Tag Archives: transportation

Donnelly Talks Policy to Chamber Group

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Indiana Sen. Joe Donnelly discussed a wide variety of issues with members of the Indiana Chamber’s Executive Committee during an hour-long visit last week. Among his comments on the issues before Congress:

  • Opioid crisis: Senators are working on a federal law that would limit painkiller prescriptions to one week (hopefully reducing addictive outcomes)
  • Transportation infrastructure: There will be a big bill and he believes it will pass as long as it gets paid for
  • Tax reform: Stuck for now because money to pay for it was going to come from the failed health care overhaul
  • Health care bill: Legislation can’t be passed that would result in fewer people having insurance coverage. Democrats, Donnelly noted, have ideas that should be considered

Other topics of conversion: immigration, trade agreements and global threats (Donnelly is a member of the Senate Armed Services Committee).

Indiana Chamber Applauds Final General Assembly Road Funding Plan

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Indiana Chamber of Commerce President and CEO Kevin Brinegar comments on the long-term road funding agreement, which was unveiled late this afternoon by Speaker Brian Bosma and Senate President Pro Tem David Long:

“We laud the compromise reached by House and Senate fiscal leaders that will fund Indiana’s infrastructure needs for the foreseeable future. We are very pleased to see such a substantial long-term funding plan to address the many maintenance and new construction needs that exist throughout our state. This legislation was the Indiana Chamber’s top priority for this session.

“This thoughtful approach also makes sure to fund both state and local road projects – which we know is very important for Hoosier companies – and that everyone pays their fair share through a user-fee based model.

“This agreement has been the product of several years of research and discussion and we congratulate everyone involved. We strongly encourage the members of the General Assembly to support this legislation with their vote Friday.”

Road Plan Under Construction as Senate Takes Its Turn

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The Indiana Chamber was pleased overall to see the Senate response to the House road funding bill. Several aspects of the plan will be determined as this bill goes forward – including how it interfaces with the budget bill’s (HB 1001) evolution.

Some key Senate changes from the House road funding plan are:

  • removal of the sales tax revenue collected on fuel sales that would directly go to roads
  • a Chamber-supported $75 annual registration fee for hybrid vehicle
  • modified distribution of the state/local road funds
  • requirement change from “may” to “shall” for INDOT to seek a waiver to toll interstate highways
  • addition of a $100 annual transportation infrastructure improvement fee that applies to commercial
  • vehicles greater than 26,000 lbs.
  • addition of a $5 fee per new tire sale (currently 25 cents per tire)
  • addition of a 10-cents per gallon aviation fuel excise tax with revenue going to the airport development grant fund

This version of the bill should bring in about $672 million per year. Tolling has the potential of bringing in up to $400 million per year, when implemented. Removing the House proposed sales tax revenue collected on fuel sales that were earmarked for the highway fund reduces the total by over $300 million. As the bill moves forward, the Senate may have other cashflows in mind that can be repurposed to replace that revenue stream. Doing so will help get the road funding bill close to the $1.2 billion a year the extensive Funding Indiana’s Roads for a Stronger, Safer Tomorrow taskforce recommended last year.

The Chamber testified in support of this version of the bill. It keeps the discussion going and presents other ideas and options to be considered for the final version of the bill, which we will work to bring to a good landing at the end of session.

The Chamber will continue to advocate for a strong, user-fee based model to address Indiana’s $1.2 billion per year road funding gap. We encourage members of the business community to contact your state senator to let them know they need to support HB 1002 to address the huge $1.2 million gap in Indiana’s road funding.

Call to Action: Connect with your state senator via our grassroots page. Let them know today that long-term road funding is important to you and your company!

Bumpy Road for Road Funding in Senate?

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The Chamber recently testified in support of HB 1002, citing the need for long-term, sustainable funding to adequately maintain, finish what we have started to build and build out our priority new road projects. We also noted that we do not see where the state can magically find the funds in the present budget to address the need outside of taxes, plus the additional 10 cents a gallon to ensure our road quality is a wise investment.

There were no amendments offered as of yet but it is safe to say the bill will have several committee amendments to change it.

Additionally, there are several major issues to iron out in this bill. One is whether to dedicate all of the sales taxes collected on fuel sales to road funding or keep most of that revenue flowing into the general fund. Another is what the Senate will do with the $1 a pack cigarette tax increase passed by the House. The cigarette tax increase would have replaced much of the revenue in the general fund if the fuel sales tax would have gone to the road fund. Yet another issue is to toll or not to toll major interstate highways. While that is a pure user fee for roads, there is quite a disagreement about if and where such tolls should be considered.

Another aspect is there are legislators who don’t want to be labelled as “raising taxes” and shy away from the fiscal realities of our very important road infrastructure.

Folks, this is an investment in our future that won’t cost that much individually and has the potential to enhance commerce and Indiana’s “Crossroads of America” location advantage.

The Chamber will continue to advocate for a strong, user-fee based model to address Indiana’s $1.2 billion per year road funding gap.

Call to Action: Connect with your state senator via our grassroots page. Let them know today that long-term funding is important to you and your company!

