New law could open way for additional southern Indiana interstate

Late last week, Governor Eric Holcomb signed Senate Enrolled Act 128, also known as the Regional Infrastructure bill, into law. The measure was authored by State Rep. Mike Braun and State Senator Mark Messmer, both Republicans from Jasper. The bill will allow counties, or municipalities, to establish a Regional Development Authority to raise funds specifically for infrastructure projects like highways, bridges, rail lines, airports, public transportation and other infrastructure improvements.

"I was really pleased that it went through," said Representative Braun. "We started working on this bill last session, but didn't put it together until this one."

Braun points out that Indiana has been struggling to come up with funding for road projects. Right now it has money to fund the major ones on the books like the completion of I-69 between Indianapolis and Martinsville, and the new bridge over the Ohio between Evansville and Henderson, Kentucky.

"The problem is there was not enough money to get any other major projects past the talking stage," he said. "This is a long-term funding bill that will allow for the establishment of Regional Development Authorities that can pay for some of the road funding."

Under the bill cities and counties could take money from any number of sources, including general funds, rainy day funds and other funds to put together money for a major project. The project would go to the Indiana Department of Transportation where it would be vetted, and if acceptable, the local funding could be used to help cover the state matching funds on a major project.

"Most big projects in Indiana are built with federal highway funds," explained Braun. "The state normally has to cover about 20 percent of the cost. The Regional Development Authority fund would be used to off-set the funding for the state match. This law gives regional areas additional tools to help fund their specific infrastructure projects. By providing new ways for local governments and businesses to have skin in the game, we can encourage them to prioritize projects that have a greater economic or regional impact while also working to improve the quality of roads and bridges in their areas."

Mid-State Corridor

Officials in Dubois and surrounding counties have a specific project they wish to push under the new law. The Mid-State Corridor would connect onto I-69 somewhere in Daviess County and extend south to the Ohio River to Owensboro, Kentucky. Along the way it will create interstate access to Martin, Dubois, and Spencer counties.

"We have talked about this project, especially a bypass connecting the industrial areas in Huntingburg and Jasper, forever," said Braun. "We can now get this going. We have already had a meeting to begin forming the RDA. This law is like a green light to work on the Mid-State Corridor. I think it will come together pretty quickly in Dubois and Spencer counties. There is still some question where it will go once it gets to the north of Dubois County."

The Regional Infrastructure Bill is a piece of unique Indiana legislation. Braun says there is nothing like it elsewhere in the country. The Indiana Legislature normally does not embrace new ideas the first one or two times through.

"I am really pleased that it went through on the first attempt," he said. "We were lucky. Senator Luke Kenley (Chairman of the Senate Appropriations Committee) liked it and became a supporter, then INDOT got on board. The Indiana Finance Authority liked it. When we removed the provisions for a referendum and potential property tax increases, the Farm Bureau got on board and then came a cascade of support. I think the state liked the idea of local governments getting involved in infrastructure projects and being willing to put up some of their money to do it."

The Regional Infrastructure law came during the same session at House Bill 1002 which will raise billions of dollars in new funding for Indiana roads and bridges through a higher gas tax and increases in registration fees for vehicles.

"The Regional Infrastructure law is a great companion to HB 1002," said Braun. "The bill will help fast track some projects that have not gone anywhere even though they have had local support."