INDIANAPOLIS — The Indiana Senate agreed Tuesday to return $430 million in local income tax revenue, held in reserve by the state, to local governments for road and bridge improvements.
Under Senate Bill 67, which now goes to the House, Lake County and its municipalities are slated to receive $28 million, Porter County governments $4.3 million, LaPorte County $4.7 million, Newton County $530,000 and Jasper County $17.7 million.
"This not only provides an important injection of funds at the local level, but it provides us an opportunity to have a little breathing room for the discussion of longer-term transportation issues," said state Sen. Brandt Hershman, R-Buck Creek, the sponsor.
Senate Republicans have declared local road funding their top priority for the 2016 legislative session. Hershman's plan also has been endorsed by Republican Gov. Mike Pence.
Pence additionally is urging lawmakers to approve Senate Bill 333, his plan to borrow and spend $1 billion in one-time funds for state road maintenance.
The local roads measure passed the Senate 49-1. State Sen. Mark Stoops, D-Bloomington, said he voted against it because he believes if the state is giving locals their own money back, local officials should decide how it is spent.
That opinion is shared by House Republican leaders. They soon are expected to advance House Bill 1110, which similarly reduces the local income tax reserve held by the state, but returns the excess without mandating it be spent on roads and bridges.
Instead, House Republicans are backing House Bill 1001, a long-term plan to fund state and local road improvements mainly through targeted tax hikes on cigarettes and gasoline.
That legislation is set for a vote Wednesday by the House Roads and Transportation Committee, led by state Rep. Ed Soliday, R-Valparaiso.
Soliday said he expects the various road funding plans will be the subject of debate and negotiation at the Statehouse probably until just before the Legislature adjourns in March.