STATEHOUSE (April 27, 2017) – Gov. Eric Holcomb today signed State Rep. Ed Soliday’s (R-Valparaiso) bill into law providing the largest investment in state and local infrastructure in Indiana’s history.
Soliday said House Enrolled Act 1002 will provide immediate and substantial funding increases for state and local roads and bridges. Beginning in July of this year, the legislation will provide an additional $357 million in state and $260 million in local road funding. These additional investments will continue to increase year-over-year, reaching $1.2 billion in 2024, with nearly $900 million expected in new state funding and an additional $340 million in new local road funding.
“This is a historic day and a big win for locals with an unprecedented amount of money going directly to maintaining and improving infrastructure,” Soliday said. “This plan ensures every cent paid at the pump will go to state and local roads and bridges. We have worked together as a team to create a data-driven measure that takes care of what we have and builds for the future without leaving debt for our children and grandchildren.”
The plan increases user fees by 10 cents per gallon on gasoline, special fuel and motor carrier surcharge taxes to restore buying power lost to inflation. These user fees would be indexed annually for the next seven years but wouldn’t increase more than 1 cent per year. The gasoline tax has not been increased since 2003, and the other user fees haven’t been increased since 1988. Soliday said this ensures that those who use and benefit from the roads help pay for them.
The remaining 4.5 cents of the sales tax on gasoline would be shifted over five years starting in 2020 from the state’s general fund to the State Highway Fund, which is dedicated exclusively to roads and bridges. By 2024, every cent in state tax paid at the gas pump will be dedicated solely toward road and bridge funding.
The measure calls for a new, $15 annual fee on all vehicles, a $50 annual fee for hybrids and $150 annual fee on electric vehicles registered in Indiana. The money would provide a sustainable source of funding for Indiana’s Community Crossings Matching Grant Fund, which provides road funding to local governments. Soliday said important changes were also made to expand grant eligibility to help smaller cities, towns and counties fund local infrastructure.
Under the proposal, the Indiana Department of Transportation would study tolling and submit a waiver to the federal government that would allow Indiana’s executive branch and the State Budget Committee to approve potential tolling projects.
Visit iga.in.gov to learn more about HEA 1002.
HISTORIC TRANSPORTATION FUNDING: State Rep. Ed Soliday joins (seated, from left to right) State Sen. Michael Crider (R-Greenfield), Senate Pro Tem David Long (R-Fort Wayne), Gov. Eric Holcomb and House Speaker Brian C. Bosma (R-Indianapolis) today at the Statehouse as his bill providing infrastructure funding is signed into law. Soliday’s (R-Valparaiso) measure provides responsible, sustainable and comprehensive funding for Indiana’s roads for the next 20 years.
State Rep. Ed Soliday (R-Valparaiso) represents House District 4,
which includes portions of Porter County.
A high-resolution photo of Soliday can be downloaded by clicking here.