INDOT commissioner: Revenue keeping pace with inflation for now
INDIANAPOLIS (WISH) — Michael Smith, the commissioner of the Indiana Department of Transportation, on Monday said his staff will need to plan projects carefully as inflation sets in.
Smith’s remarks came during an event kicking off National Work Zone Safety Week and the summer construction season. When reporters asked Smith and Gov. Eric Holcomb about the twin effects of high gas prices and inflation, both said extra fuel tax revenue due to gas prices has offset inflation so far. INDOT gets most of its budget through a combination of general tax revenue and dedicated fuel tax funding. After setting records in March following Russia’s invasion of Ukraine and subsequent oil embargoes against Vladimir Putin’s regime, gas prices in Indianapolis dipped below $4 per gallon late last week. The most recent federal data put inflation at 7.9%, the highest since early 1982.
“For right now, we’re in a good spot but certainly we’ve got some challenges ahead on higher prices,” Smith said.
Smith said lawmakers gave INDOT about $1.9 billion for construction projects for the current budget cycle. Those include the ongoing reconstruction of the I-65/70 North Split interchange in downtown Indianapolis, the completion of I-69 south of I-465, and a new interchange between I-465 and I-69 near Lawrence. Holcomb said drivers can expect to encounter numerous smaller projects as well.
“Oftentimes when you’re thinking about congested areas, you’re thinking about big urban centers and some of our state’s biggest, most expensive projects are in urban areas,” he said. “But it’s all relative and you can be distracted anywhere. You can be distracted on main street in a small town or on 465.”
INDOT officials said excessive speed is by far the No. 1 contributing factor in crashes, especially those that cause serious injury or death. They said crews recently started stationing queue trucks a few miles ahead of construction zones to encourage drivers to start slowing down early. They said reducing the need for hard braking has cut serious crashes by 80%. Officials said drivers also should heed Indiana’s hands-free phone law.