By Steve Walsh, Post-Tribune staff writer
INDIANAPOLIS — The General Assembly gave the RDA its blessing Tuesday to start spending money.
In February, the Regional Development Authority had been hung up by an opinion from its attorneys that questioned whether the newly formed group had the authority to spend money before a development plan was approved by the state. Under a 2005 law, the Northwest Indiana group has two years to submit a plan to the State Budget Agency.
The response from the House on Tuesday was — it can.
“The vision of the House and the Senate was to create a body for economic development, which spends the money as soon as it becomes available,” said Rep. Ralph Ayres, R-Chesterton.
Rep. Chet Dobis, D-Merrillville, said projects such as expansion of Gary/Chicago International Airport, cannot wait until the RDA completes its two-year plan.
Beginning in January, the RDA began collecting a yearly allotment of nearly $29 million, from a combination of casino money, state revenue and an income tax in Porter County. This money is already committed, even without the infusion of cash from the $3.85 billion lease of the Indiana Toll Road under Major Moves.
The RDA had been scheduled to meet this week in Portage but the meeting was postponed to give lawmakers more time to resolve the question, said Tim Sanders, RDA executive director.
Before Major Moves, Gov. Mitch Daniels signed on to a two-year commitment to fund RDA with $10 million a year with the money coming from existing surpluses along the road.