More than $850 million for road and bridge preservation will be available soon for Indiana counties, cities and towns thanks to recent legislative action.
Senate Enrolled Act 67 (SEA 67), provides a one-time distribution of more than $430 million from local income taxes held in reserve by the state will be distributed to cities and towns by June 1. House Enrolled Act 1001 created a new annual matching grant program for local roads and bridges.
It’s important to know which funding source can be used for what projects to maximize the results in your community!
Highlights of Senate Action
For counties and municipalities, 75% of the money must be spent on local road and street infrastructure or placed in the Rainy Day fund. The other 25% may be spent on any purpose. The special distribution money may be spent on the following items:
- Engineering, land acquisition, construction, resurfacing, maintenance, restoration, or rehabilitation of both local and arterial road and street systems;
- Matching a grant from the local road and bridge matching grant fund under IC 8-23-30; or
- Purchasing, renting or repairing highway equipment;
- Paying the principal and interest on bonds sold primarily to finance road, street, or thoroughfare projects;
- Local costs required to undertake a recreational or reservoir road project under IC 8-23-5;
- Capital projects for aviation related property or facilities, including capital projects of a board of aviation commissioners established under IC 8-22-2 or an airport authority established under IC 8-22-3-1.
Highlights of House Matching Grants
In order to receive 50/50 matching grants from House Enrolled Act 1001, municipalities must have an INDOT approved Transportation Asset Management Plan. Grants, with an expected cap of $1 million, cover:
- Road and/or bridge preservation projects (i.e. resurfacing, crack sealing, etc.)
- ADA related improvements.
Matching sources may include the SEA 67 approved special distribution, rainy day funds and revenues from wheel/excise taxes. In Fiscal Year 2017, an additional $150-185 million will be available. An additional $70 million will be available in 2018 and another $100 million will be available in 2019.
The first call for projects closes on July 3; the time to act is now on this new grant opportunity. If you don’t have your Transportation Asset Management Plan prepared and approved, you will not be eligible to apply for grant money.
At F&V, we understand the new funding requirements and are ready to work with you to combine funds and create opportunities to get the most accomplished this year. Additionally, we can provide value-added benefits in our Management Plans that include GIS integration, capital improvements planning, real-time progress updates, annual revisions to the plans, etc.
If you have any questions, please contact us!