City-county councilors could lose the ability to handpick infrastructure projects that benefit their districts after a state lawmaker criticized the process.
A proposed amendment to Senate Bill 179, a road funding bill, would forbid county councils from using state road funding for projects picked by individual councilors.
While it would apply to all Indiana counties, the proposal appears to be targeting Marion County.
It comes after Mirror Indy reported last year that some city-county councilors used their share of a $25 million pot of money to fix roads in front of their homes or near their workplace.
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That caught the attention of Rep. Jim Pressel, a Republican from Rolling Prairie in northern Indiana who chairs the House Roads and Transportation Committee where the bill is being heard.
Pressel said he was concerned that the city was using a “loophole” to circumvent Indiana law.
In order to qualify for state-matched road funds, Indiana counties have to submit an asset management plan that details roads and bridges that need improvements.
Pressel questioned why the city didn’t put councilors’ projects in its asset management program, instead letting councilors select their own projects.
Councilor Andy Nielsen, who represents parts of the east side, told Pressel that the $25 million for councilor projects came from tax revenue that went unspent the previous year. It’s unclear if other Indiana counties have adopted a similar practice of letting council members pick projects for their districts.
“I think the idea there was to provide some flexibility with our most flexible source of funds — local income tax dollars, primarily — to meet those targeted infrastructure needs,” Nielsen told Pressel.
Pressel also takes issue with how some of the councilors allocated the funds.
“Rumors are rumors, but I’m told that a couple individuals on the council actually paved roads going to their house,” Pressel said during a Feb. 9 committee meeting. “One member paved a street going to his office. I personally take offense to that because of all the pains we went through in House Bill 1461.”
GET THE BACKSTORY
Indy councilors use $1 million fund to pave their own streets
Some councilors are using taxpayer dollars from a one-time fund to fix streets in their own neighborhoods.
Pressel is referring to a 2025 law that allows Indy to receive up to $50 million in additional state road funding each year — so long as they come up with a $50 million match.
Nielsen responded that councilors have “learned from that process and are adapting going forward.”
Questions surround $50 million match
Nielsen, meanwhile, has his own concerns about the proposed changes to the state’s road funding bill.
He told the committee the amendment, as written, could make it more challenging for the city to come up with $50 million in matching funds.
It specifies that the city must identify new revenue sources each year for the $50 million match, which concerns Nielsen.
“Our position is that a new dedicated revenue source would be used to match the fund in perpetuity,” Nielsen said, speaking on behalf of the council. “We want to have conversations on how we can get that language right.”
Pressel did not address Nielsen’s concerns.
A spokesperson for Mayor Joe Hogsett did not directly answer a question asking whether the mayor shares Nielsen’s concerns. In a statement, spokesperson Aliya Wishner said the city remains “committed to working with the council and the general assembly to secure road funding for our community.”
What’s next?
State lawmakers are expected to take up the amendment to Senate Bill 179 at the next meeting of the House Roads and Transportation Committee, which generally meets Mondays.
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Peter Blanchard covers local government. Reach him at 317-605-4836 or peter.blanchard@mirrorindy.org. Follow him on X @peterlblanchard.
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