The 2016 legislative session wrapped up Thursday, and significant progress was made on issues facing Indiana, including work to address state and local road funding needs.
House Enrolled Act 1001 directs $186 million upfront to a local road and bridge matching grant account. The bill also redirects 1.5 cents of the 7 cents of sales tax on gasoline to the matching account as a source of ongoing funding and codifies the current equivalent of one cent already being dedicated to road funding. About $328 million would go toward state road and bridge preservation and maintenance over the next two years. In addition, about $505 million in local option income tax reserves currently held by the state will be returned to local units with $330 million dedicated to roads.
The bill also creates a task force, which will conduct a deep-dive study this summer into state and local road funding needs and options. The bill now moves to the governor’s desk where he is expected to sign it into law.