INDIANAPOLIS -- Northwest Indiana residents would have the final say on whether their counties join a regional transportation district with taxing powers under an amendment adopted by the state Senate Tuesday.

House Bill 1607 underwent several changes, including being stripped of language mandating Lake, Porter, LaPorte and St. Joseph counties first adopt several other income taxes before enacting a 0.25 percent income tax for transit projects.

The Senate also modified the bill to require countywide ballot referendums as part of the May 2010 primary elections in the four counties. If a majority of voters in at least two of the four counties assented in the referendum to join the transportation district, it would be created in all counties with majority support.

Sen. Luke Kenley, R-Noblesville, offered the referendum language. He said he supports the idea of a referendum in part because of Northwest Indiana government's tendency to be at odds with residents' wishes.

"One of the problems I think in Northwest Indiana is there's a lot of conflict among people and distrust of units that don't really do what the taxpayer wants," Kenley said. "And I felt like if the taxpayer had the right to say, right up front 'Do we want this or not?' it either lends credibility to the idea or shows they don't want the idea."

Kenley said he abandoned the possibility of a single, four-county referendum in the interest of giving voters as much say-so as possible.

"I thought with the sizes being so different in the counties, that each county needs to be able to decide for themselves whether or not they want to give up a little autonomy to join a regional transportation authority," Kenley said. "It's really a new form of governance, so I thought each county was entitled to make their own decision."

The board would consist of a person who sits on the county council and county board of commissioners from each member county, as well as one member appointed by the governor.

It would have the power to levy an income tax up to 0.25 percent on county residents, to be used to pay for construction, maintenance and operations of regional mass transportation projects across member counties.

Counties joining the regional district would be required to remain part of the organization for as long as it exists.

Sen. Karen Tallian, D-Portage, also offered a successful amendment to push back the board's formation from January 2010 to January 2011, saying Northern Indiana Commuter Transportation District officials need more time to prepare.

Tallian said the mandate to enact other taxes was the "most toxic" language in the bill, and now that it's gone, the package stands a chance of passing.

But HB 1607 still faces tough negotiation before the end of the session, Tallian said.

She stopped short of endorsing the idea of a referendum, saying she needs to study the bill further.

HB 1607 is eligible for third reading today, which is the deadline for bills to get voted out of the respective houses. If it passes the bill would go to conference committee for further negotiation.

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