Gov. Mike Pence has launched the 21st Century Crossroads road funding proposal he claims would open up $1 billion over four years without raising taxes.
The funds would come from a combination of five sources: reserves, budget appropriations, “next generation” trust fund, new bond financing and existing bond refinancing.
“These additional funds will help (the Indiana Department of Transportation) make future maintenance and repairs as the interstate system comes of age, and will help ensure that our roads can support the economic and employment growth our state has seen over the last few years,” Pence said.
Funding source breakdown:
- Reserves: $241 million beginning fiscal year 2017 pulled from an estimated $2 billion in reserves.
- Budget appropriations: $450 million, requested over three fiscal years (2018-2020) at $150 million per year.
- “Next Generation” trust fund: $50 million in fiscal year 2019 gathered as accelerated distribution of interest from the $500 million invested in a trust fund as part of the 2006 Major Moves program.
- Bond financing: $240 million in fiscal year 2017
- Existing bond refinancing: $26 million over four years (fiscal years 2017-2020)
This equates to $487.5 million in fiscal year 2017, $156.5 million in 2018, $206.5 million in 2019 and $156.5 million in 2020.