Hogsett, council leaders divided over road funding
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City leaders agree our roads need help, just not on how to pay for it. Photo: Arika Herron/Axios
A debate over how to fund improvements to the city's crumbling roads is dividing city leaders.
The big picture: Council Democrats introduced a plan to raise the vehicle excise surtax and wheel tax for the first time in more than 30 years at Monday's Indianapolis City-County Council meeting.
- The significant annual fee increases are expected to raise $70 million in revenue to go toward roads, in addition to $20 million identified through budget efficiencies.
- The state money has to be met with a match of $50 million next year, increasing to $100 million by 2031.
Driving the news: Mayor Joe Hogsett, who has been staunchly opposed to raising taxes during his tenure, issued a statement criticizing the proposed hike.
- Hogsett's office says it has a plan to meet the $50 million match required next year and will continue to find creative ways to meet the match without raising taxes in future years.
- In addition to the $20 million already planned for in the budget, Hogsett wants to use $5 million from stormwater fees and an additional $25 million from the supplemental property taxes the city receives from the state each spring.
Yes, but: That supplemental payment can be unpredictable.
- The state received $19.5 million this year, which a separate proposal introduced Monday night would divide among city priorities that include roads but also things like homelessness initiatives, park safety upgrades and a reading program.
Reality check: The council can pass the tax increase without Hogsett's support.
- After passage, the mayor can sign or veto the law.
- The council can override a veto with 17 of 25 councilors in a separate vote.
What they're saying: "The $50 million match is a generational investment by the state of Indiana into Marion County," Councilor Andy Nielsen said. "Our plan ... ensures the City of Indianapolis can count on that money every single year."
Between the lines: The proposal has been sponsored by a dozen of the council's 25 Democrats and is likely to pass.
- Nielsen said the Democratic caucus is working every day until the vote to ensure they have enough votes to override the mayor's veto, should it come to that.
What's next: Three public comment sessions are scheduled for the next several weeks — June 9, 11 and 16 at 5:30pm at council committee meetings.
- A final council vote is expected in July.