The state motto of Indiana is “the Crossroads of America.”
In Indiana today, the road system is currently in a tough position.
Right now, the funding gap stands at $1 billion just to maintain state and local roads, according to the Indiana Association of County Commissioners.
A key detail the fund neglects is the pressing need for improvements on the current road system. That represents a major issue for the Indiana state legislature. What can they do in order to close the gap and ensure the state’s roads are maintained and improved?
Gov. Mike Pence introduced his 21st Century Crossroads proposal Oct. 13, which would produce the $1 billion needed without raising taxes.
The proposal also plans to repair 16,000 miles of state highways and 5,200 bridges over the next 15 years, according to an Indiana Department of Transportation press release. The press release also stated the program would add to the $3.2 billion the Department of Transportation planned to spend over the next 5 years.
Funding for the plan would come from several places. The state budget reserves more than $2 billion, and $241 million of the budget would be drawn from the reserve, according to the press release. Then $450 million would come from state budget appropriations by accumulating $150 million per year from 2018-20.
Indiana’s AAA finance rating will further add approximately $240 million to the mix. The remaining $50 million will come from the 2006 Major Moves program implemented by Mitch Daniels.
In addition, national research shows every dollar used for preventative road maintenance could save $6 to $14 in the future.
I believe this will be great for our state. These repairs are necessary to ensure that our state’s infrastructure will be maintained.
Above all, this proposition would help enhance the Indiana economy. With manufacturing as a key industry in Indiana, construction companies will gain new state contracts, thus requiring them to hire more workers. All of this will occur while Indiana maintains and improves its infrastructure.
To add to these benefits, the plan wouldn’t affect the Indiana budget at all.
The $1 billion needed to maintain the roads would be harvested without destroying the state’s finances.
In terms of business and manufacturing, renovated roads would be great for business. With $221,877,814,000 of manufacturing shipments going through Indiana in 2007, according to the government census, Indiana is a nerve center for commerce and shipping alike.
The proposal would ensure that Indiana and its residents retain jobs and economic importance in the coming years.
Although Gov. Pence has come under fire for the Religious Freedom Restoration Act, this proposition could represent a major success for his administration.
The 21st Century Crossroads proposal has the potential to fix the ailing condition of Indiana’s state and local roads while not driving the state’s budget into the ground.
Road funding has been a headache for the state legislature, but I fully support Pence’s plan of action. I hope the state legislature makes the right decision and supports it, too.
staranyi@indiana.edu
