Indiana residents may be happy with cheaper gas when filling up their cars. But Indiana road construction representatives are increasingly worried.
Indiana’s gas tax holiday started in April and has already cost the state roughly half a billion dollars. Gov. Mike Braun has said is possible because of a strong state surplus.
But the Build Indiana Council, a group representing the transportation infrastructure industry, warns that the state needs to make changes to its long-term funding model in order to fill the gaps.
Brian Gould is the executive director for the council. He said the state is facing a funding cliff without major legislative changes - and worries about the continued gas tax holiday.
“The average Hoosier right now has saved around $100 so far this summer,” Gould said. “If we continue this much longer without a new plan into the future, I think Hoosiers are going to have to weigh: what’s the benefit?”
Braun has responded to the issue of long-term road funding multiple times while extending the gas tax holiday throughout the summer., He has also worked to make local communities whole for their portions of the revenue lost from gas taxes.
Gould and others worry about the extended holiday, which is now in its fifth month, especially if the legislature doesn’t take up the issue next year.
“No guarantees, right?” Gould said. “I don't have a signed contract from the governor or legislative leader saying yes, on day one we're going to have Senate Bill One that's going to fix this and resolve this for you.”
According to Gould, just maintaining both state and local roads costs over $2 billion each year.
Indiana mostly pays for roads and infrastructure through the currently paused gas and excise taxes, as well as fees to the Bureau of Motor Vehicles. Those taxes are also taking in less revenue as cars move towards fuel efficiency.
That means the state needs to look towards new solutions to maintain and expand infrastructure funding.
“Diversifying our revenue sources to lower our dependence on funds collected through fuel consumption is a requirement for a sustainable, long-term funding plan,” said Richard Hedgecock, the President of Indiana Constructors.
Hedgecock and others say the state needs to implement numerous funding models, from increasing BMV fees to tolling more roads across the state.
Brian Gould, with the Build Indiana Council, said he wants the state to to collect fees based on usage instead of making road funding part of the general fund.
“Those are dollars that go to childcare, healthcare, pre-K, K through 12, all of those other necessary things,” he said. “When you have to weigh those and determine which one's going to receive the funding, it's a very difficult decision for everybody.”
Contact Government Reporter Benjamin Thorp at bthorp@wfyi.org
