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Indianapolis mayor proposes changes to state road funding to bring $49 million more to city

The proposals would mean an additional $49 million in yearly funding for Marion County and $96 million total for the nine central Indiana counties.

INDIANAPOLIS — Indianapolis Mayor Joe Hogsett is proposing major changes to the state funding formula for roads.

Currently, the funding pays out on the miles of road based on the center line. That means funding for one mile of road is the same whether it is a 2-lane road or 4-lane road.

Hogsett wants the funding changed to the number of vehicle miles traveled – essentially counting the number of miles for each lane of traffic. He also wants a merger of the application-based Community Crossings grant program with local distribution of the Motor Vehicle Highway Account.

What that all means is an additional $49 million in yearly funding for Marion County and $96 million total for the nine central Indiana counties.

“We recognize that inaction on infrastructure funding may see not just our city – but the state as a whole – fall behind those with whom we compete for students, jobs, and residents,” Hogsett said.

The Indiana General Assembly will launch a task force in the coming months to explore how road funding is paid out.

Hogsett also announced proposed funding for neighborhood infrastructure and bike and pedestrian safety.

He's asking for $25 million for residential street improvements, $5 million for alley repair, more ticketing for cars parked in bike lanes, and flashing lights at county schools near thoroughfares that don't have infrastructure for pedestrians.

Hogsett's proposals come on the heels of the announcement of at the end of June that the city was receiving a $25 million grant from the Department of Transportation, which will be used to change several traffic flows and walkways.

The Rebuilding American Infrastructure with Sustainability and Equity RAISE award also funds significant road repair and intersection improvements.

The $25 million grant – the highest allowable award from this program funded by the Bipartisan Infrastructure Law – will be matched by a local commitment of more than $20 million for a total project cost of $46.5 million, according to the Indianapolis Department of Public Works.

Credit: The City of Indianapolis

The project will deliver road improvements from 38th Street to Interstate 70, and will include 16 intersection improvements, two new traffic signals and 12 signal modifications, 49 lane miles of resurfacing, 2 miles of multi-use paths, more than 300 curb ramp improvements, 3.5 miles of sidewalk improvements, and 5.5 lane miles of bike lane resurfacing.

Credit: The City of Indianapolis

The funding also supports the conversion of eight one-way thoroughfares in central Indianapolis to two-way directional traffic:

  • Capitol Avenue from 21st to 38th streets
  • lllinois Street from 21st to 38th streets
  • Pennsylvania Street from I-65 North to Fall Creek Parkway South Drive
  • Delaware Street from I-65 North to Fall Creek Parkway South Drive
  • Alabama Street from Washington to Michigan streets
  • New Jersey Street from Washington to Michigan streets
  • East Street from Washington to 10th streets
  • College Avenue from Virginia Avenue to Market Street

The project is expected to start in 2026 and be completed by the end of 2027.

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