The Indiana General Assembly is about to experience a major change in leadership. Senate President Pro Tem Rodric Bray announced today that he will not seek to continue leading the chamber. This news is not entirely surprising, considering the political pressures lawmakers faced after deciding not to pursue a President Trump-backed early redistricting effort in December.
Sen. Bray’s decision to step down will bring changes to the Senate just before the next budget-writing cycle. This shift is even more significant because Sen. Travis Holdman, a key Republican fiscal leader, lost his primary bid. When explaining his decision, Sen. Bray said the Pro Tem’s job is “to represent and look out for his caucus members.”
According to the news release, “Given promises to recruit and fund primary challengers for any senator who supports Bray’s bid to remain the leader of the Senate, he has determined he will not put members in jeopardy from their own party simply because he is asking members to support his re-election as Pro Tem.”
With these changes happening, the Build Indiana Council is increasing our grassroots efforts. We are meeting with lawmakers and legislative candidates during the interim to build stronger relationships and discuss the challenges facing the road and bridge industry. Our ongoing work will help us as we get ready for budget negotiations.
GAS TAX SUSPENSIONS
The state’s suspension of gas sales and excise taxes is set to end on August 6, and many people in our industry are watching to see what state leaders decide. Gov. Mike Braun originally put the suspension in place to help keep gas prices lower for Hoosiers as costs rose during the conflict in the Middle East. Now that his emergency powers have expired, he will need approval from the General Assembly to extend the suspension.
The BIC team has not heard any definite news about lawmakers holding a special session, so we will keep a close eye on this situation next week. Indiana’s gas taxes provide important funding for roads and bridges, and it is not clear how long the suspension can continue without affecting state and local infrastructure budgets. The state has taken steps to make up for any losses local governments might face from the suspension, but we still do not know how this will affect the Indiana Department of Transportation’s budget.
In recent weeks, some local governments have made moves on taxes to make themselves more competitive for state transportation grants. Greenwood implemented a new wheel and vehicle excise tax this month to help maintain roads.
“We’ve been hearing lately through the grapevine that there will be more changes to road funding coming, and that we’re going to have to have one if we want to participate in some of the road funding grants through the state,” said Greg Wright, the city’s controller. “I know it’s not going to be popular, but at the same time, neither are potholes, you know.”
FEDERAL UPDATE
In a development on the federal level: The Senate next week could move forward with a temporary spending bill and an extension of the 2021 infrastructure law before the August recess. The details of these measures are still being worked out but would likely extend funding and programs through December 11. Our federal partners at ARTBA led a group letter to Congressional leaders, signed by more than 60 national organizations, urging them to keep supporting all surface transportation programs in any extension.
