Hoosiers are paying one of the nation’s largest gasoline price increases this summer. They also should see improvements to their crumbling roads and bridges.

That is the trade-off for living under the taxing philosophy of the Indiana state government. Conservative fiscal policies have cut corporate and business taxes to foster economic growth, which — in theory — benefits average people through jobs and financial opportunities. Meanwhile, the state sales tax, paid by all, increased in 2008 to offset a cut in property taxes. The state gas tax, paid by all motorists, rose a dime to 28 cents per gallon last year, and the Legislature added an annual adjustment to account for inflation, capped at a penny.

That extra 1 cent goes into effect July 1, making the gas tax 29 cents higher than it was before the General Assembly voted for the increase in its 2017 session. The tax boost, coupled with global fuel market forces, has raised the average gas price in Indiana to $2.83 per gallon, according to AAA figures as of Friday. (Terre Haute’s price was $2.72.) A year ago, gas cost $2.21 a gallon at Hoosier pumps. (The current gas price includes 15.9 cents per gallon to cover Indiana’s 7-percent sales tax, the Northwest Indiana Times reports.)

Lawmakers also raised vehicle registration fees by $15 last year, with hybrid owners paying $50 more and electric-car owners $150 more. Gov. Eric Holcomb and the Legislature opted for that tax formula to fund necessary, long-overdue upgrades to Indiana roads and bridges.

The state had not increased its gas tax since 2003, leaving it at 18 cents a gallon for 14 years. Roads, bridges and overpasses deteriorated in that time span. The state received a D-plus grade in the American Society of Civil Engineers 2017 Infrastructure Report Card.

Wabash Valley motorists that drive Interstate 70 daily already understand the sad shape of Hoosier roads, regardless of the ASCE report.

Action was needed. Holcomb and General Assembly leadership came up with a gas tax increase plan that garnered enough support from tax-reluctant conservatives in the ruling Republican Party to pass, and begin funding highway and bridge renovations at adequate levels. The state that touts itself as the “Crossroads of America” desperately needs the infrastructure infusion to legitimately wear that nickname.

Those extra taxes and fees are estimated to generate $1.2 billion a year — $850 million annually for state highways and bridges, and $350 million for county and city roads and infrastructure. The funding will total $32 billion overall through its 20-year span.

Higher gas costs impose a burden, but Hoosiers and travelers to this state need and deserve safe, reliable highways, county roads, city streets, interstate exits, bridges and overpasses. The state’s 2017 roads plan, with the inflation-rate formula that triggers this summer’s 1-cent gas tax increase, should give drivers and their passengers a sense of confidence as they navigate Indiana highways and byways. That confidence, absent for too long, validates the higher prices at the pumps.
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