INDIANAPOLIS -- It won’t be long until Hoosiers feel the benefits and costs of a $1.2 billion infrastructure plan Gov. Eric Holcomb signed Thursday afternoon, along with the state’s two-year budget.
Lawmakers touted the "historic" road funding plan as the first 20-year road funding plan and the largest in the state’s history.
“Today the budget is important; it has critical elements in it, but we believe we’re going to drive Indiana to the next level with House Bill 1002,” House Speaker Brian Bosma (R-Indianapolis) said.
The plan to pay for roads relies on gas tax increases, commercial vehicle cost boost and BMV fees and paves the way for tolls in the future. Leaders from both chambers said the road funding plan is a long term solution, however, they also added that they would have to consider tolling in order to make up enough revenue in the later part of the 20-year plan.
Holcomb plans to have a draft of a toll road plan by the end of 2018.
At the pumps, Hoosiers will see the 10-cent-per-gallon gas tax increase to 28 cents per gallon come July 1. Indiana’s gas tax rate will now be higher than all its neighboring states, according to numbers from TaxFoundation.org.
However, Hoosiers many not even notice.
“It really just depends on the timing of it all,” said Scot Imus, executive director of the Indiana Petroleum Marketers and Convenience Store Association. “Certainly, 10 cents will be going to the government gallon. That’s going to be an impact.”
Ball State economist Michael Hicks doesn't think most average people will notice a gas tax increase, and supported the hike.
"Today the state doesn’t really have a choice rather than to raise taxes in order to have enough revenue to finish I-69 or handle congestion around Indianapolis, around Lake County, around Porter County, around Evansville and both Cincinnati and Louisville," Hicks said. "We’re struggling to build through the builds we need."
Convenience stores near the borders could experience the most costs of the plan, Imus pointed out, as vehicles aim to fill up outside of the state -- especially commercial vehicles.
Average Hoosiers can also expect more fees at the BMV starting at the beginning of 2018. Lawmakers included a $15 vehicle registration fee on all vehicles and a $150 fee on electric cars.
Lawmakers argued Thursday that Hoosiers would notice the benefits even more so -- and soon.
At a news conference Thursday, Holcomb said he expects Indiana Department of Transportation to have a list of projects to prioritize with the new funding by June.
“I can assure you come July, you and all of you, are going to smell asphalt morning, noon and night," Holcomb said.
Holcomb also signed the state's $32 billion two-year budget Thursday, which includes a near doubling of pre-kindergarten funds, money for more direct flights, a state police raise and a $200 million funding boost to the Indiana Department of Child Services.