February 28, 2020

Amendment To State Legislation Takes Aim At IndyGo

A state law passed in 2014 cleared the way for Indianapolis to increase income taxes to help fund IndyGo operations and new services like the Red Line. It also required IndyGo to match 10 percent of that new tax revenue through private funding. - FILE PHOTO: Erica Irish/WFYI

A state law passed in 2014 cleared the way for Indianapolis to increase income taxes to help fund IndyGo operations and new services like the Red Line. It also required IndyGo to match 10 percent of that new tax revenue through private funding.

FILE PHOTO: Erica Irish/WFYI

The Indiana Senate approved an amendment this week that, its author says, would spur IndyGo to comply with state law requiring it to raise private money to help fund its operations.

The amendment to HB1279, authored by Republican Sen. Aaron Freeman (Indianapolis), directs the state to withhold 10 percent of IndyGo’s local income tax revenue and puts the brakes on future expansion projects until the agency raises the amount of private funding outlined in a 2014 state law.

That law cleared the way for Indianapolis to increase income taxes to help fund IndyGo operations and new services like the Red Line. It also required IndyGo to match 10 percent of that new tax revenue through private funding. 

IndyGo hasn’t raised that money, yet, but says it recently started a foundation that will allow it to raise private funding.

The legislation still needs final approval in the House and Senate.

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