards of recent governors.

It follows the rejection last year of Whitmer's proposal for a 45-cent-per-gallon gas tax hike.

"Since it doesn't require the Legislature to act, we can get started right away," Whitmer said. "That's important," partly because "our roads are dangerous, and the longer we wait, the more expensive it will be to fix them.”

Read the full address: Gov. Whitmer's 2020 State of the State

“That’s why I’m taking action now to fix the damn roads and keep Michiganders safe. My Rebuild Michigan plan will ensure we start moving dirt this spring and save us money in the long run."

She called on Republican lawmakers to step up and negotiate a long-term road funding plan to "fix all the dangerous roads in Michigan."

Still at odds with the GOP

Whitmer gave her address amid still-strained relations with the GOP-controlled Legislature in Michigan but as her national profile is growing. Last week, U.S. House Speaker Nancy Pelosi announced that Whitmer will deliver the Democratic response to President Donald Trump's State of the Union address on Feb. 4.

Barring approval of another supplemental budget bill, spending on transportation is expected to decline slightly in 2020 for the first time in many years after Whitmer vetoed $375 million in general fund money targeted at roads and bridges, as part of her budget fight with the Legislature.

More:Here's how to solve one of Michigan's biggest road funding puzzles

More:Gov. Whitmer has a new approach to Michigan's crumbling roads

Republican lawmakers last year rejected Whitmer's proposal for a gas tax increase, which would have raised about $2 billion a year to fix roads and bridges, but never made public a road funding counterproposal of their own.

"For those of you who want to keep playing games, I'm going to press on without you," Whitmer said. In Michigan right now, "impatience is a virtue."

Whitmer said she needs to do what she can to significantly improve roads and bridges quickly, before the assets deteriorate further, and she's prepared to go it alone with her bonding plan.

The State Transportation Commission will consider a bonding proposal when it meets in Lansing at 8 a.m. Thursday, according to the meeting agenda. Under the proposal, the $3.5 billion in bonding would be approved as one action, but the sale of the bonds could extend over three to four years, MDOT spokesman Jeff Cranson said.

Road agencies, others express concern

In advance of Whitmer's speech, several Republican lawmakers expressed concerns about using significant borrowing to fix the roads, saying interest on the bonds will limit available spending in future years.

"We must pursue road and infrastructure repairs that do not pass the buck to struggling families, or our children down the road," state Rep. Michele Hoitenga, R-Manton, said on Twitter on Wednesday.

Local road agencies also are concerned about the bonding move. That's because the type of bonds Whitmer plans to issue can only be used on major state highways — ones with "U.S.", "I", or "M" in front of their names, not on lesser highways or local roads.

The plan "entirely leaves out" local roads and highways under the jurisdiction of local road agencies, and is "a woefully incomplete answer to the situation with Michigan roads," Denise Donohue, director of the County Road Association of Michigan, said in a news release issued two hours ahead of Whitmer's speech.

Still, Senate Majority Leader Mike Shirkey, R-Clarklake, appeared more receptive to bonding ahead of the speech. He told reporters Tuesday he wanted to hear more details, but Whitmer's plan might just involve "commonsense asset and liability management."

And the bonding plan won approval from the head of Michigan's largest business lobbying group.

"Lawmakers have declined to take legislative action to rebuild Michigan’s crumbling roads & bridges," Rich Studley, president and CEO of the Michigan Chamber of Commerce, said on Twitter. "We commend Gov. Whitmer for taking action to fix the roads and support her plan to use state transportation bonds to rebuild major roads & critical bridges."

The Michigan Infrastructure and Transportation Association applauded Whitmer for immediate revenue for roads, but said it’s not a long-term solution.

“Even with the proposed bonding solution, the debate around a significant long-term investment cannot be delayed any longer,” said Mike Nystrom, executive vice president of the association. “We look forward to working with the Legislature and getting to work on fixing Michigan’s roads.”

House Minority Leader Christine Greig, D-Farmington Hills, called the borrowing plan bold and decisive. "I'm happy she's using the tools at her disposal," she said.

But Laura Cox, chairwoman of the Michigan Republican Party, said the speech was full of empty promises.

