LANSING – Doubt is mounting among House Republicans about using the state’s surplus funds for tax relief with momentum building to instead use the funds for road repairs as the pressure from constituents, especially after the first thaw of the year, builds to improve the state’s crumbling roads.

Rep. Tim Kelly (R-Saginaw Township), sponsor of a bill in the House that would reduce the income tax rate, said Monday funds that could be used for tax relief would be better spent on road repairs, and that much of his caucus is starting to feel the same way.

Rep. Jeff Farrington (R-Utica), who also sponsors a bill in the House income tax rollback package (HB 5265 , HB 5266 and HB 5267 ), has said if it were up to him personally, road funding would take precedent above tax relief.

Farrington said on Monday that the House has always viewed road funding as a first priority and tax relief comes in at a close second.

Anna Heaton, spokesperson for House Republicans and House Speaker Jase Bolger (R-Marshall), said Mr. Bolger remains open-minded about plans for the state’s surplus, as long as it provides a long-term return on investment for constituents.

“We started out the year with an impetus to provide tax relief for the hardworking men and women of Michigan,” Heaton said. “As winter has worn on, and on, and on, constituent feedback with regard to the condition of roads across the state has grown to a fever pitch. Because of that, momentum has shifted slightly toward road repairs, and that is reflected in the additional $115M we added for road projects in the supplemental.”

Kelly (R-Saginaw Township) said there is little likelihood tax relief will happen instead of road funding for the fiscal year 2014-15 budget.

“It’s so apparent. You don’t talk to anybody that is not absolutely out of their head (about road conditions),” he said. “Whatever relief, whether it is income tax or homestead tax credit, whatever – the benefits are minimal compared to what we could do if we put the money in the roads.”

Kelly said the House plan for tax relief started as an alternative to Governor Rick Snyder’s Homestead Property Tax plan, but that the need for improved roads “quickly consumed us all,” he said.

Sen. Jack Brandenburg (R-Harrison Township), sponsor of the Senate income tax rollback (SB 402 ), said the problem with road funding won’t be fixed simply by putting the surplus money into road repairs. He said the state relies too heavily on federal funds and Public Act 51 of 1951 needs to be entirely re-written.

“Suppose they took that $1 billion of surplus and put it all toward road repairs, you’re barely touching the tip of the ice berg,” he said.

Mr. Brandenburg said he is reasonable and will keep an open mind, but that his bill would roll back the income tax rate to 3.9 percent over four years, and would only use $143 million in the first year. He also said he has been waiting on the income tax rollback since he introduced similar legislation in 2012.

He also said during the four years, it would put $829 million into the public sector, rather than being used for government spending. Brandenburg said he has “been hearing forever the price of government, and how it’s getting out of control.”

“That surplus is money paid. Money paid by the people,” he said.

Amber McCann, spokesperson for Senate Republicans, said there hasn’t been any specific discussion on choosing tax relief or road funding.

“There are members who would prioritize tax relief higher than road repairs, and vice versa,” she said.

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