In response to questions about how the Northwest Indiana Regional Development Authority intends to put up $150 million toward the proposed South Shore extension, the RDA issued a statement today pledging to work with others to develop a consensus on funding.

The RDA currently gets $27.5 million a year to go toward a variety of development projects, including the Gary/Chicago Airport, regional buses, the shoreline redevelopment project known as the Marquette Plan, and the existing and proposed South Shore commuter service.

Of the $1 billion pricetag for the South Shore extension, half is expected to come from federal funds.

The RDA is expected to contribute $150 million, while another source will make up the remaining $350 million; a bill authored by Rep. Chet Dobis, D-Merriville, calls for capturing existing sales tax revenue in Lake and Porter counties to make up that $350 million match.

Questions have surfaced, such as those at Thursday’s Northwestern Indiana Regional Planning Commission meeting, about how the RDA will provide the $150 million.

Today, RDA Chair Leigh Morris issued the following statement:

“Although the RDA Board has not yet met to address the specific language contained in Represen-tative Dobis’ proposal for funding the extension of the South Shore commuter service into southern Porter and Lake Counties, we salute Representative Dobis for his initiative, and we will work with him, Governor Daniels, Congressman Visclosky and others to develop consensus on how this important initiative should be funded.”

Of the $27 million in funding that RDA gets annually, the breakdown is as follows: $3.5 million each from Hammond, Gary, East Chicago and Lake County government, all from casino revenues; $3.5 million from Porter County government from its county option income tax; and $10 million from the state.

Originally, the state subsidy for the RDA was to come from Indiana Toll Road fares, but after the Toll Road was leased, the state funding for the RDA has come from the upfront payment from the $3.8 billion lease proceeds, with a commitment by the state to provide those funds for 10 years.

Posted 1/18/2008