Although the state budget has been set, Indiana lawmakers face a major funding issue — how to create additional revenue to repair Indiana roads — according to a Purdue University economist.
The closure of 37 miles of Interstate 65 due to the instability of the Wildcat Creek bridge near Lafayette, which halted northbound travel for about a month last August, recently thrust the longstanding issue into the forefront of priorities for the state.
Following tradition, Larry DeBoer, professor of agricultural economics, opened the Third House session Saturday with a state budget analysis. Third House is a Greater Lafayette Commerce function that allows members to hear from state legislators and share input on pending legislation.
The state faces an estimated $1 billion annual shortfall in revenue needed to adequately maintain state and local roads, according to Build Indiana Council, an Indianapolis-based coalition of transportation construction companies.
One reason is that traditional sources of revenue for roads, such as gasoline taxes, are becoming less reliable, DeBoer said.
The trend has been driven by high gas prices that depressed sales in recent history and cars that have improved fuel efficiency, he said.
"I think if gasoline prices stay down for a while, we will get growth but not enough to solve the problem," he said.