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MPO staff flags changes in House Bill 41461 that could alter local road funding and bridge responsibilities

3237890 · May 9, 2025
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Summary

MPO staff outlined provisions in House Bill 41461 affecting local motor vehicle highway fund uses, bridge responsibility allocation, possible tolling authority for INDOT, and new township requirements for capital improvement plans.

Doug, MPO staff, briefed the Policy Board on House Bill 41461 and highlighted several provisions that could change how local governments use motor vehicle highway dollars and how INDOT approaches tolling and bridge responsibility.

"The bill lowers the percentage of funds distributed to counties, cities, and towns from the motor vehicle highway account that must be used for construction, reconstruction, and preservation of a local unit's highway if certain conditions related to pavement quality are satisfied," Doug said. He also told members the bill allows INDOT to move forward in setting up tolling and reallocates responsibility for bridges between counties and municipalities based on bridge size and location.

Doug said the bill also includes changes to the Community Crossings program and requires townships to adopt an annual capital improvement plan. He referenced a forthcoming study committee to examine appropriate road funding formulas. On tolling, he said he would "not be surprised" to see future tolling on I‑65 and I‑70.

A board member asked for clarification about whether the bill reduces allocations to cities. Doug replied: "It's not lowering the amount, but it's lowering the amount you have to use on construction, reconstruction, or preservation," explaining his reading of changes to how internal percentages within the motor vehicle highway account can be applied.

Doug offered to circulate more detailed information to members. The board did not take formal action on the bill during this meeting.