Indiana shifts $130.45M to restore June road funding for INDOT and local governments
The State Board of Finance approved three transfers totaling $130.45 million from the State Highway Fund’s existing balance to replace road revenue lost in June during Gov. Mike Braun’s gasoline tax suspension. After distributions, $72.17 million will return to the State Highway Fund for INDOT and about $58.3 million will go to counties, cities and towns.
State officials approved three transfers that together total $130.45 million to replace June gasoline-tax revenue that would normally flow to road accounts. The largest move sent $89.39 million to the Motor Vehicle Highway Account (including $9.65 million in gasoline use-tax revenue and $79.75 million in excise-tax revenue); separate transfers of $26.58 million and $14.47 million were directed to the Highway, Road and Street Fund and the Local Road and Bridge Matching Fund, respectively.
After the routine distribution process, State Budget Director Chad Ranney told the Indiana Capital Chronicle that $72.17 million will return to the State Highway Fund for the Indiana Department of Transportation and roughly $58.3 million — including $43,805,267.02 in direct distributions — will go to local governments. The state comptroller began processing payments immediately; local units are expected to receive funds within two to three days. This is the second reimbursement round tied to the ongoing gas tax holiday, and another transfer could be considered in September.
BusinessIndy examines this development and its implications for Indiana businesses and communities using the linked sources.
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