Wabash Valley legislators not all sold on gas tax increase

A long-term funding plan to improve and maintain roads is expected to be a major issue this session, local legislators agree. Where they disagree is whether they can support such a plan, at least what’s been proposed.

A legislative task force led by key Republican budget-makers recommended late last year that the state make big moves to increase road funding by $1 billion a year.

House Bill 1002 calls for a 10-cent per gallon increase in the gas tax, boosting it to 28 cents from the current 18 cents per gallon. It includes an additional $15 in license plate fees, other vehicle-related fees and the possibility of interstate tolls. The gas tax has not been increased since 2003.

The proposal also calls for indexing the gas tax for the future – which means adjusting the rate each year based on inflation and other factors.

Funding for roads “will definitely be a big part of” the legislative agenda this session, said State Sen. Jon Ford, R-Terre Haute.

He said he’s “not a big fan of an increase in the gas tax.” Last year, a proposed gas tax increase did not pass in the Indiana senate. The increase being proposed “seems like a lot — so fast,” he said.

He wants to study proposed legislation and “make sure we need more money for roads.” He also expects state agencies to work more efficiently. Based on problems and delays he’s seen with construction of the 641 bypass, “I’m not sure throwing more money at the problem solves it,” Ford said.

State Rep. Bruce Borders, R-Jasonville, said “it’s too early for me to say I’m on board ... Typically my default button is toward no new taxes.” He said he’s promised “to hear what they have to say and keep an open mind.”

He believes government “will typically gobble up what you give it.” Authors of the road funding plan say there is no other way to come up with the revenue, but “I’m not so sure about that,” Borders said.

He said he’ll do his homework first “to make sure there are no other alternatives.”

State Rep. Clyde Kersey, D-Terre Haute, said “the biggest issue right now is the highway funding bill. It’s something we’ve needed for a long time and both parties have neglected maintenance of our highways. ... We knew the last session and a few before that sooner or later we would have to deal with passing a funding bill to repair and provide maintenance of our highways.”

He believes increased revenue for roads is needed but also is concerned about the cost and impact on middle class and lower income, particularly if the gas tax is increased.

The current bill “will see a lot of changes before it comes to the house for a final vote,” he said. A number of legislators, both Republicans and Democrats, have signed “no tax increase” pledges. “I don’t see them voting for it,” he said.

Kersey is also not sure the public would support tolling of interstates, which first would require a waiver from the the federal government.

Republicans have supermajorities in both the house and senate; in the house, Republicans outnumber Democrats 70 to 30, while in the senate, Republicans dominate 41 to 9.

Terre Haute casino, food & beverage tax

Ford’s bill to permit the construction of a casino in Terre Haute has already garnered much local attention. It would allow the owner of Rising Star Resort and Casino in Rising Sun to relocate up to half of its state-approved gambling games to a new gaming, dining and hotel venue here.

Ford has said it would provide an economic boost to the area with much-needed tax revenue, economic activity and jobs. The $100 million to $150 million casino would create a projected 750 casino jobs, Ford said.

Meanwhile, State Rep. Bob Heaton (R-Terre Haute) plans to file legislation for a food and beverage tax for Terre Haute and Vigo County. Revenue generated would help bridge a financial gap for the renovation of Hulman Center at Indiana State University, with an attached new convention center.

The bill calls for a 1 percent food and beverage tax, which could generate between $1.4 million and $2.1 million annually. That funding would go directly to the Capital Improvement Board, which oversees the Hulman Center project and its long-term maintenance.

The Indiana General Assembly has approved $37.5 million of the $75 million project that includes an attached two-story convention center, with a main floor meeting space with up to 1,250 seats.

House members have until 2 p.m. Tuesday to file bills.

Kersey said he’s carrying two bills that he hopes will encourage greater voter turnout in elections; in the 2014 general election, Indiana had the lowest voter turnout in the nation.

One of the bills would keep polls open from 6 a.m. to 8 p.m. to give people more time to vote on election day, and it also would allow same-day voter registration. Now, the registration cutoff is 30 days before the election. The other bill calls for people to automatically be registered to vote when they get their driver’s license renewed, unless they opt out.

“I don’t know whether either one will go anywhere but I felt I should try to do as much as I can” to encourage people to vote, Kersey said.

Education issues

Gov.-elect Eric Holcomb wants to change the state’s top education official into an appointed position; currently, the state superintendent of public instruction is elected.

Ford supports the proposal. In many states, the state superintendent is appointed by the governor, he said. “I think it will happen,” he said, and he believes it will help “take the politics out of education.”

On another education issue, he has authored a teacher evaluation bill that would allow school districts to take ISTEP [or future achievement tests] out of the evaluation process; it would be up to the school district. Under current law, use of the test is required as part of a teacher evaluation. He has been told it will receive a hearing Wednesday.

Another bill — yet to be filed — would postpone school letter grades until 2020. “Until we can get ISTEP fixed, we shouldn’t hold schools accountable,” Ford said

Kersey supports legislation to correct the current teacher performance grant program; while it is supposed to promote great teaching, in 2016 it drew heated criticism for channeling funds disproportionately to wealthier school districts. Carmel Clay Schools received an estimated $2,422 per teacher, the Vigo County School Corp. received an estimated $278 per teacher, and some districts didn’t receive any funds.

Schools receive the bonuses based on ISTEP student test scores and graduation rates. “I think both [Republicans and Democrats] realize we need to work on that,” Kersey said. He believes changes will be made to make the program more equal.

He’s also interested in a bill that would re-establish a small school grant for districts that have enrollment of fewer than 2,400 students. A few years ago, smaller districts saw funding cuts aimed at forcing them to consolidate, Kersey said. With House Bill 1143, “A few legislators are trying to save those small schools,” he said. The bill is authored by Rep. William Friend, a Republican (of Macy).

Kersey hopes it signals a direction more supportive of public schools, and a step back from expansion of charter schools and vouchers.