INDIANAPOLIS, IND. (WOWO) — Indiana road and bridge construction groups are pressing state leaders for a long-term transportation funding plan as the state’s suspension of gasoline taxes enters its fifth month and could continue into December.

The coalition says the temporary tax break has helped drivers dealing with high fuel prices, but warns that continuing to suspend the revenue source could make it increasingly difficult for Indiana to maintain and expand its transportation network.

The groups praised Gov. Mike Braun for providing relief at the pump while using state money to backfill transportation accounts, but said the state ultimately needs to restore its traditional fuel-tax revenue and develop additional sources of transportation funding.

“We don’t want this temporary disruption to become the norm as Indiana funding sources diminish,” Indiana Constructors President Richard Hedgecock said at a Tuesday news conference.

“Our current funding projections will allow us to perform only the most basic maintenance without adding to the network that has brought our state so much economic success,” Hedgecock said. “We have to continue to invest if we want to keep moving forward.”

The latest suspension began after Braun declared an energy emergency in April amid rising gasoline prices. The Indiana Department of Revenue said the governor’s initial order suspended the state’s gasoline use tax, followed by a suspension of the gasoline excise tax in May.

The suspension was subsequently extended, and Braun declared another energy emergency last week. That latest action cites fuel-market disruptions associated with Russia’s war in Ukraine and Canadian wildfires, rather than the factors cited in the original emergency declaration.

Under the latest extension, the tax break will continue for at least another 30 days and could remain in place into early December according to the Indiana Capital Chronicle.

The lost revenue is significant.

State and local governments are projected to lose about $533 million in transportation funding during the period covered by the gas-tax suspension. The state has begun making payments from its General Fund to help replace money local governments otherwise would have received for road and bridge projects.

Brian Gould, executive director of the Build Indiana Council, said gas taxes remain attractive as a transportation funding mechanism because they are relatively simple to collect and can move money into infrastructure projects quickly.

“We must acknowledge the importance of reinstating this funding mechanism to protect the vitality of Indiana’s transportation grid,” Gould said.

Gould said gas-tax revenue generally reaches transportation projects much faster than some alternative financing mechanisms.

“Those are dollars that go back out for a project 45, 60 days later, usually,” Gould said. “We’re a cash-pay state.”

He also cautioned against replacing recurring fuel-tax revenue with borrowing.

“We would hate to … suspend gas taxes into the long term and look at things like debt,” Gould said. “That’s not a long-term, viable solution for our needs.”

At the same time, Gould said Indiana cannot continue relying primarily on gasoline taxes and vehicle registration fees as the state’s transportation needs grow and vehicle technology changes.

The state’s current transportation funding structure was significantly revised in 2017, when lawmakers increased the gasoline excise tax by 10 cents per gallon and established an annual inflation adjustment capped at one cent.

That mechanism subsequently pushed Indiana’s gasoline excise tax to 37 cents per gallon on July 1, before the current suspension took effect.

A temporary extension of the annual indexing provision was approved in 2023, but Gould said there is little political appetite for continuing to increase the fuel tax.

“When we passed that road funding package then, we understood we had about a decade that we could continue to rely on fuel taxes, registration fees,” Gould said. “And then, at that point, they’re just not sustainable for the future.”

Transportation advocates say the problem extends beyond the immediate loss of gas-tax revenue.

A 2024 analysis estimated Indiana would need roughly another $1 billion a year simply to maintain local roads and bridges at their existing condition. About $1.8 billion annually would be needed to make improvements, according to the analysis cited by the Indiana Capital Chronicle.

State transportation officials have also warned in recent years about a looming funding shortfall for Indiana’s transportation system.

That has prompted construction and engineering groups to push for a broader discussion about how Indiana pays for its roads — including alternatives to traditional fuel taxes.

One option receiving support from the Build Indiana Council is tolling.

The Braun administration is seeking federal approval to place tolls on Interstate 70 as part of a plan to widen the highway to six lanes across Indiana.

Under the state’s application, a passenger vehicle traveling the entire 156-mile Indiana stretch of I-70 would pay $15.60, while a semitrailer would pay $84.24.

Gould said Indiana cannot afford to wait decades for major highway improvements.

“Six years ago, we were told by the Indiana Department of Transportation to get six lanes on I-65 and I-70 was about a 40-year process,” Gould said. “Six years later, now the number is 70 years.”

“That’s a whole ‘nother generation,” he said. “That’s another lifetime. Hoosiers are not going to be that patient.”

The construction coalition is not arguing that tolling should replace every existing transportation revenue source. Instead, members say Indiana needs a diversified system that can continue generating money as driving patterns and vehicle technology change.

That concern is particularly relevant as more drivers shift toward vehicles that use less gasoline or no gasoline at all, potentially reducing the effectiveness of a funding system tied heavily to fuel consumption.

For now, though, the immediate issue is the continued suspension of Indiana’s gas taxes.

The governor’s emergency declarations have provided short-term relief for motorists, while the state works to backfill transportation accounts with other money.

Road builders say that approach can work temporarily, but they don’t want it to become Indiana’s permanent transportation policy.

The central question facing state leaders is how to replace or supplement fuel-tax revenue before the state’s transportation system reaches a point where Indiana is merely maintaining existing roads and bridges instead of building the infrastructure needed for future growth.

And with the latest gas-tax suspension potentially lasting into December, transportation groups say that debate cannot wait until the revenue crisis becomes more severe.