Indiana considers using "next generation" trust fund

Indiana’s “next generation” trust fund might be used by a room of current grandparents after all.

The pile of cash, which was created in 2006 after the leasing of the Indiana Toll Road, was not supposed to be tapped for decades, but some state lawmakers feel they are left with no other choice. Unemployment in the area is at 8.2%, Indiana’s highest jobless rate since February 1985.

“Sometimes sacred cows make the best hamburger,” Rep. Terri Austin told the Northwest Indiana Times, noting that the trust fund is only earning a 2.3% investment return.

On Feb. 5, Democrats by a voice vote added $500 million of that sacred money to a Republican plan that already contained $500 million, driving the total to $1 billion for road and bridge projects. The Republican amendment, which was cleared by a 100-0 vote, would split $250 million in state highway funds and another $250 million in anticipated federal stimulus dollars between cities and counties.

“I was not happy about the (Democratic) amendment because I think you need to preserve something for the future,” Rep. Ed Soliday told the Northwest Indiana Times. “I hate to steal the nest egg until the wolf is really at the door.”