Funding Road Construction And Repairs Could Mean Higher Gas Prices

Hoosiers could soon see a rise in gas prices in an effort to generate more funding for state infrastructure.

House Bill 1104, which was presented to the House Roads and Transportation Committee on Wednesday, would require the Indiana Department of Transportation to hire an outside company to conduct a study on ways to increase funds for building and repairing Indiana roads.

The bill specifies that the study would look at increasing the state excise gas tax as a method to generate funds.

Kevin Brinegar, president of the Indiana Chamber of Commerce, said the rise of fuel-efficient and electric-powered cars has resulted in a decrease in revenue from gasoline and diesel fuels over the past 10 years.

“The cost of maintaining and creating new roads has certainly not gone down or stayed level, so our purchasing power has been eroded substantially,” Brinegar said.

Raising the gas tax could help to supplement the loss of revenue from gasoline and diesel fuels.

The study would also look at charging a flat per-vehicle rate for Indiana drivers as a method of raising money.

Rep. Ed Soliday, R-Valparaiso, who authored the bill, said the average Hoosier already pays roughly $100 a year to use Indiana roads.

“They pay that much for their cellphone a month and probably twice that much for their cable TV,” Soliday said. “The problem is they don’t know that that is what value they get out of the tax dollars they paid for road funding.”

INDOT Legislative Director Nick Barbknecht said the department has an existing relationship with Purdue University. If the bill is passed, Barbknecht said INDOT is considering hiring Purdue to conduct the study.

Soliday said he thinks the study is essential to helping the state maintain its status as the Crossroads of Indiana.

“We have folks talking about – including our governor – about being the best infrastructure in the Midwest,” Soliday said. “We want to do that.”

Soliday was reluctant to estimate the cost of the study, but finally said it could be around $2-3 million. But, he said INDOT’s commissioner assured him the department has enough money to fund the study.

“That’s one of the least of my worries,” Soliday said.

Soliday said his goal is to have 92 percent of Indiana roads in fair or better condition.

The study would be completed in two years.

The bill passed out of the committee unanimously and now moves to the full House for consideration.

Olivia Covington is a reporter for TheStatehouseFile.com, a news website powered by Franklin College journalism students.