State road plan to send $1 billion to local governments for road, bridge projects

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

INDIANAPOLIS | Republicans and Democrats in the Indiana House collaborated Thursday on a "Kumbaya moment" that could send local government $1 billion to address their road and bridge construction needs.

The House voted 100-0 to adopt a Republican plan that would split $250 million in state highway funds and $250 million in anticipated federal stimulus dollars between cities and counties.

But the detente dissolved minutes later when Democrats, by a voice vote, tacked on their plan to cash out a $500 million trust fund created via the $3.8 billion Indiana Toll Road lease and add the money to the local roads bonanza.

"I think we need to get dollars in the hands of the locals. There's no question we need to do that," said Rep. Ed Soliday, R-Valparaiso. "I wasn't happy about the (Democratic) amendment because I think you need to preserve something for the future. I hate to steal the nest egg until the wolf is really at the door."

Republicans created the so-called "next generation" trust fund in 2006 with the intent of never tapping the $500 million in principal. But Rep. Terri Austin, D-Anderson, countered that "sometimes sacred cows make the best hamburger."

She noted that the account is earning a paltry 2.3 percent investment return and said investing a total of $1 billion in road construction would create an estimated 50,000 jobs. State unemployment is at 8.2 percent, Indiana's highest jobless rate since February 1985.

The road funding legislation, House Bill 1656, actually contains a drafting error that would have it steer a total of $1.5 billion to cities and counties over the next two years. Republicans plan to offer an amendment as soon as Monday clarifying that their portion of the plan is intended to send local government $500 million total, not that much in each of the next two years.

An earlier $800 million version of the legislation promised $19.2 million for Porter County and $81.8 million for Lake County. Local estimates were not available Friday for the new $1 billion proposal.