Indiana Gov. Mike Pence proposed a funding plan that calls for $1 billion on state road and bridge improvements.
Pence’s 21st Century Crossroads plan would be funded through a combination of using some of the state's reserves, creating new spending and borrowing money through bonding. But he said no new taxes would be required.
About $241 million would come from reserves at the end of the fiscal year, reducing reserve funds to 11.5%of the state budget. Pence wants the legislature to approve another $450 million in new spending over a three-year fiscal cycle ending in 2020. The plan also would also take $50 million in interest out of the Next Generation Trust Fund and borrow $240 million through bonds.
Most of the spending increases will require legislative approval.
The governor’s proposed spending plan was criticized by Democrats for being too small and not immediate enough.
“Even now, the governor makes what he calls a ‘significant’ infrastructure investment with traditional construction season winding down and no new dollars available until July 2016," Senate Democratic Leader Tim Lanane said in a statement. “We can repave state highways all we want, the fact is the majority of roads in the Hoosier State are maintained by local governments."
