Stay Informed

With newly elected leadership now in place at the Indiana Statehouse, the stage is set for the first round of budget conversations under the administration of Gov. Mike Braun. While Indiana Farm Bureau will be advocating fiercely to reduce property taxes and improve access to water, the organization is also interested in the conversations regarding road funding.

The viability of rural Indiana is one of INFB’s priorities, and a big part of rural viability is maintaining the infrastructure necessary to support heavy farm equipment, grain trucks and general traffic on the state’s rural roads and bridges.

“The investment in our rural infrastructure is not keeping pace with inflation, and our rural communities are suffering because of it,” said INFB President Randy Kron. “The last big round of transportation funding the state received in 2017 did improve roads overall, but without continued maintenance, they will slip back into disrepair very quickly.”

While many Hoosiers agree that the state’s roads and bridges need improvements, there are differing opinions on where that money should come from.

The gas tax seemed like an obvious place to look in 2017, but that increase hasn’t bridged the gap over the past few years, and there is little appetite for a further tax increase in 2025. Additionally, with increases in fuel-efficient and electric vehicles, the state is not collecting nearly the revenue needed from gas alone to support infrastructure costs.

Other options include big projects like interstate tolling and expanding major roadways, but those types of projects do not focus on maintaining local roads.

One program that has seen success on the local level is the Community Crossings Grant Program, and bolstering this initiative could prove to be a worthwhile venture. Through Community Crossings, the state provides matching funds to cities, towns and counties across Indiana to make improvements to local roads and bridges.

Since its inception in 2016, localities have received more than $1.8 billion for infrastructure projects. Modifying the program to award more money per cycle or reducing the amount smaller communities pay into the program could be possible avenues toward improving rural infrastructure.

“Instead of implementing more taxes on Hoosier motorists, this grant program gives local elected officials the ability to target specific projects in their communities,” said Andy Tauer, INFB executive director of public policy. “Expanding access to the program should definitely be looked at as an option this legislative session.”

There is a clear need for new and innovative sources of funding, and finding a sustainable solution should be at the forefront of budget discussions this year. INFB will be working closely with the General Assembly to ensure that rural communities don’t fall by the wayside in that process.