INDIANAPOLIS | Republicans and Democrats in the Indiana House collaborated Thursday on a "Kumbaya moment" that could send local governments $1 billion to address their road and bridge construction needs.
The House voted 100-0 to adopt a Republican amendment that would split $250 million in state highway funds and another $250 million in anticipated federal stimulus dollars between cities and counties.
But the detente dissolved minutes later when Democrats, by a voice vote, tacked on their plan to cash out a $500 million trust fund created via the $3.8 billion Indiana Toll Road lease and add the money to the local roads bonanza.
"I think we need to get dollars in the hands of the locals. There's no question we need to do that," said Rep. Ed Soliday, R-Valparaiso. "I wasn't happy about the (Democratic) amendment because I think you need to preserve something for the future. I hate to steal the nest egg until the wolf is really at the door."
Republicans created the so-called "next generation" trust fund in 2006 with the intent of never tapping the $500 million in principal.
But Rep. Terri Austin, D-Anderson, countered that "sometimes sacred cows make the best hamburger." She noted that the account is earning a paltry 2.3 percent investment return and said a total of $1 billion in road construction would create an estimated 50,000 jobs.
State unemployment is at 8.2 percent, Indiana's highest jobless rate since February 1985.
"We're trying to help our state obtain jobs, and I'm glad the Republicans joined us today," said House Speaker Pat Bauer, D-South Bend.
The road funding legislation, House Bill 1656, actually contains a drafting error that would have it steer a total of $1.5 billion -- instead of $1 billion -- to cities and counties over the next two years. Republicans plan to offer an amendment as soon as Monday clarifying that their half of the plan is intended to send local government $500 million total, not that much each year.
An earlier $800 million version of the legislation promised $19.2 million for Porter County and $81.8 million for Lake County. Local estimates were not available Thursday for the new $1 billion proposal.
