Road Funding Legislation Cruises Through Senate Committees

INDIANAPOLIS -- Tuesday was a good first day in the legislature for local and state road funding bills supported by Gov. Mike Pence. 

Pence’s road funding plan uses $241 million from the state’s budget reserves to immediately fund state road and bridge maintenance.  It also provides $240 million  through bonding -- which some lawmakers balk at.  Their concern is paying off bonds over 20 years for road repairs that only last about seven years. 

But Office of Management and Budget director Micah Vincent says the bonds wouldn’t be used for short-term fixes.

“Major build rebuilds, going down to the gravel for pavement," Vincent said. "And those projects have a useful life that is 20 to 25 years or longer."

But Dennis Faulkenberg, who represents road construction companies, says his concern isn’t what projects bonds will be used for.  He says the Pence plan doesn’t identify a specific funding source to repay the bonds.

“Never in Indiana have we had a bonding program for highways that there wasn’t a new revenue source enacted and dedicated to that bond repayment,” Faulkenberg said.

A Senate committee unanimously advanced Pence’s proposal. Another Senate committee unanimously approved a bill, supported by Pence, that would immediately provide more than $400 million to local communities for road projects.