Indiana governor wants to start spending on projects again after COVID-related pause

(The Center Square) – The state of Indiana is ready to start spending money again.

After dialing back spending in May due to the COVID-19 pandemic, Gov. Eric Holcomb said he wants to move ahead with what he called key investment projects that were put on hold.

In May, Holcomb announced a 15% cut to state budgets to combat financial uncertainty as the pandemic began to grip Indiana and the rest of the country. Those cuts went into effect July 1.

“In May, we reduced spending because of the sudden, sharp drop in state revenues and to prepare for a continued decline in state revenue due to the economic impact of COVID-19,” Holcomb said. “Thankfully, current revenues are stronger than expected, and that means we can responsibly move forward with these one-time expenditures that were already approved and on the books.”

The two projects total $175 million. About $65 million will be used to cover grants to Holcomb’s Next Level Trails program. The rest will head to deferred maintenance projects. Both sets of expenditures were approved in the 2019-20 budget before being put on hold.

The trail program includes an overall $90 million investment, which the Department of Natural Resources calls the largest infusion of state trail funding in Indiana history. The goal is to develop regionally and locally significant trails throughout the state and incentivize efforts to accelerate trail connections.

Grants are available to local governments and non-profits, with a 20% local match, through an application process

Looking ahead, the state’s General Fund Revenue Forecast predicts nearly identical numbers to current budget revenues, showing a modest $300 million increase over the next two years. That would mean three years of revenue growth, despite challenges during the pandemic.

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