Senators eye sales tax for road needs

Associated Press

TOM LoBIANCO,Associated Press

Updated: Jan 24, 2013 3:53 PM

INDIANAPOLIS (AP) — Indiana lawmakers looking to plug a hole in state transportation spending are considering diverting the state's sales tax on gasoline to transportation.

Senate Appropriations Chairman Luke Kenley says dedicating the roughly $500 million generated from the tax should be considered as one option to pay for pressing transportation needs.

The state is facing a sharp decline in transportation revenues with most of the money from the 75-year lease of the Indiana Toll Road already spent or allocated and a roughly $100 million decline in gas tax collections.

Democratic Senate Minority Leader Tim Lanane said Thursday that the state's counties and localities also urgently need more road money.

Kenley and Lanane said they were glad Gov. Mike Pence included more transportation money in his first state budget.

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