At the crossroads: Indiana's infrastructure.

• Author: Richards, Rick

Indiana's motto is "Crossroads of America." The state boasts more interstate highways than any other state in the union, but economic developers say they are a man-made resource that is being neglected.

Soon, the state's motto might read, "Caution: Rough road ahead."

indiana's infrastructure-its roads, bridges, wastewater treatment plants and airports-has been a valuable tool in attracting new business to the state. So far, the state has not lost any prospects because of its deteriorating infrastructure, but planners say it could happen if more emphasis is not given to improving roads and bridges.

Graham S. Toft, president of the indiana Economic Development Council, Inc., in Indianapolis, has examined the state's infrastructure needs extensively. In the August issue of Hoosier Banker magazine, Toft said 54 percent of the state's highways, 44 percent of its bridges and 20 percent of its sewers are in either poor or fair condition, or face capacity constraints because of federal guidelines.

"Strategically, Indiana is in a competitive geographic position in the United States," said Toft. "Our interstates give us a competitive edge, but regrettably, they are not being managed properly."

Part of that reason, he said, is that state government is not picking up the slack for cuts in federal highway and infrastructure spending. In 1981, the federal government paid 43 cents of every public works dollar. in 1989, that had been slashed to 27 cents.

But a solution, or at least a partial solution, may be at hand. The Build Indiana Fund, said Toft, is an example of a non-tax revenue source that could be tapped for the state's infrastructure needs.

Build Indiana was created by the Indiana General Assembly in 1989 to set aside a portion of Hoosier Lottery funds to support infrastructure projects around the state. The amount of money available is estimated to be between $88 million and 125 million a year. Unfortunately, the requests from cities and towns during the first year came in at more than $1.1 billion, 10 times the amount that will be available.

Even so, the Build indiana Council, a not-for-profit organization composed of engineers, contractors, equipment dealers and others involved in the construction industry, says spending lottery money on the infrastructure is a positive step. According to James A. Purucker, executive director of the organization, from 1964 to 1986, of all the states in the Midwest, spending on infrastructure as a percent of...