From the Desk of...
News and Topics of Interest

    The ISTEA and TEA21 legislation were landmark bills that set the tone and provided for a sizable increase in funding to the state of Indiana, its metropolitan planning organizations and rural communities.  Indeed, among the important achievements that the Transportation Equity Act for the 21st Century set forth when it was enacted back in 1991, were community friendly enhancement activities, bike and pedestrian planning, and an emphasis on a comprehensive, cooperative and coordinated planning process, which enhances public involvement.  The TEA21 legislation provided substantial gains in Indiana's gas tax dollar returns.  Prior to TEA21, Indiana and its urban and rural partners received less than 80 cents for every dollar it spent in tax gas revenues.  TEA21 guaranteed "donor" states like Indiana a 90.5 cent return on each gas tax dollar, nearly doubling its share of the pie by 2002.

    Yet, Indiana is still not receiving its fair share.  Michiana Area Council of Governments, in a resolution passed during its October 2002 Policy Board Meeting, supports an increase of the minimum guarantee return provision of TEA21 on all funds distributed to 95% of every gas tax dollar Indiana sends to the Highway Trust Fund.  Increasing the guaranteed return of 95% alone would net Indiana nearly $30 million dollars in additional federal funds annually.  And, providing a minimum guarantee of all distributions on average could increase Indiana's share by as much as an additional $22 million dollars.

    Currently, half of the federal fuel tax on gasohol is 5.3 cents less per gallon than for gasoline.  Part of that tax goes to the General Fund (2.5 cents per gallon...not the Highway Trust Fund).  When combined, the Highway Trust Fund (highway account) actually loses 7.8 cents in revenue for every gallon of gasohol consumed.  That is a $1.25 billion loss to the Highway Trust Fund in FY2002.  The Michiana Area Council of Governments also supports the position that all motor fuel taxes paid by highway users be deposited into the Highway Trust Fund and distributed to the states, MPO's and rural communities to ensure the maintenance and improvement of our national transportation system.  Achieving the minimum guarantee on all distributions and all fuels would increase Indiana's share of the pie by nearly $54 million dollars annually.

    There are twelve Metropolitan Planning Organizations in the State of Indiana.  The 2000 Census identified two additional urbanized areas in Indiana that will be required to either participate in an existing, or develop a new, MPO.  The addition of new urbanized areas will be drawing from the current resources of established MPO's.  Planning funds are currently 1% of the STP category of funds distributed through TEA21.  An increase to address the increasing requirements and the addition of new MPO's should be adopted as part of the new reauthorization act as it is being considered.

    The current Transportation Equity Act for the 21st Century sunsets September 30, 2003.  The Indiana Department of Transportation is working diligently with its congressional, federal, state, local and the Indiana Metropolitan Planning Organization Council partners to enhance its opportunity to provide positive results for Indiana during the formulation of the TEA21 reauthorization.  Improvements to Indiana's infrastructure, highways, public transit, bike and pedestrian projects are vital to Indiana's economic success, particularly in today's highly competitive world.

Detail provided by Laurie Maudlin, INDOT "TEA21 Reauthorization - The View from Indiana"