BY PATRICK GUINANE, Times of Northwest Indiana
pguinane@nwitimes.com
INDIANAPOLIS | State Rep. Chet Dobis, D-Merrillville, offered a new route Thursday to South Shore commuter rail expansion, ditching unpopular tax-hike proposals in favor of a plan to intercept local sales tax collections that now flow to Indianapolis.
The plan met praise from region lawmakers, some of whom are guarded about the likelihood of tapping the state funds.
The veteran lawmaker debuted legislation to divert 12.5-percent of the sales tax money Lake and Porter counties send the state, a move that would generate $30 million a year. It's an attempt to put to rest contentious talk of raising local taxes to cover a $350-million shortfall in the $1-billion plan to extend South Shore service to Lowell and Valparaiso.
"There's not another penny of new taxes that has to be raised to support this project if we succeed in passing it in this manner," Dobis said. "I think a new tax sounded a death knell on this project. But this new twist, I think, has given it new life, and I would hope that at least a portion of the naysayers -- those who are against it for tax reasons -- will be satisfied now."
Known as the Westlake Corridor expansion, the project would extend one line south through Munster, Dyer, Schererville, St. John, Cedar Lake and Lowell and another east to Highland, Griffith, Merrillville, Hobart and Valparaiso.
U.S. Rep. Pete Visclosky, D-Ind., has pressed region lawmakers to come up with a local funding match so that the region could tap $500 million in federal funding for the rail project.
"There is a cost in doing nothing and just standing still waiting for something to happen," Visclosky said Thursday at a town hall meeting in Valparaiso.
The congressman praised Dobis's plan, which would turn all of Lake and Porter counties into a sale tax increment financing, or STIF district. The state sales tax money would be diverted toward the South Shore project until the construction is paid off, likely within 20 to 30 years.
Region legislators lauded the funding plan but warned it won't be easy to snag $350 million in state money.
"I think it's a very innovative way of funding the project," said state Sen. Sue Landske, R-Cedar Lake. "I know that the governor and (Senate Tax Chairman Luke) Kenley have both said they aren't in favor of STIF districts, but I think they can be convinced otherwise."
A spokeswoman said Gov. Mitch Daniels plans to meet with Dobis to discuss the South Shore funding plan.
Reactions from Northwest Indiana legislators
Rep. Ed Soliday, R-Valparaiso: "It brings Northwest Indiana money back to Northwest Indiana, and we don't have to tax our people. I think it's a good plan, but it's not going to be real super easy to get through (the Legislature)."
Rep. Earl Harris, D-East Chicago: "Any time you can get money coming from the state toward Northwest Indiana it's not a bad situation."
Rep. Greg Simms, D-Valparaiso: "I'm backing it 100 percent because there's no new tax. A lot of people are in favor of (South Shore expansion) as long as it doesn't cost them any more money. This will do just that."
Sen. Earline Rogers, D-Gary: "I think the STIF concept is a good way for us to get those dollars without going back to taxpayers, who are already overburdened, and ask them to absorb another tax. And I think we can make a good case to the Legislature."
Sen. Ed Charbonneau, R-Valparaiso: "I think there's been pretty much support for the (South Shore expansion) concept. The sticking point has always been -- How do we fund it? Particularly at a time when we're facing the property tax crises that we're facing. This seems to be a pretty unique way to address the situation, provide the funding, without imposing any more of a tax on the citizens of Lake and Porter counties. I think it's a stroke of genius."