LAWRENCE COUNTY — Drawing from data compiled by the Indiana Local Technical Assistance Program (LTAP) at Purdue University, Lawrence County Highway Department Superintendent Brian Sowder has shared details from a newly released state technical report outlining the critical funding mechanisms and stark financial gaps facing local county infrastructure.
The report, titled the Indiana Local Road and Bridge Report, underscores a massive statewide challenge: local agencies maintain 89% of all centerline miles in Indiana and roughly 70% of all bridges, yet they face a projected multi-billion-dollar funding deficit over the next decade to keep infrastructure functional.
“Maintaining rural roadways and aging bridge networks is an ongoing battle against escalating construction costs,” said Sowder. “Understanding the precise breakdown of where state fuel taxes go and where our local shortfalls lie is crucial as we plan our paving and repair schedules.”
Breaking Down ‘Road Funding 101’
According to the state data, Indiana’s local infrastructure relies on a highly structured baseline of state-dedicated, locally generated, and supplemental funds. At the foundational level, the state generates approximately $1.6 billion for infrastructure via dedicated state highway funds, supplemented by $949 million in local dedicated funds and $190 million in other localized pools.
For county highway departments, the major operational “buckets” include:
- Motor Vehicle Highway Account (MVH): Heavily restricted funds generated primarily by state fuel taxes. PDF
- Local Road and Street Account (LRS): Distributed strictly based on localized vehicle registrations and county population-to-mileage ratios. PDF
- Community Crossings Matching Grants (CCMG): A highly competitive state-matching program managed by INDOT. PDF
- Local Option Highway User Tax (LOHUT): Composed of local wheel taxes and vehicle excise surtaxes. PDF
Approximately 80% of the foundational MVH account is derived purely from fuel taxes. As of 2024, the state gasoline tax stands at $0.35 per gallon, alongside a $0.166 gasoline use tax and a $0.184 federal tax. Special diesel fuel is taxed at an even higher rate of $0.59 per gallon by the state…