Indiana House plan dangles $110 million for NWI roads

BY PATRICK GUINANE, Times of Northwest Indiana
pguinane@nwitimes.com

INDIANAPOLIS | Northwest Indiana would receive $110 million for local road projects under a $1 billion state stimulus package that cleared the Indiana House on Tuesday in an 88-11 vote.

"This bill can put Hoosiers to work right away," said the sponsor, Rep. Terri Austin, D-Anderson. "We can put between 40,000 to 50,000 Hoosiers to work,"

House Bill 1656 would, during the next two years, send cities and counties $500 million in federal highway funds, including anticipated stimulus dollars, and provide another $500 million by cashing out an Indiana Toll Road lease trust fund.

But first the plan must survive the Republican-ruled Senate. Senate President David Long, R-Fort Wayne, already has ruled out tapping the Toll Road trust fund, which was created in 2006 as an interest-earning perpetual reserve.

The House plan, a feel-good vote for legislators who want to revive a state saddled with its highest unemployment rate in nearly a quarter century, also may be too large for the state to afford. However, the federal stimulus package being debated by Congress does promise about $330 million for local road projects.

The state legislation includes another $40 million for university projects, $30 million in worker retraining scholarships and $20 million for engineering work. And it contains provisions requiring state agencies to give at least a 15 percent contract bidding cost preference to Hoosier companies, including region steel mills.

"We defend Indiana steel," said Rep. Scott Pelath, D-Michigan City. "We defend something that really is a great source of pride here and a part of our state's identity."

While the $1 billion plan promises $14.5 million for Gary roads, Rep. Vernon Smith, D-Gary, complained that it doesn't specifically address the pothole-ridden stretch of Chase Street that last month claimed the lives of an East Chicago couple.