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$1 Billion Road Funding Bill Is 'Short-Term Solution'

By Brandon Smith

Posted March 11, 2016

Lawmakers late Thursday approved a $1 billion, two-year package for critical state and local road construction and maintenance. Its architects call it a bridge to next year's budget:

The bill gives cities, towns and counties across Indiana about two-thirds of the $1 billion roads package.

The money comes from local income tax reserve dollars, the state surplus, and a shift in the state sales tax on gasoline.

Communities also get the freedom to direct more tax options to roads. Part of this funding will come via a matching grant program, one that Sen. Karen Tallian, D-Portage), says is flawed.

"These counties with the least ability to raise dollars are also going to be the least able to get grant money."

State roads will receive a little more than $300 million over the next two years, which all parties – including House Roads Committee Chair Ed Soliday, R-Valparaiso, – acknowledge is, at best, a short-term solution.

"We only funded the state roads for half of the next cycle to ensure that we would have to come back to the table and address a long range plan."

The road funding package also creates a task force, compromised of state and local officials, to develop that plan over the summer.

The road funding legislation also includes two items unrelated to roads: $42 million in funding for each winner of the Regional Cities Initiative (Northeast, North Central and Southwest Indiana) and additional money for Hoosier retirees, the so-called 13^th pension check.

The legislation is headed to the governor.

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$1 Billion Road Funding Bill Is 'Short-Term Solution'

By Brandon Smith

Posted March 11, 2016

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