The House toll road bill was heard in a Senate committee this week, but as amendments will be considered it seems toll roads will remain in the bill as it advances.
House Bill 1461, authored by state Rep. Jim Pressel, R-Rolling Prairie, would allow the state to charge tolls on all Indiana interstate highways, including Interstate 80/94 and Interstate 65.
Specifically, the bill would allow the Indiana Department of Transportation to submit a request to the Federal Highway Administration for a waiver to toll lanes on interstate highways. If the waiver is granted, the legislature would not have to enact a statute for the Indiana finance authority to take action on tolling.
“Some have said this is a tolling bill. This is not a tolling bill. The governor has the authority to do tolling today on his own,” Pressel said. “This just gives him more flexibility to do what we need to do going into the future.”
Pressel testified before the Senate Homeland Security and Transportation Committee Tuesday that the state has seen a decrease in road funding dollars, which come from the gas tax, BMV registration and excise tax, as cars become more fuel efficient and people purchase less gas.
“When your road funding revenue is based on gallons sold … we are having the conversation: How do we fund roads into the future? Should it come out of the general fund? I don’t believe that to be true. I think we should have user fees. You pay for what you use,” Pressel said.
By 2030, the state will have to fund $1.2 billion and local governments will have to fund between $900 million to $2.5 billion in road projects because of inflation costs and the reduction in drivers purchasing gas, Pressel said.
Along with tollways, House Bill 1461 allows for wheel tax, addresses bridge construction funding, allows excess distributions from the state’s Community Crossings matching grant program to be distributed to all communities based on lane miles instead of road miles, along with other elements.
“We need to have some very serious conversations about how do we raise that revenue into the future,” Pressel said. “We want to get more road dollars out to locals to be able to help them with those infrastructure projects because we do have an aging infrastructure.”
Sen. Gary Byrne, R-Byrneville, said if the tolling were to go into effect, he’d like to see the legislature lower the gas tax.
“There has to be something reduced if we go down this road,” Byrne said.
Pressel said he agreed, but that action would have to be planned out on a timeline based on the approval of the waiver.
Senator Blake Doriot, R-Goshen, said the legislature has to “seriously look at tolling” because a lot of trucks travel down Indiana’s highways and the majority of the drivers don’t stop in Indiana.
“We are fooling ourselves. If we don’t move tolling along, we’re going to have an interstate problem that’s going to be unbelievable,” Doriot said.
After discussion, 20 people testified on the bill, the majority expressing support for finding ways to fund road projects but acknowledging the bill could use amendments.
INDOT Legislative Director Aaron Wainscott said the organization supports House Bill 1461 and is working with legislators on amendments to the bill.
It will become “increasingly difficult” to fund road projects “with the current fueling consumption funding method” when combined with inflation, Wainscott said. Currently, about 82% of state funding that INDOT receives is tied to fuel consumption, he said, while fuel-efficient cars and inflation combined have cost INDOT $1 billion in lost purchasing power.
“INDOT continues to see erosion of transportation funds due to increased fuel efficiency … leading to reduced revenue from motor fuel taxation,” Wainscott said. “INDOT appreciates the multiple methods included in House Bill 1461 to increase road funding to locals and the state.”
Jenna Bentley, vice president of government affairs for the Indy Chamber, said the organization supports House Bill 1461 because it will increase economic development throughout the state. The chamber “strongly supports” tolling highways, she said.
“In a transportation system largely funded by user-pay models, it’s critical that out-of-state commuters pay their fair share, and tolling is one mechanism to capture that revenue,” Bentley said.
Ryan Hoff, the director of government affairs for the Association of Indiana Counties, said the organization views House Bill 1461 as “a mixed bag.” About two-thirds of Indiana’s counties have adopted a wheel tax and found that “it’s extremely unpopular” with residents, Hoff said, but the expansion to the Community Crossings grant could be helpful.
The Senate Homeland Security and Transportation Committee will further discuss the bill, with amendments, March 25.
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