Statehouse plan would steer millions to Lowell South Shore line, Indianapolis area

BY PATRICK GUINANE, Times of Northwest Indiana
pguinane@nwitimes.com

INDIANAPOLIS | A proposed South Shore commuter rail extension to Lowell would get $15 million in federal stimulus dollars to start engineering and environmental work under a Statehouse plan that advanced Wednesday.

"This is just what I would consider start-up money," said state Rep. Chet Dobis, D-Merrillville. "If the truth be known, I'm looking for $350 million."

The much larger sum is needed to plug a funding gap in a $1 billion plan to build South Shore lines south to Lowell and east to Valparaiso. But Dobis has yet to float a funding proposal this legislative session that could cover that price tag.

The $15 million in planning money was added Wednesday to House Bill 1607, along with $5 million to make South Shore upgrades in Michigan City and $15 million to build a more direct route into the railroad's eastern terminus at South Bend Regional Airport.

The legislation, which advanced to the full House on a 14-7 committee vote, also would provide $15 million to help plan a light rail system for the Indianapolis area and $3 million for IndyGO, the capital city's bus system.

The proposal would allocate $53 million of the $84 million in transit dollars Indiana would receive from the federal economic stimulus package. Lawmakers from both parties argued against giving 60 percent of the money to two regions.

To avoid potential legislative roadblocks ahead, Democrats also added the funding language to House Bill 1660, which would allow counties to establish regional transportation districts. Those districts could pursue local income taxes for funding, though vehicle registration fees and restaurant sales taxes have been dropped from the proposal.