Without Private Funding, Transit Revenue Could Take a Hit in Indianapolis

IndyGo transit officials are required to match transit income tax revenue with funding from private sources, but haven't yet met that end of the bargain. A new state law would hold IndyGo accountable to those requirements.

2 minute read

March 3, 2020, 7:00 AM PST

By James Brasuell @CasualBrasuell


Indianapolis Bus Rapid Transit

Momoneymoproblemz / Wikimedia Commons

"The Indiana Senate voted Thursday [February 27] to put teeth in a 2014 state law that required IndyGo to raise private dollars to help finance its mass transit operations, including the Red Line—something it has not done to date," reports Lesley Weidenbener.

"IndyGo officials say the legislation—which still requires final votes in the House and Senate—could significantly jeopardize its operations and its ability to build the planned Blue and Purple rapid transit lines," according to Weidenbener.

A 2014 law that, according to Weidenbener, "authorized a 0.25-percentage-point increase in the city’s income tax rate to fund IndyGo operations and new services," is the source of the controversy. That law required IndyGo to provide a 10 percent match of tax revenue with funding from private sources. 

"The tax went into effect in October 2017 and is generating about $60 million per year. [State Senator Aaron] Freeman said that means IndyGo would need to raise about $6 million per year to meet the law’s threshold, but the agency has so far not raised any private money," according to Weidenbener. The 2014 law didn't include penalties if the city failed to meet that requirement, so the law proposed by Freeman last week would "require the state to withhold 10% of IndyGo’s local income tax revenue in years that it failed to meet the private funding threshold," according to Weidenbener. 

Planetizen documented some of the long process of the city's adoption of the transit income tax, from approval by voters, to implementation delays and eventual approval by the City Council, to initial ridership success and ambitious plans enabled by the new revenue stream.

Thursday, February 27, 2020 in Indianapolis Business Journal

portrait of professional woman

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching. Mary G., Urban Planner

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching.

Mary G., Urban Planner

Get top-rated, practical training

High-rise apartment buildings in Waikiki, Hawaii with steep green mountains in background.

Study: Maui’s Plan to Convert Vacation Rentals to Long-Term Housing Could Cause Nearly $1 Billion Economic Loss

The plan would reduce visitor accommodation by 25,% resulting in 1,900 jobs lost.

April 6, 2025 - Honolulu Civil Beat

People sitting and walking in plaza in front of historic Benton County Courthouse in Bentonville, Arkansas.

Placekeeping: Setting a New Precedent for City Planners

How a preservation-based approach to redevelopment and urban design can prevent displacement and honor legacy communities.

March 28, 2025 - Emily McCoy

Rusty abandoned oil well and equipment with prickly pear cactus next to it in West Texas.

Using Old Oil and Gas Wells for Green Energy Storage

Penn State researchers have found that repurposing abandoned oil and gas wells for geothermal-assisted compressed-air energy storage can boost efficiency, reduce environmental risks, and support clean energy and job transitions.

March 31, 2025 - Pennsylvania State University

Two people on bikes riding down paved Burke-Gilman bike trail in King County, Washington on a sunny day.

Washington State Plans Ambitious ‘Cycle Highway’ Network

The state is directing funding to close gaps in its existing bike network and make long-distance trips more accessible.

5 hours ago - Momentum Magazine

Small green ADU cottage in lush backyard in San Jose, California.

Homeowners Blame PG&E for Delays in ADU Permits

The utility says it has dramatically reduced its backlog, but applicants say they still face months-long delays for approvals for new electrical work.

6 hours ago - San Francisco Chronicle

Large oak tree in meadow with sun filtering from behind it in Angeles National Forest.

Rethinking Wildfire Defense: How a Landscape Approach Can Protect Neighborhoods

Post-fire analysis of the Eaton Fire reveals that a landscape approach — including fire-resistant vegetation, home hardening, and strategic planning — can help reduce wildfire risk, challenging assumptions that trees and plants are primary fire hazards.

7 hours ago - ASLA The Dirt