$418 million proposed in Indiana Senate bill for one-time roads, bridges funding

Senate Bill 67 returns local income tax revenue, currently held in reserve by the state to protect against distribution shortfalls, to the counties and municipalities where the money originated.

Under the plan, at least 75 percent of the returned money would have to be spent on road and bridge projects, or deposited in a local "rainy day" fund. The remaining 25 percent could be used for any other purpose.

"The net result of this is to make a dramatic investment in our local infrastructure at a time when local government has been telling us that this is their top, or among their top, priorities," Hershman said.

Preliminary distribution estimates show Lake County would receive $9.8 million, Porter County $1.7 million and LaPorte County $2.2 million. Payments to Region municipalities range from $4.8 million for Gary to $4,495 for Dune Acres.

"This money, as it is held in trust, does not show on the state's reserve fund balance sheet, and I think it will create the opportunity for improvements, and much-needed improvements, in literally every corner of the state," Hershman said.

Republican Gov. Mike Pence immediately endorsed Hershman's local road funding proposal. Pence has called for spending a portion of the state's $2.1 billion surplus, borrowing $240 million and increasing road funding in future budgets to put $1 billion toward state roads over the next four years.

"Our teams have been working closely on this plan to provide funding at the local level without raising taxes," Pence said. "I will be including this initiative as part of my legislative agenda for the upcoming session and look forward to its passage."

While happy to have the governor's support, Hershman insisted his plan originally was Senate-generated. He also suggested he's not fully on board with Pence's borrowing plan for state roads and bridges.

"I would never say never, but if we have the financial means to pay for it in cash ... I'd prefer to pay for things in cash," Hershman said.

State Rep. Ed Soliday, R-Valparaiso, chairman of the House Roads and Transportation Committee, similarly has cautioned against long-term borrowing for short-term road improvements.

When the Republican-controlled Legislature convenes Jan. 5, Soliday wants lawmakers to devise a comprehensive, sustainable infrastructure plan, instead of relying on one-time funds.

Indiana Democratic Party spokesman Drew Anderson criticized the Hershman and Pence proposals. He said they are intended to "save their careers," rather than meet the state's transportation needs.