"Instead of committing to work with Republicans to find commonsense solutions to Michigan’s problems, Gov. Whitmer made it clear that she’ll go it alone without the Legislature if they don’t agree with her tax and spend policies," Cox said.

And House Speaker Lee Chatfield, R-Levering, said he was disappointed with the road plan.

"Last year, she had one proposal that was sticking every single driver in the state with a 45-cent tax and she would not come off of that,” Chatfiield said.

“Now her second option is to take out a loan, even though the state is already paying back on bonds from two previous administrations."

The state last raised money for roads by issuing revenue bonds — given that name because the collection of future revenues such as fuel taxes and vehicle registration fees are pledged as collateral — in 2011.

Bond payments from the Michigan Department of Transportation State Trunkline Fund are $118.4 million this year, but without new bonding are projected to drop to $74.9 million in 2023 and to $19.6 million in 2024, Cranson said.

On average, interest paid on the roughly $1 billion in bonds now outstanding is between 4.5% and 5.3%, according to the House Fiscal Agency.

Speech tackles health care, schools

Whitmer also announced:

A proposal, which would require legislative approval, to enshrine in state law parts of the Affordable Care Act, in case the federal legislation is struck down. Whitmer said she wants to preserve in state law parts of the federal law that ban insurance companies from denying coverage because of pre-existing health conditions and that bar insurance companies from denying coverage or otherwise discriminating on the basis of gender or sexual orientation.

A proposal to fund the Michigan Reconnect program, which would provide free skills training and degree programs for adults and help reach a goal of 60% postsecondary attainment by 2030.

A "Healthy Moms, Healthy Babies" program to improve care for pregnant women to ensure a healthy pregnancy and to increase access to birth control. It's in part an effort to reduce Michigan's higher-than-average infant mortality rate, especially among nonwhite families. One piece of the plan would extend health coverage for postpartum care for low-income moms from 60 days currently to one full year after birth.

An expansion of the number of families that would be eligible for subsidized child care, raising the eligibility threshold to 150% of the federal poverty level from 130%, and additional funding for the preschool program for 4-year-olds known as the Great Start Readiness Program, moving the state closer to universal preschool.

Her administration will team up with nonprofit organizations to educate parents about how to win exemptions to a state law that would hold back third-graders with poor reading skills. Whitmer believes the law the Legislature passed in 2016 will harm children and will hit low-income school districts especially hard.

She will create a bipartisan Prescription Drug Advisory Task Force to report by Aug. 15 on ways to make prescription drugs more affordable for Michiganders.

Looking back to 2019, Whitmer cited as highlights the bipartisan legislation to reform no-fault auto insurance. She said motorists will start to see significant savings resulting from the legislation this summer.

Whitmer also cited the thousands of new jobs announced by automakers in southeast Michigan. She also cited bipartisan criminal justice reforms, including raising the age from 17 to 18 for routinely prosecuting offenders as adults, rather than as juveniles.

Gilda Jacobs, president and CEO of the Michigan League for Public Policy, said many of the health and social policy measures the governor announced are ones her group has long pushed for.

Most will require legislative approval, but Jacobs said she is cautiously optimistic.

"It's an election year" for members of the state House, she said. "Health care and child care are right up there in terms of things that are going to be important to their constituents. They're going to hear about this at the door."

Whitmer's willingness to bypass an unwilling Legislature in favor of her executive powers has rankled Republican leaders during her first year in office.

Notably, she worked with Attorney General Dana Nessel to declare unconstitutional legislation passed under former Gov. Rick Snyder to allow for construction of a tunnel under the Straits of Mackinac to encase Enbridge's Line 5 oil pipeline. Both Whitmer and Nessel campaigned on shutting down Line 5, and their actions triggered an ongoing court battle.

After Republican leaders finished their version of the 2020 state budget without her input, Whitmer made unprecedented use of the line-item veto and the powers of the State Administrative Board to shift funds inside state agencies. She issued 147 line-item vetoes to cut spending of about $1 billion and used the State Administrative Board to shift about another $600 million.

Whitmer and lawmakers eventually reached a budget agreement that reversed many, but not all, of the vetoes and transfers.

Contact Paul Egan: 517-372-8660 or pegan@freepress.com. Follow him on Twitter @paulegan4. Read more on Michigan politics and sign up for our elections newsletter.