INDIANAPOLIS, Ind. — Indiana lawmakers are looking at a list of options to fund a long-term infrastructure improvement program. “We don’t have enough revenue to even sustain our maintenance program,” said State Sen. Luke Kenley, the Senate’s chief budget writer. Last year, the Noblesville Republican opposed a similar tax increase, and now he says lawmakers need to “face up to the fact” that more money is needed.
Hoosiers could be asked to pay more for cigarettes, gasoline or vehicle registrations. The funding shortfall creates an awkward position for the 12 lawmakers who signed the Grover Norquist pledge to never increase taxes.
The state currently has about $2 billion in a rainy day fund that expected to grow 2 percent over the next two years. That interest will bring in $1 billion in new money. During 2016, the state collected about $300 million less than budgeted.
A report from 2015 shows Indiana needs to double spending on infrastructure. Lawmakers estimate at least $1 billion per year will be needed moving forward.
Governor-elect Eric Holcomb supports increased funding for roads, but it’s not clear if he believes a tax increase is the way to fund it. Some lawmakers express concern that infrastructure spending plan could jeopardize a state funded Pre-K program for disadvantaged students.
