Indiana GOP legislators push to fast-track road dollars

On Tuesday, Statehouse Republicans promised to push for a one-time windfall of $418 million in road money during the Legislature's busy, 10-week session.

Their proposal fast-tracks the release of local income tax money back to communities where it was collected, tying most of the dollars to infrastructure repairs.

“It’s a significant influx of money in a short amount of time,” said Sen. Brandt Hershman (R-Buck  Creek), author of the measure and chairman of the Senate Tax and Fiscal Policy Committee.

The fast, short-term nature of the proposal worries some local leaders, though. They fear it will be a quick fix that doesn’t address the long-term needs of the local governments that maintain about 80 percent of the state’s roads.

“It’s an opportunity to do a little bit of catch-up, but there needs to be an ongoing method for funding roads,” said Larry Hesson, a Hendricks County councilman and board member of the Association of Indiana Counties.

The proposed measure also takes criticism because it distributes the most money to some of the state's richest communities.

The affluent suburb of Carmel, with a population of 85,000 and the highest per-capita income in the state, will get $15 million. Fort Wayne, the state’s second-biggest city with 256,000 people, will get about half that much.

The discrepancy is because the road-funding measure isn’t based on need or population. Instead, it’s an early release of local tax revenues collected by the state.

“It’s not the most fair and equitable way to fund roads,” said Hesson, whose small but affluent county could end up with a $7.8 million infusion.

Under current law, the state usually holds local income tax money then distributes the reserves once they've reached more than half of a local government's annual receipts.

The Republican-controlled Legislature is likely to pass the measure, allowing for a one-time distribution, to get the money out before November's elections. All 150 legislative seats and the governor’s office will be up for election.

At least 75 percent of the money would have to be spent on infrastructure or put into a local rainy-day fund, as part of the measure. Local leaders can decide how to spend the rest.

Senate Republicans dubbed the measure their top priority in the session.

It comes as lawmakers also look for ways to raise an estimated $1 billion in new money needed each year to maintain the state’s infrastructure.

Long-term road funding proposals include a hike in the gas tax, which is opposed by Republican Gov. Mike Pence.

Republicans in both the House and the Senate have said road funding is a key issue this session.

But their efforts may be overshadowed by more contentious topics, including legislation to add sexual orientation and gender identity to the state’s civil rights law.

GOP leaders said Tuesday the rights bill will be debated, but they indicated that passing it won’t be among their top priorities for the session.