IndyGo leadership addressed a bill in the state legislature that could change the way the organization covers costs and restrict funds for two planned transit lines.
The discussion took place at a municipal Corporations Committee meeting Wednesday night. Indy Go leaders talked to Indianapolis City-County Councilors about the measure passed by the Senate, now being considered by the House.
IndyGo President and CEO Inez Evans said there’s nothing in the current law that disallows federal grants to count towards IndyGo’s requirements.
“If SB 141 is passed it would drastically cripple IndyGo and those that rely on mass transit every day,” Evans said.
The Purple Line and the Blue Line have secured millions in federal grants. If the bill passes, those grants would not count for the required 10 percent of operating costs that IndyGo is required to raise. This could put the planned lines in jeopardy.
Evans said current law only says funds must be raised from non-tax, non-revenue sources.
“There is nothing in the current legislation that puts the sole burden of raising funds from the foundation to meet this 10 percent obligation,” Inez said.
Evans told the committee that the bill would could result in reduced free fares and shortened routes.