Lawmakers Agree To Spend $1 Billion On Transportation Without Tax Increase

Gov. Mike Pence won the battle with House Republicans to provide more funding for roads and bridges without raising taxes. Lawmakers have agreed to draw down state reserves, redirect sales taxes collected on gasoline sales and release funds now held in trust for local governments to help fund $1 billion in additional spending.

Lawmakers will also approve $42 million in pork barrel spending for a third regional cities initiative on top of the $84 million he handed out last year. These funds are used on pork barrel spending projects that reward large campaign contributors supporting Gov. Pence's re-election campaign. "Governor Pence couldn't be more grateful that leaders of the House and Senate have agreed to invest more than $1 billion in Indiana's roads and bridges and fully fund the Regional Cities Initiative," said Kara Brooks, a spokeswoman for Pence.

As a bone to House Speaker Brian Bosma, who wanted to raise gas and cigarette taxes to fund more spending on roads, the plan includes $10 million for a teacher scholarship program, which is premised on the myth that there is a shortage of people available to teach at Hoosier schools. The new program pushed by House Republicans will get $10 million from the tax amnesty revenues. Gov. Pence did not get the additional $240 million in borrowing authority he had originally sought to spend on roads and bridges.