Even if eligible municipalities and counties maxed out local tools like the wheel tax and excise surtax, there’s still an annual $650 million deficit simply to maintain current road and bridge conditions. (Getty Images)
While education dominates half of Indiana’s budget and Medicaid costs worry lawmakers, a projected transportation infrastructure funding shortfall creeps closer.
Motor fuel taxation yields eight of every 10 state dollars that fund roads and bridges for both the Indiana Department of Transportation (INDOT) and local governments. But as Hoosiers upgrade to more fuel-efficient vehicles — or try electric and hybrid options — there’ll be less money to work with.
And inflation means those dollars aren’t stretching as far.
“I believe we are about to hit a cliff, and it’s going to be in 2030,” said Rep. Jim Pressel, R-Rolling Prairie. He chairs the House’s transportation-focused committee.
He and other key lawmakers spent almost two years studying up on revenue-raising possibilities at the state and local level. They haven’t yet coalesced around any single fix.