Interest sinks road projects | POLL

U.S. 41 widening delayed for years

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  • Because investments of Major Moves money have produced less interest revenue than expected, the state is postponing several projects in Vanderburgh County.

Do you agree with delaying road projects such as widening of U.S. 41 so Interstate 69 can move forward?

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Indiana officials have postponed a proposed widening of parts of U.S. 41 on the North Side and just north of Evansville, in part because interest revenue from a lease of the state's toll road hasn't poured into public coffers as quickly as expected.

According to documents first included in the state's Major Moves plan, construction crews were to add two lanes to the section of U.S. 41 from Diamond Avenue to St. George Road this year, and from St. George Road to Hillsdale Road in 2012. That work, estimated to cost about $85.1 million, is now scheduled to start in 2018 and 2019.

Will Wingfield, a spokesman with the Indiana Department of Metropolitan Development, said the slow economy has reduced the amount of interest brought in from investments of money raised by leasing the Indiana Toll Road, a deal that gave the state $3.8 billion in 2006.

Wingfield said INDOT revises its plans often, changing priorities in the light of new revenue projections and other information. He said every change cannot be traced back to money.

As for the proposed widening of U.S. 41, it has been taken out of the Major Moves plan altogether. The work is now to be paid for using the state's usual revenue sources for road projects, such as gasoline taxes.

Cher Goodwin, spokeswoman for INDOT's Vincennes office, said the revenue from that pot has fallen in recent times as well.

"Cars are more fuel-efficient, and motorists are driving less," she said.

Brad Mills, executive director of the Evansville Metropolitan Planning Organization, said he doesn't plan to protest the decision to postpone the projects.

"It's happening all over the state," he said. "It's not just our community that has lost projects."

And the proposed widening of U.S. 41 isn't the only project in this area to undergo changes. State officials, citing the same reasons, have revised Major Moves to exclude a proposed bypass meant to connect Ind. 62 just west of Boonville to Ind. 61 near the Boonville Country Club.

The $12.7 million project was supposed to start in 2015 but has been postponed to 2017.

Also canceled has been a study of entrances and exits along Ind. 66 between U.S. 41 and Yankeetown Road in Warrick County. The Metropolitan Planning Organization cited a lack of money as the reason for that decision.

In making the changes, INDOT officials have been careful to protect at least two projects important to residents of Southwestern Indiana: the construction of Interstate 69 and the rebuilding of the interchange of U.S. 41 and the Lloyd Expressway.

Goodwin said the original Major Moves legislation contained a provision setting aside $700 million of the lease money to build I-69 from Evansville to the Crane warfare center, southwest of Bloomington. Gov. Mitch Daniels has said he wants that part of the project finished by December 2012.

And Goodwin said the state will open bids for the construction of a cloverleaf interchange at U.S. 41 and the Lloyd Expressway in October 2011. The project will allow INDOT to remove the stoplights now on the north and south sides of the Lloyd, she said.

Wingfield said the bad economy has had a good side. In many parts of the state, competition among contractors has driven down bid prices greatly.

"We are still doing about double the average construction amount in a given year," he said. "And we are doing that in a down economy."


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Comments » 12

bruiser3191984#115912 writes:

This project was needed 10 years ago. Now we have to wait another 8 to 9 years for the beginning of the project, plus a year or 2 for completion? This is unacceptable. Meanwhile, we have unneccesary road projects going on (the construction on Virginia/Oak Hill roads). Indiana really needs to get better at prioritizing their construction projects.

whadouthink (Inactive) writes:

Do I smell a gasoline tax rate hike? If toll road revenues are down why not make the expressway to Indy (I69) a toll section from EVV to there? Everyone can't seem to wait until it's done so they can cruise unabated between here and there. So it could be a huge revenue stream if folks were forced to put their money where their mouth is.

silvz71 writes:

Instead of this project (which I agree is necessary) I wish they would just work on some of the roads around Evansville....main road, back roads, neighborhoods....there are so many potholes and uneven pavement. It's just terrible on your vehicle and sometimes it's dangerous! (swerving to miss a pothole)

Noshadesofgrey writes:

Indiana benefits in two ways from gasoline sales. First the tax per gallon on gasoline (less gasoline sold, less tax) and Secondly the sales tax on gasoline (higher per gallon cost, higher revenue). I don't think that the per gallon gas tax will go up this year or in 2012, but you never know about 2011.

I am also one that feels that we should prioritize our highway projects. Indiana has a bad case of doing a project, and then redoing it (Fulton Avenue, Highway 41 intersection, and Burkhardt intersection). Toll roads would not be a terrible idea, but I-69 was already sold as no toll (I wouldn't mind to pay a couple of bucks for a straight shot). Let's face it, KY has a nice little system of limited access highways from tolls.

balearic writes:

road maintenance (potholes etc.) is the responsibility of the public agency that owns the road. Same scenario applies to the desire to see more (or less) local road projects at the expense (or benefit) of INDOT projects. Totally separate issues and funding.

JMNSHO writes:

I'd like to see the list of delayed projects from Central and Northern Indiana before I form a firm opinion on these delays. My bet is that our area took the biggest hit (as usual). Ain't it great being from the "donor" part of the state?

Johnny_Vanderburgh writes:


'We are still doing about double the average construction amount in a given year,' he said. 'And we are doing that in a down economy.'"

So the state doesn't have enough money to do all of their planned road projects, but the cost of the projects they are doing is low enough that they can do twice the work they anticipated.

I don't get it.

radioriot#161981 writes:

Well either the story is not clear or I'm not clear... If we leased(sold) the highway for 3.8 billion then we should be recieving interest from investing that money and not dependant on the tolls collected. That was the risk the leasor took, not the state. We should have 3.8 billion in the bank. Why is it dependant on tolls, that's their problem not the state's unless ol' Mitch double crossed us. I thought we got money up front? Come clean Mitch, what's the real deal? We should be getting pretty healthy interest on 3.8 Billion with a B, even in a down economy.

Jlutin writes:

The money came from the toll road and was invested. When it was invested, interest rates were much higher. The state (wisely) did very safe, short term investments but the returns have gone down as interest rates have gone down. So there is fewer funds available that was forecast.

As far as the Gas tax, it has not been raised for 15 years. The number of miles driven is down and the fuel economy is up so fewer gallons are needed per mile driven. All that means fewer dollars are going into the fund. If you want improved roads or new highways after major moves is over, it will have to be raised. No way around it. If nothing is done, the State will barely be able to maintain current roads. It's simple math and there is no free pot of money to grab.

Mike01 writes:

in response to josepoman#6036:

(This comment was removed by the site staff.)

I wondered about Greenpeace or some other environmental group myself.

It's interesting that the investigation of the explosion is being ignored, but the demonizing of BP is prevalent.

And this "leak" about a gas bubble causing that is laughable.

yesman1000#124862 writes:

Perhaps area leaders in ten years will figure out that creating overpasses along US 41 will be more beneficial to economic development than creating an extra lane of traffic that will inevitably babe to stop at the numerous stop signs along the stretch of road. I can't figure out how leaders were able to get US 41/Diamond Ave. right and not learn to incorporate the concept throught the entire city.

As far as gas prices, I don't think we will ever see a difference prices if people start buying fuel efficient cars. California really pushed for hybrid cars, but they saw an enormous dip in their road funding from the gas tax. The result was a huge increase in the gas tax and similar gas prices at the pump for consumers.

Assuming gas prices remain comparable, I think the biggest question that remains is whether or not people want to do something to lessen the amount of air pollution that we create with our vehicles.

dll57 writes:

Another one of Mitch's major moves taking the money north.
