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New Report Details Indiana's Transportation Funding Dilemma

INDIANAPOLIS--March 23, 2005--A new report by a Minnesota-based organization continues to document an issue that concerns all of Indiana: growing shortfalls on the state highway system, and the recommended highway funding mechanisms that might handle these increasing demands.

The report, entitled "The Indiana Road and Bridge Transportation Funding Primer and Investment Needs Analysis," provides a better understanding of infrastructure investment in the state, and also addresses some of the challenges with regards to future transportation funding.

"This document compiles into one place much of the 'need to know' information with regards to highway and bridge funding in Indiana," said Matt Shands, Director of the Transportation Policy Institute of St. Paul, Minn., which prepared the report. "It gives a clear picture of the precarious situation Indiana finds itself with regard to adequate transportation funding."

The 41-page report examines several aspects of Indiana's transportation funding scenario, including the current conditions of highways and bridges, how these systems are funded, and why the current income sources are insufficient for the state's needs.

In particular, the report notes that state funding is inadequate because:

-- Inflation has essentially cancelled out the entire 2003 3-cent gasoline tax increase.

-- Indiana's gas tax rate is below the national average and below the rates of most neighboring states.

-- Future economic growth will continue to place higher demands on transportation infrastructure.

The report also suggests possible funding alternatives including increasing and/or indexing the state's gas tax, dedicating the state sales tax on motor fuels to roads, and raising motor vehicle fees.

"There is little question Indiana's transportation network is facing some serious challenges, both from an operating standpoint as well as a funding one," said Shands. "This report simply presents the facts of the matter, as well as possible remedies for everyone to examine and hopefully make well-informed decisions when it comes to the future of Indiana's infrastructure."

The TPI is a not-for-profit research and educational organization. TPI's mission is to support development of a safe, efficient and effective multi-modal transportation infrastructure by providing timely and reliable information on transportation policy issues of interest to the public, local communities, businesses, transportation policy professionals, and local, state and federal officials.

The report was prepared for Build Indiana Council, a group of seven associations representing over 500 companies statewide. With activities ranging from reports, editorials and plain old grassroots action, BIC's objective is adequate funding for the state's roads, highways and bridges.

Copies of the report can be obtained by contacting BIC at 317.634.4774 or online at www.buildindianacouncil.org. For a direct interview with Matt Shands, please contact TRIAD, Inc. at 800.288.7423.