By John Byrne, Post-Tribune staff writer
INDIANAPOLIS -- Democratic lawmakers unveiled a $1 billion statewide road-building proposal Monday with rules practically guaranteeing all steel used in the work would be Indiana-made.
The package also would require 80 percent of the people hired for the two-year road-building binge be able to prove they live in Indiana.
The amendment to House Bill 1656 replaces an earlier Democratic bill that drew fire for being pork-heavy because of 25 specific projects it required receive state funding, including three in Lake County.
Most of the specific building projects are gone from the new proposal, which Rep. Scott Pelath, D-Michigan City, introduced to the Democratic-controlled House Ways and Means Committee.
"Our steel industry, that we've all been very proud of since it landed on the shores of Lake Michigan, has faced many beatings over the years," Pelath said in touting a clause that gives in-state steel a big competitive advantage over imported products.
Agencies would have to use Hoosier-made steel for HB 1656 projects, as long as it is less than 15 percent more expensive than steel made outside the state.
The in-state steel buffer could be increased to 25 percent if the head of the public agency letting the contract determines using Indiana steel would benefit the local or state economy.
A 15 percent preference also applies to bids by in-state construction contractors.
The bill passed Ways and Means by a 15-8 vote, and will head to the full House for consideration.
Republicans were quick to criticize the proposal, especially the bidding preferences.
"15 percent is a $150 million preference on a $1 billion project," said Rep. Jeff Espich, R-Uniondale. "I want to put Hoosiers to work, too, but a $150 million preference is too much. It's unsound public policy."
The $1 billion would be culled from the state's Major Moves fund, proceeds of the lease of the Indiana Toll Road.
$400 million would go to city and town governments based on population, and another $400 million to counties across the state on the same basis. $200 million would go directly to the Indiana Department of Transportation.
The governments would have until January 2011 to appropriate the money for "shovel ready" road or alley construction projects or be forced to return unused funds to the state.
INDOT Commissioner Karl Browning said the diversion of Major Moves funds would imperil many road projects scheduled around the state -- including one at the junction of U.S. 20 and U.S. 35 in Michigan City -- because his agency would not have enough local funds to leverage for sufficient federal matching grants.