Northwest Indiana Region likely to see few benefits from Pence-signed roads plan

The state actually needs nearly $300 million each year in additional spending just to take care of what it has, according to a 2014 analysis by the Indiana Department of Transportation.

Spending less will increase the 12.5 percent of bridges and 11.4 percent of roads expected to be in poor condition by 2024.

Under Senate Enrolled Act 67, Indiana's cash-strapped localities will get a combined $430 million of their own income tax collections back from a state holding fund — with a mandate to spend at least 75 percent of the money on roads.

Local governments in Lake County will receive $31.3 million, Porter County units will get $4.3 million, LaPorte County $4.9 million, Newton County $670,000 and Jasper County $10.4 million.

However, accessing the separate $254 million pool of state funds for local roads almost certainly will require Region counties or municipalities with more than 10,000 residents to impose a vehicle excise tax or wheel tax to raise the required match.

Local officials in years past have shown little appetite to assess those taxes on Northwest Indiana motorists, despite state-imposed property tax caps that now severely limit local government revenue.

Moreover, half the state matching funds for local roads are reserved for the 65 Indiana counties with fewer than 50,000 residents, reducing the money available for Lake, Porter and LaPorte counties — assuming they could come up with their local share.

The Republican governor nevertheless proclaimed the road funding laws "a historic investment in local infrastructure" and a "significant investment in our state-maintained roads and bridges."

"I am confident that the resources in these bills will keep Indiana rolling, and will ensure that our third century will be our greatest century yet," Pence said.

A 16-member task force is set to meet this summer to consider how best to fund Indiana's long-term infrastructure needs amid declining federal support and shrinking state gasoline tax collections.

A plan approved this year by the Republican-controlled House for a new stream of permanent road funding through higher gas and cigarette taxes was scuttled due to Pence opposition.