State legislators have passed a roads funding bill and it's on its way to Governor's desk. However, a new report is connecting the funding problems to the $1.6 billion in business tax cuts passed in 2011. According to the findings, private job growth had its biggest increase in 2011, but growth slowed after the tax cuts. And nearly one-in-six Michiganders, including one-in-four children are living in poverty. Gilda Jacobs, CEO of the public policy group says the plan won't fix the roads and perpetuates the problem instead of offering solutions. She says Michigan needs to take a page from other states in the region that are better off and where business taxes are higher. Jacobs also suggests lawmakers look at the bigger picture and create a fairer income tax structure. The roads funding plan includes an increase in gas and diesel taxes, and a bump in yearly vehicle registration fees of about $20. It also includes pulling money from the General Fund and increasing the Homestead Property Tax Credit. House Democratic Leader Tim Greimel fears taking money out of the General Fund will create a big budget deficit down the road, after most lawmakers that approved the spending plan are long gone from Lansing. Snyder is expected to sign the package, although he hasn’t said when.
