Shrinking gas-tax revenues across the state will mean fewer gravel roads will be paved and northeast Indiana roads in general will receive less maintenance this summer.
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Rural county highway departments rely almost exclusively on the state’s gas-tax revenue and related state motor vehicle fees. Since 2005, that revenue has declined, with last year falling well below 2003 levels. That means less money to spread among cities, towns, counties and several statewide agencies, according to the state auditor’s office.
But shrinking property tax revenues will indirectly hurt county highway departments further this year and next as property tax caps take full effect. Counties that previously had local income tax dollars to spare for road and bridge work are now redirecting those dollars to supplement the general fund or focus on economic development projects that could put residents to work.
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Steuben and Kosciusko counties said they are only a few years away from having to return badly damaged chip-and-seal roads to gravel because of the continuing budget shortfalls and escalating costs. Adams County isn’t likely to take that drastic step, and LaGrange County hopes it won’t have to make the decision, highway officials said.
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“It’s not going to be pretty to go back to gravel anymore. Our society is not ready for that. Your cars aren’t ready for that,” he said.
http://www.journalgazette.net/article/20100131/LOCAL/301319908/1002/LOCAL