Lawmakers See Rough Road Ahead For Transportation Funding
9/6/2012
NWI Times
INDIANAPOLIS -- With money from the Indiana Toll Road lease set to run out in the next three years, a panel of state lawmakers Thursday began looking at how Indiana will pay for roads and bridges in the future. They discovered it won't be easy. New federal fuel-efficiency standards are expected to reduce gasoline tax revenue, typically the primary funding source for transportation projects. In addition, congressional Republicans have vowed to significantly cut federal spending, likely reducing federal funds available for state roadwork. Meanwhile, the Democratic and Republican candidates for Indiana governor both have said they plan to reduce taxes, which could reduce state funding for roads and bridges. At the same time, many local governments are already cash-strapped due to property tax limits. State Rep. Ed Soliday, R-Valparaiso, said the goal of the House-Senate infrastructure study committee is to "get past the political hyperbole" and determine "how big is the problem and what do we need to do to fund it long term." "We're trying to take a more empirical approach," Soliday said. One possibility is greater use of public-private partnerships for toll-road projects, such as the pending deal to rebuild the Cline Avenue Bridge in East Chicago. Lawmakers also heard details about a per-mile vehicle tax, instead of or in addition to the gasoline tax, as well as new technology to make roads last longer. Link
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