Top Legislation

• The protection of the Major Moves road construction program remains the highest funding priority of the Indiana Construction Association.
• The long-term lease of the Indiana Toll Road, known as Major Moves, was approved by the Indiana legislature and Governor in 2006. The proceeds from the lease agreement were then dedicated to state and local road and bridge construction budgets, which makes Indiana unique among cities and states who have implemented such agreements.
• After several off-the-top distributions were made as required by law, about $2.6 billion was placed into the Major Moves Construction Fund (MMCF) to earn interest, for which the principal and interest would then be used toward the funding of the Indiana Department of Transportation's 10 year plan.
• ICA opposes the diversion of the MMCF funds for any purpose outside of the INDOT 10 year construction plan.
• ICA also opposes any attempt to borrow the MMCF for a defined or undefined amount of time for other state services.
• Finally, ICA opposes any attempt to delay or otherwise put conditions on the payment of the Major Moves funds to INDOT for their construction purposes.

• ICA supports efforts to penalize contractors that improperly classify workers as independent contractors rather than employees as long as the requirements are not overly burdensome for contractors that properly classify workers.
• Legislation proposed in 2008 would have created administrative burdens for industry.
• While ICA agrees with the intent to provide penalties for contractors that don’t withhold taxes or provide workers compensation for workers, ICA also doesn’t think such legislation should create undue administrative burdens for contractors that abide by the law.
• ICA is working with building trade unions to develop balanced legislation.

• Indiana's local governments are facing a road funding crisis. The total dollar amount available to local government is decreasing, while the costs of construction are increasing dramatically, such that even the maintenance of existing roads is in question. Capital road and bridge projects, often vital for economic development or motorist safety, are becoming scarcer.
• With the recent increase in gas prices, there has been a substantial impact on the amount of gas tax revenues available for road projects. The nation, and Indiana, is experiencing travel declines not seen since 1979, and subsequent decreases in the gas tax collected.
• Local construction budgets could decrease by as much as 10 percent in this fiscal year, compared to last.
• Worsening the effect, several state agencies are funded by "off-the-top" expenses of the MVH, including the Indiana State Police, the BMV and others. These budgets are funded regardless of changes in gas consumption, leaving the road and street budgets to bear the full burden of these changes.
• Further, the cost to construct roads is increasing rapidly. Due to increased global demand of materials and the increasing oil prices, construction costs have increased 50 percent since December, 2003 (while inflation has only increased 15 percent in the same time). The cost increases are expected to continue at an annual 6-8 percent rate for the foreseeable future.
• It is becoming increasingly difficult for local governments to find any resources to fill these gaps. Purdue's LTAP has estimated that local governments are facing $2.25 billion of immediate road and bridge needs and $602 million of annual needs thereafter, in addition to what they are spending now from the federal, state, and local funds.
• ICA supports efforts by the Indiana General Assembly to provide additional funding for local road projects.
• Further, ICA supports measures to remove the Indiana State Police and other state agencies out of the MVH and LRS distribution process.

• ICA supports limiting the amount of work government agencies can self-perform.
• ICA supports open competitive bidding.
• ICA supports reducing retainage levels withheld by state and local government agencies.

• The current federal road program’s authorization will expire on September 30, 2009. With that expiration, if no new legislation is approved, there will be no guaranteed source of funding for the Indiana Department of Transportation and local highway departments.
• This guaranteed funding, usually set for 5 or 6 years, is vitally important to both the highway departments and the members of ICA. Without it, programs for the next one or two years are unknown, leading to unexpected declines or surges in program levels.
• While the passage of the new highway legislation is important, however, so is what is actually included in the bill. Because of the decline in driving due to high gas prices, the funding for the next bill could be in question.
• In the years after FY09, the levels will drop dramatically unless more funding is made available. As projections stand now, the revenues needed to support the FY09 program won’t be available again until the reauthorization bill in 2016 or thereafter.
• ICA supports, at a minimum, increasing Indiana’s federal highway funding from FY09 levels.