Indiana News

First 2017 Indiana road funding improvement plan unveiled

INDIANAPOLIS, Ind. (Network Indiana): You’d pay an extra five dollars a month to build and maintain Indiana’s roads, under a plan unveiled by House Republicans.

Republicans are calling for a 10-cents-a-gallon gas tax increase, boosting the total tax to 28 cents, with further increases indexed to inflation and income growth. House Speaker Brian Bosma says the initial increase would compensate for 14 years of inflation since the last increase.

You’d also pay a flat 15-dollar fee when you register your vehicle — electric vehicles would pay 10 times that.

Bosma says the combination of the tax hike and the registration fee would still increase the average Hoosier’s costs by five dollars a month. There could be further costs as the package is fleshed out. The biggest single chunk of funding, more than a quarter-billion dollars a year, would come from earmarking the entire seven-percent sales tax on gas for roads. Currently, nearly two-thirds of that money goes to the general state budget, and would have to be replaced.

Bosma says that discussion will take place in the course of crafting a new state budget, but says the House may revive last year’s proposed dollar-a-pack increase in cigarette taxes.

The plan is the first detailed proposal of an expected four-month debate on road funding. Legislators want a package which raises an average of one-point-two-billion dollars a year over the next 20 years. Bosma says a sustainable long-term funding plan is House Republicans’ “overarching goal” for this year’s session.

The House Republican proposal would also seek federal permission to impose tolls on interstates which don’t have them now. Bosma says he’d like to use that authority to create a dedicated toll lane for trucks, but says that discussion is still in the early stages.

The speaker acknowledges the plan is just the opening bid in a process which will incorporate proposals from the Republican Senate and Governor-elect Eric Holcomb.

Holcomb has said he’ll announce his own plan on Thursday.

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