Former Gov. Mitch Daniels' Newsroom

Contact: Jane Jankowski, Brad Rateike
Phone: 317/232-1622, 317/232-1800

For Immediate Release: Oct 13, 2006
Local governments receive $75 million in additional funding

INDIANAPOLIS (October 13, 2006) - For the first time in five years, local units of government across the state today received direct state support for their bridge and road projects. The first of two $75 million motor vehicle highway fund (MVH) distributions to all 92 counties through Governor Mitch Daniels' Major Moves initiative was completed today.

"The huge transportation shortfall Major Moves addressed was not state government's problem alone. From my travels to cities and towns across the state, I've seen firsthand the need to help local governments address their own infrastructure needs," said Daniels. "Companies looking to locate in Indiana don't care whether the roads they would use bear a federal, state or local designation. First class transportation infrastructure at all levels is vital to our future economic comeback."

The governor proposed the MVH distribution when he announced the Major Moves program in January. Counties, cities and towns had not received such funding for local projects for the past five years. The funds are being distributed based on the current motor vehicle highway fund formula. The state transferred the first $75 million to local governments today via electronic transfer. The second $75 million will be distributed next year.

These funds are on top of the more than $10 billion the state will spend on new construction, major preservation, and resurfacing projects across the state over the next 10 years.

The counties and cities can use the MVH funds as prescribed by IC 8-14-1-3, which includes construction, reconstruction, and maintenance of highways, roads and bridges and the purchase or lease of highway equipment, among other things.

In June, the state received $3.8 billion for a 75-year lease to the Indiana Toll Road Concession Company to manage and operate the road. Since July 5, when the State Treasurer invested the money, the state has earned more than $52.5 million in interest at an average rate of 5.46 percent.

A link to a county-by-county list representing one year of funding may be found at: