Tens of millions of dollars for projects around Bloomington could be withheld by the state highway agency as it pushes for local officials to adopt plans for the Interstate 69 extension through southwestern Indiana.
Bloomington and Monroe County officials have declined to include aspects of the I-69 project in their local transportation improvement plan.
Samuel Sarvis, the Indiana Department of Transportation's deputy commissioner for major program management, said the state and local plans must match for federal money to be spent in an area.
"Those two programs are not in line, and as long as they're not in line, I don't believe the state will be spending any capital transportation dollars in the MPO area," Sarvis told The Herald-Times.
Among planned projects that could lose funding are the widening of the Indiana 45-46 bypass around Indiana University's campus, future phases a recreational trail and construction of a downtown bus station.
Work began last year on a short segment at the southern end of the I-69 extension linking Indianapolis and Evansville.
Opposition to the project has been strong in the Bloomington area, with foes saying it would cause too much environmental damage and cost too much for only a slightly faster drive between the cities.
The Bloomington City Council opposed selection of the extension route, which takes the Indiana 37 corridor from Indianapolis south past Bloomington.
Monroe County Commissioner Mark Stoops said the state highway department was trying to force local officials into backing the I-69 project.
"I think we ought to sue them," Stoops said. "I think if INDOT wants to play hardball, then we should play hardball."
Bloomington Mayor Mark Kruzan said he had not heard anything from the highway agency about any funding freeze.
"I don't know in what way the two plans are out of sync, but we'll certainly go over each and go over them word for word and see if there is any difference," Kruzan said.
Indiana agency, Bloomington squaring off over I-69
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