Local Option Transportation Bill Moves Forward

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SB 128 was amended on the Senate floor last week and passed third reading yesterday. It was previously determined that HB 1141, with similar language, would not move out of committee and efforts would be focused on the Senate legislation.

These were two bills with similar goals – to allow for communities all around Indiana to supplement road funding to enhance the possibility for a priority regional project – and were introduced in their respective legislative bodies. Both bills would apply to all areas of the state and create a mechanism for local communities to create a regional development authority, which can be used to apply for federal grants, create separate funding for a particular road project, give them the authority to issue bonds and have a referendum to raise property taxes to pay for transportation infrastructure.

The authors of both bills are from Jasper, and they see great economic value in connecting their community and surrounding communities with Interstate 69. They want to create options for communities to step up to provide additional local funds to enhance the possibility of getting a road built sooner.

The Chamber supports the effort as it creates a viable local funding option and it doesn’t require INDOT to elevate the priority. However, if the funding is there, it is more likely to happen. The authors and other supporters will continue to work on moving the Senate bill through the process.

Road Funding Bill Now Travels to Senate

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Chamber-supported HB 1002 was amended last week on the House Floor and then passed 61-36 largely along party lines and is now up for consideration by the Senate.

The floor amendment prohibits any new toll road within 75 miles of any other toll road, terminates the gas tax indexing after July 2024 and allows additional time for public comment before a significant road project begins. Earlier, changes were made to the bill to have all sales taxes collected on fuel costs to be designated for roads (currently it’s only a penny of the seven-cent tax) starting in 2018 versus a phase-in of the sales tax to roads over three years through 2021. This creates a potential general fund budget deficit of over $300 million a year that must be addressed, either through budget cuts or other identified revenue sources. Moreover, the Chamber will continue to advocate for a strong, user-fee based model to address Indiana’s $1.2 billion per year road funding gap.

Call to Action: Connect with your state senator via our grassroots page. Let them know today that long-term funding is important to you and your company!

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Get Your Motor Running for Transportation Funding

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The long-awaited road funding bill (HB 1002, authored by Rep. Ed Soliday) arrived during the first week of session. It addresses the structural deficit of $1.2 billion per year for Indiana roads. The bill includes many good things that the Chamber supports; it is user-fee based and data-driven. While the bill will have changes during the next four months, we will work to support its basic concepts. The state’s situation: Over the years, technology (that led to better gas mileage) and inflation have combined to erode Indiana’s road maintenance dollars. Also, the last time the gas tax saw an increase was 2003. There will be a major hearing on this bill by the Roads and Transportation Committee on January 25 and the Chamber will be there to formally advocate its full support.

HB 1002 provides for a one-time fuel tax rate increase of 10 cents per gallon on gasoline  currently $0.18), special fuel tax (currently $0.16) and motor carrier surcharge tax (currently $0.11.) It also does the following:

  • Provides for an annual rate increase in fuel tax rates based on an annual index factor
  • Increases alternative fuel decal fees by 50%
  • Establishes a $15 transportation infrastructure improvement fee that applies to all motor vehicle registrations
  • Requires a person who registers an electric vehicle to pay a supplemental registration fee of $150 with an increase every five years based on an index factor
  • Provides that the gasoline use tax is distributed to highway funds over a phase-in period
  • Repeals restrictions on when a tolling project can be undertaken
  • Requires the Indiana Department of Transportation (INDOT) to seek a Federal Highway Administration waiver to toll interstate highways
  • Permits INDOT to approve certain railroad crossing projects and authorizes the Indiana Finance Authority to finance an approved project subject to a maximum annual debt service limit of $10 million
  • Makes various changes to the transportation funding exchange program between the state and counties and municipalities

Chamber Comments on Recommendations from Transportation Funding Task Force

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Indiana Chamber of Commerce President and CEO Kevin Brinegar comments on the release of recommendations from the FIRSST (Funding Indiana’s Roads for a Stronger Safer Tomorrow) task force:

“The task force has provided additional emphasis on three key priorities: today’s revenue sources are not adequate; long-term funding is required to meet both current maintenance and future new construction needs; and new funding should be based on a user-fee approach.

“We support the work of the task force and are prepared to assist legislators and the Holcomb administration in passing data-driven legislation that will help drive Indiana’s economic future. Reliable transportation infrastructure is critical for companies and the jobs they provide across the state.”

Indiana Chamber Unveils Top Legislative Priorities for 2017

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Senate Democratic Leader Tim Lanane (right) speaks during Monday’s Indiana Chamber Legislative Preview. He was joined during the panel discussion by Senate President Pro Tem David Long, as well as House Speaker Brian Bosma and Minority Leader Scott Pelath. Our VP Caryl Auslander moderated.

Long-term transportation infrastructure funding, expansion of state-funded preschool to children from low-income families and strategies to reduce the state’s smoking rate are among the Indiana Chamber of Commerce’s top priorities for the 2017 session.

These objectives were announced at the organization’s annual legislative preview in Indianapolis today. The event sponsor was Ice Miller LLP.

“Based on studies, reports and simply travelling across the state, it’s pretty apparent that what we desperately need is a long-term, sustainable, transportation infrastructure funding plan,” offers Indiana Chamber President and CEO Kevin Brinegar.

