Indiana Needs New Tax for Transportation Infrastructure, Panel Says

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CHICAGO — Indiana should impose a new tax to raise revenue for transportation infrastructure, a blue ribbon panel has recommended to Gov. Mike Pence.

Among other things, the Blue Ribbon Panel on Transportation Infrastructure told Pence that the state needs to prioritize four major projects, including widening existing interstates, a new Ohio River bridge, and a bypass around Indianapolis. The four projects together would cost around $5 billion but could cost up to $10 billion. The panel also included a longer list of important projects.

Pence praised the panel's report and said he plans to use the panel's report to help craft a 10-year transportation plan. "If you're going to welcome people to Indiana with signs that say we're the Crossroads of America, you better have the roads to back it up," Pence said.

The panel did not offer specific revenue-raising ideas but did propose the state should have a user-fee system linked to license plates that could raise new money. It also recommended that state lawmakers stop diverting gas tax revenues into the general fund.

The bulk of the $1 billion state highway budget is currently spent on maintenance, the report said.

"Taking care of what we have is becoming increasingly difficult due to declining revenues," the report said. "Long-term revenue forecasts for the state highway fund indicate that the revenue is not sustainable."

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