Governor Pence Announces Distribution of $505 Million to Local Governments

Indianapolis – Governor Mike Pence today announced that local governments will receive $435 million in Local Option Income Tax (LOIT) distributions that can be used for transportation infrastructure maintenance for counties, cities, and towns as part of Senate Enrolled Act 67, which was signed into law on March 23, 2016. Additionally, other local units of government will receive $70 million for deposit in their rainy day funds.

“Here in the Crossroads of America, roads mean jobs. In this past session of the Indiana General Assembly, we committed to bringing significant new funding for local governments with regard to transportation infrastructure, and I thank our legislators for their leadership on this issue,” said Governor Pence. “I was pleased to sign into law SEA 67 and today, these funds will now be available in communities throughout Indiana.”

The state is distributing the $505 million to counties today. According to SEA 67, the state must make this special one-time distribution to local governments before May 1. County auditors must distribute these funds to their local government units before June 1.

In his State of the State Address, Governor Pence outlined a plan to provide more than $1 billion in new funding to preserve and maintain state and local infrastructure. In addition to SEA 67, Governor Pence also signed into law HEA 1001, which provides for additional state infrastructure maintenance funds, while also fully funding the Regional Cities Initiative.


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