State Rep. Ed Soliday made a local push Friday for his proposed transportation bill and received support from local officials.
Soliday, a Valparaiso Republican, spoke at the Lake County Advancement Committee’s monthly luncheon in Schererville, describing how his bill would seek new ways to pay for road repair throughout the state, including by moving the sales tax generated from gasoline to roads instead of the General Fund, a study to look at turning Interstates 65 and 70 into toll roads, allowing municipalities to raise their own taxes and increasing the cigarette tax.
“Two things I know: Roads and bridges cost money, and the day you finish them, they start falling apart,” he said.
Soliday referred to a study finished last year that showed Indiana’s roads in the bottom third of the nation and the fact that the state doesn’t generate as much money from the gasoline tax anymore because of better fuel efficiency in vehicles and people driving less. That number is expected to drop even more in the next decade as car manufacturers have to make cars that average 55 miles per gallon.
“It is dropping rapidly,” Soliday said.
The study estimated the state would need about $300 million a year just to maintain roads.
Soliday acknowledged that turning I-65 and I-70 into toll roads would not be popular but pointed to the estimate that they would likely raise $365 million a year, enough to repave both of them throughout the state.
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He also stressed that his bill only calls for a study of the issue and argued that the toll would ensure drivers from outside the state pay for using the roads.
The bill also provides two possibilities for municipal governments to raise taxes for roads as well, one that would allow any government to apply for matching funding from the state as long as they have an asset management plan in place and another that would allow municipalities with more than 20,000 residents – such as Hammond, Gary, Portage and Valparaiso – to raise their wheel tax.
That proposal would work well for Cedar Lake, Town Councilman Robert Carnahan said. The town needs $1 million to help finish the $4.5 million road project in some subdivisions, money that could come from the state match.
“We’ve got to do something with roads,” he said, noting that he often hears complaints about potholes.
Schererville Town Councilman Tom Schmitt said he would be interested to see if Soliday’s bill can get enough support to pass the Indiana General Assembly, but added that the town could use the help.
“Any help that we can get on the local budget is always appreciated,” he said.
Ty Warner, executive director for the Northwestern Indiana Regional Planning Commission, said he’s hearing excitement about transportation funding from other officials in the area.
“I think there’s going to be a lot of support from this region,” he said, although he didn’t know if there was enough support for it in the rest of the state to pass.
The General Assembly is considering two other similar bills, one from the State Senate and one from Gov. Mike Pence.
“The senate bill… is smoke and mirrors,” Soliday said, adding that Pence’s bill would only bring in money in years the state had a surplus.
Soliday argued that those bills provide only short-term financial help, whereas his bill, supported by House Speaker Brian Bosma, would help to provide funding for the long haul.
Warner said long-term funding is key, noting that the federal government is facing the same problem as Indiana in declining revenue from gasoline sales. The federal government passed a bill to provide money for roads for five years. Warner argues more is needed for the future.
“We need a long-term solution to this problem,” Warner said.
Soliday said he’s been pleased with the support his bill has received, including the Indiana Chamber of Commerce and a state trucking association.
“These numbers are real, and sooner or later we have to give in to that,” he said.