Indiana DOT Moves Roadway Extension Project Forward through State/Federal Fund Swap Program

AASHTO Journal, 30 May 2014

Indiana Department of Transportation officials have advanced a roadway extension project in Shelbyville through a federal/state transportation funding swap. This is the third project in the state to take advantage of the program.

According to INDOT, the state sets aside a portion of its federal highway funding every year for local transportation projects. House Enrolled Act of 1067, which was passed in 2013 by the Indiana General Assembly, allows INDOT to swap $1 in federal funds for 75 cents in state funding. The program dictates that local government project costs are reimbursed by INDOT. Local governments must pay at least 10 percent of the project cost (which is less than the 20 percent match required for federal-aid contracts).

“When local units receive federal funding for transportation, there are often many strings attached,” Rep. Bob Cherry (R-Greenfield), sponsor of House Enrolled Act 1067 that authorizes the federal funds swap, said in a statement. “Under the federal exchange program, local units will be able to fund more road and bridge projects. This puts another tool in the toolbox for local government. It’s a win-win for both state and local units.”

The funds will extend Fairland Road south of Interstate 74 in order to reduce heavy truck traffic and cut congestion in downtown Shelbyville, a roughly $906,000 undertaking. This roadway extension will ultimately make the area safer for pedestrians while also making the area more attractive for businesses, two factors that will increase quality of life in the area.

“Over the years, federal laws and regulations have increased the time and tax dollars needed to improve Indiana’s economy and transportation safety,” said INDOT Chief of Staff Troy Woodruff. “We wish our federal funds exchange program could be bigger, but it is limited by the state funds we need to match the federal dollars appropriated by Congress.”

Additional information on INDOT’s local public agency program is available here. The legislation text is available here.

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