The upcoming legislative session promises to be one of the most consequential in recent memory. As January approaches, it is increasingly clear the fiscal operations of city and town governments will be significantly influenced by the bills introduced. While much attention is focused on potential property tax reforms, there is another important issue that deserves attention: the FIRSST Task Force’s recommendations for funding Indiana’s infrastructure in the next biennium.
Preparing for the infrastructure challenge
In the coming weeks, we hope to see the study committee release recommendations for:
- Preserving or growing the highly effective Community Crossings Matching Grant program, which has been instrumental in local infrastructure projects, and making only strategic adjustments to the program such as allowing a higher ceiling for larger communities and reducing the match requirement for small communities.
- Strategies for addressing declining gas tax revenues that help fund local roads and streets as electric vehicle usage and fuel efficiency rises.
- Plans to fund the expansion and maintenance of Indiana’s interstate transportation system.
By prioritizing transportation infrastructure, Indiana can bolster economic growth, improve connectivity, and enhance quality of life for residents.
The economic benefits
Investing in roads and bridges is more than a civic necessity; it is a catalyst for economic growth. According to several national studies by entities such as Business Roundtable and Brookings, every dollar spent on public infrastructure generates approximately $3 in economic benefits. At a minimum this translates to increased business activity and more employment or wage increases. A deeper dive tells us that maintaining our roads and bridges results in higher workforce productivity, particularly when you consider that nearly 80% of Americans commute to work via automobile.
Community Crossings has already delivered on its transformational promise. Since its inception, the state has awarded $1.8 billion in matching funds to locals for road and bridge projects, improving connectivity and creating jobs. These investments boost local economies in the short term, pave the way for long-term viability, and become a catalyst for additional investment.
Adapting to a changing transportation landscape
The costs associated with infrastructure management are staggeringly high and have not been immune to the inflationary pressures elsewhere in the economy. And with the ongoing rise in electric vehicle usage and increased fuel efficiency standards, our state’s reliance on the gas tax is problematic. Municipalities must commit to using all available tools for raising road funding revenues locally to ensure all resources are brought to bear. This will help, but when looking at the overall need, there is still a need to explore new, alternative funding mechanisms and technologies that focus more on the users of our state transportation network. During what we expect will be a tight state budget, seeking new options as opposed to reallocating existing revenues will prevent rapid decline of our roads, defeating eight years of hard work spurred by the passage of the 2017 road funding package.
Proactively addressing these challenges will enable Indiana to maintain its infrastructure and remain competitive in a rapidly changing transportation landscape.
Building places where people want to live
In addition to the purely economic benefits, well-maintained roads, vibrant public spaces, and accessible transportation options foster local pride and greater community engagement.
Research from the Knight Foundation shows that transportation infrastructure ranks high among factors influencing people’s attachment to their communities. As Indiana competes with other states for new talent and long-term residents, quality, safe infrastructure can differentiate us from our competition.
A pivotal moment
Indiana stands at a literal and figurative crossroads. The upcoming legislative session will shape the future of our communities. Lawmakers must prioritize making
It’s critical that when May comes around, we have adequate funding for road and street infrastructure to keep up with maintenance and enhancements at both the state and local level.
The road ahead will not be easy, but Indiana has come too far to lose momentum. By shoring up investment in our critical pathways, our state and the municipal hubs of Indiana’s economy will thrive for decades to come.
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