Association of Indiana Counties Community Forum Indiana Road and Highway Funding

1. Association of Indiana Counties Community Forum Indiana Road and Highway Funding Neal Carboneau Research Manager Indiana Local Technical Assistance Program

2. National Network of Centers • One in every state and Puerto Rico • Regional Centers Serving Tribal Governments • Indiana’s LTAP • Affiliated with Purdue University • Located in West Lafayette

3. The LTAP Centers enable Counties, Cities and Towns to improve their transportation network by providing • Training Programs • Informational Clearinghouse • New and existing technology updates • Personalized technical assistance • Newsletters, directories and publications

4. Indiana Road and Highway Funding The Main Source of Revenue for the Local Roads and Highways Other Sources of Revenue How Is It Distributed Why are distributions noticeably less this year What else can be done

5. Indiana Road and Highway Funding • The Motor Vehicle Highway Account or MVH account was established by Indiana Code IC 8-14-1 • Gasoline Tax IC6-6-1.1 • 1923 .02 cent per gallon • 1947 .04 cent per gallon • 1957 .06 cent per gallon • 1969 .08 cent per gallon • 1980 Average Price Times 8% (max rate 12 cents per gallon) • 1981 Average Price Times 8% (max rate 14 cents per gallon) • 1982 Average Price Times 10% for the first dollar per gallon and 8% for everything over the first dollar = $.0111 per gallon (max rate 14 cents per gallon) • 1985 .14 cents per gallon • 1988 .15 cents per gallon • 2003 .18 cents per gallon (one cent dedicated to bonding and one cent dedicated to the State and one cent dedicated to local units.

6. Indiana Road and Highway Funding The Main Source of Revenue for the Local Roads and Highways Other Sources of Revenue How Is It Distributed Why are distributions noticeably less this year What else can be done

7. Indiana Road and Highway Funding • Motor Vehicle Highway Account Revenues (MVHA) • (a few of the other revenue sources) • Motor Fuel Tax (Gasoline) • Special Fuel Tax (Diesel) • Motor Carrier Fees and Taxes • BMV (Bureau of Motor Vehicles) Fees • Court Costs and Fees • Other Misc Fees and Receipts • Federal Traffic Safety • State Police

8. Indiana Road and Highway Funding The Main Source of Revenue for the Local Roads and Highways Other Sources of Revenue How Is It Distributed Why are distributions noticeably less this year What else can be done

9. Indiana Road and Highway Funding Motor Vehicle Highway Account Distributions (a few areas of distribution) State Police BMV (Bureau of Motor Vehicles) DOR (Department of Revenue) Motor Fuel Tax Division Traffic Safety Programs Highway Safety Plan State Trauma Registry Audit Expense

10. Indiana Road and Highway Funding • Motor Vehicle Highway Account Distribution • INDOT Share • County Share • City / Town Share • Highway Road and Street Fund (LRS) • State Highway Construction and Reconstruction Fund – SHCRF - INDOT

11. Indiana Road and Highway Funding The Main Source of Revenue for the Local Roads and Highways Other Sources of Revenue How Is It Distributed Why are distributions noticeably less this year What else can be done

12. Factors Effecting Current Funding? Motor fuel tax (Gasoline) and special fuel tax ( Diesel) make up 71.9 % of the revenue into the MVHA Gasoline $0.18 per gallon Special fuel $0.16 per gallon As per gallon prices increase fuel sales decrease Fewer gallons pumped equals less revenue for roads and highways

15. Price per Gallon Gallons Pumped (Indiana) Highway revenue from gas tax CPI (cost of goods and services)

16. Price per Gallon Gallons Pumped (Indiana) Highway revenue from gas tax CPI (cost of goods and services)

17. Percent Change Municipal Cost Index 2000 – 2009 (http://americancityandcounty.com/mciarchive/#Archive)

18. Factors Effecting Current Funding? • Assumptions • Petroleum products • Would be the primary fuel source • Would be economical to produce • Gallons of fuel pumped is relative to miles driven • Vehicle’s miles per gallon would stay consistent • Highway revenues • Will increase with the increase in the driving population. • Will adjust with the cost of goods and services.

19. Indiana Road and Highway Funding The Main Source of Revenue for the Local Roads and Highways Other Sources of Revenue How Is It Distributed Why are distributions noticeably less this year What else can be done

20. Wheel Tax (LOHUT) • Local option highway user tax (LOHUT) • Surtax < 11,000 lbs GVW • Wheel Tax > 11,000 lbs GVW • Only local optional tax specifically for road funding • Passed Indiana legislature in 1980

21. Wheel Tax (LOHUT) • 47 of 92 Counties have enacted this fund • To stay in the county • LRS formula determines the distribution between Cities, Towns and County • Used for Roads and Streets in the County Collected • Repair • Maintenance • Construction • Indiana Code 6-3.5-5

23. Cumulative Bridge Fund Major Bridge Fund CEDIT - County Economic Development Income Tax CAGIT - County Adjusted Gross Income Tax COIT - County Option Income Tax Other Sources ofRoad & Highway Funding

24. http://www.in.gov/dor/3614.htm County Tax Map Revised 01/08

25. What innovative ideas have other counties, cities & towns implemented? Other Sources ofRoad & Highway Funding • Interlocal Agreements / Cost Sharing • Non-motorized vehicles • Sale of Salvage Items • Disaster Relief Funds • Bond Issue • Cumulative Capital Development • Gaming Funds • Grants • Innkeeper Tax

26. We appreciate you taking the time to hear more about Indiana Road and Highway Funding Issues. For more information contact Indiana LTAP at (800) 428-7639 or view our website at www.purdue.edu/INLTAP