House Dems Call For $2B in Infrastructure Spending

Pelath says it's time to plan for the "demise of ISTEP."

Indiana House Democrats have announced a plan that calls for double the spending laid out in a recent statewide infrastructure proposal from Governor Mike Pence. Minority Leader Scott Pelath (D-6) says he will push for legislation to reallocate proceeds from the state’s gasoline sales tax and special fuels sales tax for state and local road improvements. House Roads and Transportation Committee Chairman Ed Soliday (R-4) calls the plan "shortsighted," saying it would deplete state reserves and leave "a corresponding hole in our already balanced budget."

Pelath said the Crossroads Tomorrow plan won’t deplete reserves, but just change "where our priorities are." A major focus of the Democrats’ plan is local roads. Pelath says "we need our cities to be economic engines as well and it’s harder and harder for them to get the basics done."

Soliday says "as we move forward on this complex issue, our goal is to address Indiana’s immediate needs while developing a comprehensive, data-driven plan that will maintain our state and local infrastructure for years to come."

Pence’s plan called for $1 billion in additional funding over four years. The funding would come from sources including existing sales tax, bond refinancing and tapping into more than $240 million from the state’s reserves. The state says it closed Fiscal Year 2015 with a structural surplus of $210 million and total reserves of more than $2.1 billion. Pence Administration Spokesman Matt Lloyd said "sadly, the plan presented today by House Democrats forces Hoosiers to choose between cutting $500 million from the general fund for vital services like K-12 tuition support, teacher pensions, Medicaid and state hospitals or going broke in four years. That is irresponsible and not serious."

During a news conference Monday in Indianapolis, Pelath said the "aggressive" plan by Democrats will also include provisions "to ensure Hoosiers do the work."

The 2016 legislative session begins November 17. You can view an infographic on the Crossroads Tomorrow plan by clicking here.