As revelers fill the streets of downtown Indianapolis, raising pints and celebrating St. Patrick’s Day, lawmakers have been busy tackling pressing legislative matters inside the Statehouse. This week, discussions centered around road funding, the state budget, election reforms, and property tax relief. With six weeks remaining in the legislative session, policymakers continue to debate solutions to these complex issues.
Road Funding Takes Center Stage
There is a growing consensus that Indiana’s reliance on gasoline taxes to fund infrastructure is no longer sustainable. More fuel-efficient vehicles, advancements in automotive technology, and an increase in remote work have significantly reduced gasoline tax revenues. Lawmakers are exploring new ways to secure funding, and House Bill 1461 (HB 1461) is emerging as a possible solution.
• Tolling Highways: HB 1461 would grant the Indiana Department of Transportation the authority to request a federal waiver to toll interstate highways, with approval from the governor. Proponents argue this would generate billions in revenue and ensure that out-of-state travelers contribute to the maintenance of Indiana’s roads.
• Community Crossings Matching Grant Program: Established in 2016, this program has been funded through gasoline use taxes and vehicle registration fees. HB 1461 proposes a new allocation formula, dividing the initial $200 million into two portions—$100 million for all communities and $100 million for municipalities and counties with a wheel tax.
• Additional Funding Allocation: Starting in 2026, revenue exceeding $200 million would go toward railroad crossing remediation projects. By 2027, Marion County would receive $50 million if it can match the amount with local funding. Beginning in 2028, local governments must have a surtax and wheel tax to qualify for grant funds.
• Adjustments to Wheel and Excise Taxes: HB 1461 allows Marion County to raise its wheel and excise taxes beyond current limits while preventing double taxation by ensuring residents pay only one tax if both their county and municipality impose them.
Indianapolis Mayor Joe Hogsett’s administration has expressed support for the bill in its current form, though it may undergo changes as it moves through the legislative process.
State Budget: Optimism and Challenges
As Senate hearings continue on the state budget (HB 1001), there is cautious optimism about Indiana’s financial standing. For the third consecutive month, state revenue collections have exceeded expectations. February’s general fund revenue surpassed forecasts by 7.8%, or $94 million, and year-to-date collections are $150 million higher than anticipated in December.
Despite these positive trends, budget negotiations remain challenging. Lawmakers must balance competing funding requests from state agencies, universities, and local governments. The legislature is working to allocate resources efficiently while ensuring the budget remains fiscally responsible.
Election Reforms Spark Debate
School board elections in Indiana have traditionally been nonpartisan, but that could change under new legislation. A bill moving through the legislature would require candidates to declare a party affiliation—Republican, Democrat, independent, or nonpartisan—on the ballot.
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• Similar legislation in the House failed to advance beyond a third reading, and previous attempts to make school board elections partisan have not succeeded.
• Supporters argue that voters deserve transparency about candidates’ political affiliations, while opponents believe that school governance should remain free of partisanship.
Meanwhile, HB 1681 seeks to increase transparency in school funding referendums by requiring them to appear on general election ballots, which typically see higher voter turnout. The bill is scheduled for discussion in the Senate Elections and Apportionment Committee on March 17.
Property Tax Relief Efforts Continue
With concerns over rising property taxes, lawmakers are working on relief measures that balance financial relief for homeowners with the need to maintain local government services. House Speaker Todd Huston has outlined key goals, including reducing property tax bills in 2026 compared to 2025 and ensuring local governments have adequate resources.
• House Ways & Means Committee Chairman Jeff Thompson introduced a bill proposing long-term tax reforms, including separating property tax and local income tax collections.
• Amendments to the bill are expected as lawmakers navigate the challenge of balancing tax relief with municipal funding needs.
• Additionally, policymakers are considering consolidating certain government functions to improve efficiency and reduce costs.
With weeks remaining in the session, these proposals will continue to evolve. Lawmakers are seeking solutions that provide financial relief to residents without compromising essential public services.
Looking Ahead
As the session progresses, expect continued debates on road funding, tax policy, election reforms, and budget priorities. With legislative deadlines approaching, compromises will need to be reached to ensure Indiana remains fiscally sound while addressing key infrastructure and governance issues.
For now, as the city celebrates St. Patrick’s Day, lawmakers will keep their focus on the work ahead—finding solutions that benefit all Hoosiers. Stay tuned for more updates in the coming weeks.
