INDIANAPOLIS — Legislative leaders struck a road funding deal Wednesday pledging almost $1 billion over the next two years for local and state roads.
The deal received approval by both majority caucuses in the Indiana House and Senate and a final vote is expected Thursday.
The bill will include $42 million for a third Regional Cities Initiatives program and $10 million for Speaker Brian Bosma’s teacher scholarship bill, which will both come out of Gov. Mike Pence’s tax amnesty program.
Both Bosma (R-Indianapolis) and Senate Leader David Long, R-Fort Wayne, said the money for roads will come from state reserves and the state taking an extra 1.5 cents of the sales tax on gas out of the General Fund and into the state’s road and bridge fund. The excess local option income tax included in Senate Bill 67 will also be absorbed into the roads package, bringing more than $400 million to local efforts.
The House Republican’s push for a more permanent funding source via a hike in Indiana’s fuel and cigarette tax is over for now. The tax increases are not included in the agreement.
Instead, the task force advocated for by Sen. Luke Kenley, R-Noblesville, will be created to look for a permanent solution next year.
Bosma said the deal takes care of some issues the state is facing currently and makes sure the problem will be tackled when the General Assembly passes the 2017-18 budget.
“It addresses immediate needs, it meets some of our long-term goals and ensures that everyone is at the table in the budget session to work on the longterm issue,” Bosma said.
The specific dollar breakdowns by year and the state and local split will be revealed Thursday during the conference committee discussion. Bosma did say part of the money will be spent during fiscal year 2017, which begins in June.