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Lawmakers Reach Road Funding Deal But Will Revisit Debate

By Brandon Smith

Posted March 10, 2016

House and Senate leaders, along with the governor, have reached a tentative agreement that will settle this session's state and local road funding debate.

The deal would provide a little less than a billion dollars over the next year and a half for road maintenance.

House and Senate GOP leaders won't release all the details, but here's what we know:

  • The bill would utilize the Senate's plan to give more than $400 million dollars in local income tax reserve money to local communities, 75 percent of which must be used for roads.
  • It does not include the cigarette and gas tax increases in the initial House road funding plan, but it does include that plan's options for local road taxes and a $100 million matching grant fund for local communities' road investments.
  • It would also spend down the state's surplus to help provide an influx of state road dollars - a staple of the governor's plan.


House Speaker Rep. Brian Bosma, R-Indianapolis, says the plan gives everyone something to cheer about.

"It addresses immediate needs, meets some of our long-term goals and assures that everyone is at the table in the budget session to work on the long-term issue," Bosma says.

The deal would also redistribute part of the state sales tax on gasoline. One out of every seven cents from that tax currently goes to road funding. The agreed-upon plan would move an additional one-and-a-half cents from the gas sales tax to road funding.

Senate President Pro Tem David Long, R-Fort Wayne, says the deal includes the additional $42 million Pence sought to add a third Indiana region to his Regional Cities coordinated-development initiative.

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