He believes whatever strategies are ultimately settled on to fund the state’s road and bridges, two factors must be taken into consideration.

“We need to completely fund both maintenance needs and important new projects, and ensure that every user pays their fair share.”

Specific funding strategies the Indiana Chamber could support include: indexing the fuel excise taxes/fees to inflation; raising fuel excise taxes/fees; charging fees for alternative-fuel vehicles (which aren’t subject to the regular fuel tax); tolling a major interstate; and dedicating all of the sales taxes on fuel to infrastructure (the current model allots a penny with the other six cents going to the state’s general fund).

Brinegar notes that the Indiana Chamber would support replacing any revenue lost to the general fund with another revenue source so that the general fund is left whole.

Education is also high on the organization’s agenda.

“We are encouraged that virtually everyone involved sees the need to increase state-funded preschool,” Brinegar begins. “The Indiana Chamber will be advocating that disadvantaged youngsters take priority for the state’s limited dollars.

“We want to see legislators focus on fiscal responsibility, ensure preschool programs are of high quality and adopt a mixed delivery model that includes public schools, Head Start programs, licensed family and center-based childcare, as well as community-based organizations. All of those things are vitally important.”

The Indiana Chamber is part of the All IN 4 Pre-K coalition.

Separately, the Indiana Chamber is supporting suitable testing for students and accountability measures for all involved in the education process.

“Clearly there have been issues with ISTEP testing and the communication of result expectations based on the state’s new college and career-ready standards,” Brinegar says. “But the fundamental importance of measuring students, teachers and schools remains. That’s how we can predict student progress, rate teacher effectiveness and compare and contrast school performance relative to state and national peers.”

Indiana ranks 44th in the nation for highest percentage of smokers. Brinegar stresses that the increased health care costs associated with this level of smoking has the attention of employers.

“These workers are less healthy, have higher insurance premiums and miss more days on the job – and some are not able to work at all.”

The Indiana Chamber, a member of the new Alliance for a Healthier Indiana, is backing a comprehensive approach to reducing the state’s smoking rate. The proposal includes: raising the price of cigarettes via a tax increase; funding a more robust smoking cessation program; increasing the smoking age from 18 to 21; and repealing special privileges for smokers (that prohibit employers from asking possible new hires if they smoke).

“Right now, Indiana is spending substantially more on smokers with health issues who are on Medicaid than it is taking in via cigarette tax revenues. For every pack sold and taxed at 99.5 cents, the state spends at least $15.90 in related health care costs,” Brinegar states. “Obviously that’s not a sustainable tradeoff and needs the state’s attention.”

In the summer, the Indiana Chamber more closely aligned with the state’s technology industry, forming the Indiana Technology & Innovation Council to facilitate better communication and coordination among interested parties.

According to Brinegar, a key focus is public policy so technology leaders can present a strong, unified voice at the Statehouse. Out of the gate, the goal is to “make technology innovation an integral part of the state’s identity.”

Brinegar says: “Indiana is already fostering an impressive entrepreneurial spirit and becoming a technology hub in the Midwest. But we need to better support our technology successes and build on them. After all, our technology efforts now provide tremendous support to the agriculture, logistics and manufacturing sectors in the state – three of our main cogs.”

The Technology and Innovation Policy Summit on December 15 will unveil all the council’s legislative goals.

A complete rundown of the Indiana Chamber’s 2017 key legislative initiatives (top priorities and additional areas of focus) is available at www.indianachamber.com/priorities.

Also at the legislative preview event, five state legislators were honored as Indiana Chamber Small Business Champions “for their hard work and dedication to improving Indiana’s small business climate.” This award is based on voting and advocacy during the past legislative session.

The 2016 Small Business Champions are: Sen. Travis Holdman from Markle, District #19; Sen. Tim Lanane from Anderson, District #25; Rep. Matt Lehman from Berne, District #79; Rep. Karlee Macer from Indianapolis, District# 92; and Rep. Ed Soliday from Valparaiso, District #4.

Recap of the Indiana Chamber’s Top 8 legislative priorities:

  • Support establishing a long-term sustainable funding stream for the state’s roads, bridges, etc.
  • Support the expansion of publicly-funded preschool initiatives for children from low income families
  • Support suitable testing for students and accountability for all involved in the education process
  • Support comprehensive approach to decreasing the state’s smoking rate
  • Support a statewide water policy to assure future resources and our economic prosperity
  • Support making technology innovation an integral part of the state’s identity
  • Support maintaining and enhancing our attractive tax climate
  • Support a work share program that will allow employers to maintain a skilled stable workforce during temporary downturns

Go Vote! Then Let’s Move from Politics to Policy

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Indiana Chamber of Commerce President and CEO Kevin Brinegar comments on the election aftermath:

“We probably have just witnessed the most bizarre and bruising election of our lifetimes. It’s critical to move on quickly from any bitterness of the campaigns or results and come together as a state and nation.

“We need lawmakers to concentrate on the business of governing and moving our economies forward. Let’s focus on producing positive outcomes and Indiana continuing to set an example as a state that gets things done.”