BY PATRICK GUINANE, Times of Northwest Indiana
pguinane@nwitimes.com
INDIANAPOLIS | Northwest Indiana legislators will huddle today in an attempt to settle a $350 million question that's lingered for months.
On the eve of the 2008 legislative session, the delegation has yet to decide on how to pay for plans to extend South Shore commuter rail service to Lowell and Valparaiso. Meanwhile, some legislative support for the $1 billion project is eroding, at least among lawmakers from northern Lake County.
"My constituents have made it loud and clear that they see no benefit accruing to them from the extension of the South Shore to Lowell and Valparaiso," said state Sen. Earline Rogers, D-Gary. "It's hard for me to put together an argument for my constituents to pay a new or increased tax."
But proponents cite a study that shows as many as 26,000 jobs would be created and millions of dollars in new business generated annually as a result of the extension.
Federal dollars would cover half the project and the Northwest Indiana Regional Development Authority would chip in $150 million, which leaves a $350 million shortfall.
Lawmakers have discussed creating income taxes in Lake and Porter counties, imposing a $50 annual vehicle registration fee or increasing local taxes on gasoline and diesel fuel. U.S. Rep. Pete Visclosky, D-Ind., scheduled a sit-down this morning in Merrillville in the hopes of settling the funding question among Northwest Indiana's delegation.
"We are still working and trying to find a method of funding this that will be acceptable," said state Sen. Karen Tallian, D-Ogden Dunes. "It has been a real puzzle, and I understand that people are not really wanting to see anything that will raise taxes this year. All I can say to those people is: We do not yet have a bill, so please keep an open mind until you're given something real."
State Rep. Chet Dobis, D-Merrillville, has said he will sponsor the eventual legislation, which must be filed by Jan. 15. Tallian said the so-called wheel tax of $50 that Dobis floated last year appears dead, and at least one lawmaker said supporters seem to be leaning toward a fuel tax.
State Rep. Ed Soliday, R-Valparaiso, said it would take a 6-cent-per-gallon tax on gasoline and diesel fuel -- on top of 36.4 cents in existing state and federal taxes -- to raise the $30 million a year needed for South Shore expansion.
"Even at 6 cents you're still cheaper than Chicago," Soliday said. "Whatever package you wrap (the required tax increase) in is all political. If you're going to do it, you have to stand up to the taxpayers and say it's worth $100 of your money. And I believe it is."
But lawmakers from northern Lake County, including Rep. Dan Stevenson, D-Highland, and Rep. Charlie Brown, D-Gary, don't want to stick their necks out for an election-year tax increase for a project benefiting southern Lake County and Porter County. What's more, the thrust of the legislative session, which starts Tuesday, will be attempts to curb rising property taxes.
"It's going to be a hard sell to say 'Yes, yes, yes' on tax, tax, tax," Brown said.Region legislators will gather today to discuss how they might pay for plans to extend South Shore commuter rail service to Lowell and Valparaiso. Some northern Lake County legislators say they are not excited about the plan, but southern Lake County and Porter County lawmakers see benefits. Federal dollars would cover half the project and the Northwest Indiana Regional Development Authority would chip in $150 million, which leaves a $350 million shortfall.