/ Financial / Indiana Passes $1B Highway and Bridge Funding Legislation

Indiana Passes $1B Highway and Bridge Funding Legislation

Matt Ball on March 15, 2016 - in Financial, Transportation

The Indiana Legislature has approved more than $1 billion for a two-year infrastructure funding package to be used on road and bridge projects without an increase in gas and cigarette taxes.

Funding sources include federal money, a state reserve transfer ($490.1 million), a trust fund transfer ($100 million), fees on electric ($150,000) and hybrid vehicles ($3.1 million) and a commitment on an existing 1.5 cents per gallon gas tax ($276 million).

At least half of the $100 million trust fund transfer is required to go to counties with less than 50,000 people and must be used for preserving or rebuilding existing state highways and bridges.

HB1001 reroutes about $230 million from the state’s $2 billion budget reserve for state highways and bridges as long as the amount available at the end of the fiscal year is more than 11.5 percent. The surplus state revenue now is earmarked for automatic taxpayer refunds.

Another $100 million from the Major Moves 2020 Trust Fund will be tapped for maintenance and preservation.

Local governments came away the big winners with about two-thirds of the freed-up money. Communities across the state will divvy up about $254 million in excess reserves and existing sales tax on fuel to maintain and repair roads and byways.

Source: Land Line

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