The pressure is on for the Northwest Indiana Regional Bus Authority to find long-term funding for regional transportation efforts.
Its funding source, the Northwest Indiana Regional Development Authority, has said it will stop funding operating costs for bus services by a firm deadline of December 2011. That means if the RBA wants to seek funding from the state or request a referendum, the upcoming legislative session is when it needs to happen.
Right now RBA leaders say they aren't ruling out any source of funding, be it state, local or a combination of both.
However, the RBA could run into challenges. The head of the Indiana House's fiscal committee said he doesn't believe Lake County has exhausted all local efforts to pay for bus services. State. Rep. Jeff Espich, R-Uniondale, questioned why the RBA would lobby the state for a funding mechanism when Lake County hasn't adopted an income tax.
"It doesn't seem to be much of a point of hanging any additional tax authority out there," Espich said. "They haven't exercised the opportunities they have currently."
Espich's Senate counterpart, Appropriations Chairman Sen. Luke Kenley, called a referendum the RBA's best bet, but the Noblesville Republican mentioned an income tax as one of the most likely funding sources.
"That's going to be the only way you're going to be able to get any significant levels of funding to get the consent of the governed to do something like that," Kenley said. "It will probably have to be an income tax or some other regional tax, maybe a food and beverage tax."
Porter County already has an income tax, but Lake County is the only Indiana county without one. Whether the Lake County Council will take up an income tax again is unclear. Both new Republicans on the board ran on campaigns that they wouldn't vote for such a tax.
RBA Executive Director Tim Brown maintains it's too early to tell what will happen. This year is a budget session, so the Indiana General Assembly convenes for a longer period of time.
"We are in a long session," Brown said. 'It's not even starting yet, and there are all kinds of speculation. There's a long way to go between now and then. There are all kinds of initiatives out there that need to be addressed. Transit happens to be one on a very large list. I'd hate to say that we'd have to go to one source, or another source. I don't want to shut the door on any option."
Brown wants a solution that would be workable anywhere in the state. Indiana Transportation Association Executive Director Kent McDaniel said a major goal for this session is for lawmakers to create some kind of funding source that would allow multiple municipalities to opt into regional transportation systems. State law provides for transit authorities like the RBA, but doesn't speak to a funding source.
"It doesn't mean increasing taxes. It gives the local area an opportunity to look into it and decide for themselves," McDaniel said. "I've been telling people for years and years if you really want to do something about regional transportation you need to get all the politicians in Central Indiana, often dominated by Republicans, and get all the Democrats that are strong and organized in Northwest Indiana. Get those two groups together, heading in the same direction, if you really can do that, you can accomplish something."
Brown contends in the series of income taxes available for a county to adopt none are strictly for transit.
"Tell me which one says it's specific to transit," Brown said. "There isn't. Language doesn't exist specifically saying there's a county option income tax which 'x' percent goes to transit. Most offset property taxes in a major way. Something needs to change in the formula or change in the distribution."
RBA board member and Lake County Council President Tom O'Donnell said he has heard the expression Lake County needs to use "the tools in its tool belt" time and time again. If Lake County passes a 1 percent tax, the funds could only be used for property tax relief.
"That doesn't fund one bit of public transportation," said O'Donnell, a Dyer Democrat.
Lobbying firms on board
The RBA board last month approved $72,000 in contracts with two lobbying firms. One of those was Krieg-Devault, and law firm partner and longtime community activist Calvin Bellamy will lead the RBA's local communication efforts.
It's impossible to talk specifics on long-term funding for transit because "everything is up in the air," Bellamy said.
"We're just starting down this process to see what our government officials are thinking about the value of buses," Bellamy said, "and how they could be funded."
Bellamy has been warned the chance of funding from the state is remote. The RBA and Bellamy will meet with state Rep. Ed Soliday, R-Valparaiso, to discuss options. Soliday is drafting a bill to reorganize the 21-member RBA board.
"Long-term funding for a regional bus system has to come from a combination of sources, including local sources," Bellamy said, "and in this climate you're not going to get a great deal of support from the state ... Rep. Soliday is focusing mostly on reorganizing the board, which you know that perhaps is an important piece in the puzzle, but that doesn't produce dollars."
Under Soliday's reorganized board, the regional agency would be comprised of Lake County and then other municipalities could opt in by a vote of their fiscal bodies. The board would also have a deadline to turn in a funding plan.
"I have a heart in making the bus system up there work but you can't make bricks without straw if the locals won't put anything in," Soliday said. "I don't think Lake County has ever sat down and said, 'Do we want this bus system if we have to pay for it?'"