House Republican majority rejects plan to provide more state, local road funding

For immediate release:
Jan. 30, 2014

STATEHOUSE – Indiana House Republicans today rejected a plan to provide more than $500 million in existing funds toward immediate state and local infrastructure needs, according to State Rep. Gregory W. Porter (D-Indianapolis).

Porter, ranking Democrat on the House Ways & Means Committee, asked his colleagues in the House to support a plan to transfer $500 million and interest from the Next Generation Trust Fund to help finance critical projects, as well as public transit systems across the state.

However, the House majority chose to reject the proposal in a party-line vote. Porter sought to include the language in House Bill 1002.

“Right now, the state of Indiana faces critical infrastructure needs at both the state and local levels, and we have limited resources available to address those needs,” Porter said.

“By any standard, we need to do more to improve our highways, streets, bridges and sewers, because we are rapidly advancing toward a crisis point in urban and rural areas of Indiana,” he continued.

“In the absence of any serious discussion about revenue sources that might involve tax increases or use of a state surplus that contains billions of dollars, I believe we need to look at all existing possibilities to provide help now.”

The Next Generation Trust Fund was created as a result of the state’s decision to lease the Indiana Toll Road in 2006. Its purpose was to provide a pool of funds designed to pay for road projects years down the road.

“However, it has become apparent that the purchasing power of the money that is contained in Next Generation may not be as great a few years down the road as it is now,” Porter noted. “Indeed, when the next generation arrives, the purchasing power of the Next Generation Trust Fund may literally be pennies on the dollar.”

Porter’s plan was to provide $400 million to the State Highway Fund and $100 million to the Local Roads and Streets Fund. In addition, collected interest on the Fund—which is approximately $25 to $30 million—would be distributed to the Public Mass Transportation Fund for transit systems.

“The problems we are trying to solve here are particularly acute at the local level of government, and if we are able to make substantial strides now, we will prevent the risks of larger problems down the road, when the next generation is in place,” Porter said.

“With the failure of the House majority to take action on this proposal, I fear we are simply forcing action a few more years down the road,” he continued. “Roads and bridges will get a little worse, and the time will come when we will have to do something when a catastrophe occurs, when we could have prevented it from happening.”