Indiana’s Track Record of Strong Road Funding

Indiana’s Track Record of Strong Road Funding

Tuesday, December 1, 2015

Indiana, often labeled the “Crossroads of America,” is one of many states across the nation grappling with the significant complexities of road funding.

Over the past decade, the emergence of fuel-efficient vehicles and reduced fuel consumption have led to dwindling gas tax revenue for the maintenance and upkeep of roads. A gridlocked Congress in Washington, D.C., has yet to address federal highway funding shortfalls, which has disproportionately affected Hoosiers.

However, the Indiana General Assembly has taken innovative strides to address this challenge. While other states have spent the better part of a decade struggling to stay afloat, Indiana has been a leader in infrastructure investments.

Since 2013, the Republican-authored state budgets have provided over $1.2 billion in new road funding by:

Authorizing $600 million for the Major Moves 2020 Fund, intended for highway expansion projects;

Setting aside one percent of state sales tax revenue for roads, generating $70 million per year in new road funding – a total of $210 million through the current fiscal year; and

Eliminating Motor Vehicle Highway Fund appropriations for non-road-related expenses, generating $450 million in additional money since 2013.

Major Moves, an extensive plan made possible in 2006 by the long-term lease of the Indiana Toll Road, invested $2.6 billion in Indiana roads without incurring any debt or increasing taxes.

In conjunction with traditional road funding mechanisms, Major Moves allowed the Indiana Department of Transportation (INDOT) to provide an average of $1 billion per year for road construction from 2005 to 2012.

In addition to these investments, Gov. Mike Pence recently announced his 21st Century Crossroads proposal, which would provide another $1 billion for road projects over the next four years without raising taxes on Hoosiers.

While building and maintaining our roads will always present monetary challenges to policymakers, it’s clear from Indiana’s track record and plans for the future that this issue is a top priority.

Senate Republicans are dedicated to ensuring Indiana’s transportation infrastructure needs are fully funded – our reputation as the Crossroads of America depends on it.

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