Traverse City Record-Eagle

May 18, 2013

Audit questions use of state petroleum tax

Associated Press

---- — LANSING — Millions of dollars from a petroleum tax have been diverted to plug holes in the state budget and pay interest on debt, Michigan’s auditor general said Friday.

Money in the refined petroleum fund is supposed to pay for problems related to leaking underground storage tanks and certain inspection programs. But the report said nearly $160 million has been used to make bond payments since 2004.

Lawmakers short of cash have used another $32 million for programs at the Department of Environmental Quality, mostly air quality, the audit found.