Lesley Weidenbener, managing editor, TheStatehouseFile.com

INDIANAPOLIS – Tucked among the hundreds of bills that flowed through the

General Assembly this year is one that could affect Indiana’s future trade, economy and finances.

House Bill 1104 orders a study of transportation funding in hopes that the state will find a way to generate revenue for roads and highways that is fair but lucrative.

That’s not an easy combination to master but it’s incredibly important.

Currently, the state gets most of its money for road projects from an 18-cent per gallon tax on gasoline and from the federal government, which gets most of its transportation dollars from an 18.4-cent tax. The flat state rate hasn’t changed since 2003, despite inflation.

And over the years, revenues from those gas taxes have been falling. That’s because Americans are buying more fuel-efficient vehicles – and some cars that don’t use gas at all. So even as people drive more, they’re using less gas.

But the cost of building highways and the demand for their use – for trade, for tourism, for commuting – has never been higher.

That’s a problem not only in Indiana – but in states across the nation and for Congress.

The knee-jerk answer is to increase the gas tax, which isn’t even that politically difficult. Prices at the pump vary dramatically from week to week and even day to day and so a change in the gas tax isn’t obvious. In addition, there’s nothing on the pump that indicates how much of the total cost is attributable to taxes.

But policy makers say raising the gas tax is no answer. It may generate more cash initially but it keeps states and the federal government dependent on a source of revenue that will probably become even more unstable.

Consider this: The state’s various motor fuel taxes (which include taxes on diesel and marine fuel as well) generated roughly $800 million in 2013, less than they were producing a decade ago.

Far more than half of that revenue comes from the tax on gasoline alone. In Fiscal Year 2011, that tax generated some $543 million. By FY 2013, the total had dropped to $529 million.

Meanwhile, federal regulations are requiring more fuel efficient vehicles, which all but guarantees the downward trend will continue.

But the fixes aren’t popular. Several states are considering or testing proposals to track the number of miles a car travels and tax the owner accordingly. But that could require vehicle devices that some drivers say will violate their privacy.

Other options – as outlined in a story by reporter Jacob Rund at TheStatehouseFile.com – include a simple per-car fee. But that might not be popular among Hoosiers who don’t drive much and worry they’d be subsidizing those who use the roads more often.

That’s why replacing – or maybe just supplementing – the gas tax is so tough.

For years, it served as a true user fee. The people who drove a lot paid higher taxes to fund more road projects. The fees paid by truck drivers or corporations have been built into the prices of products so that customers help pay the cost of getting items from one part of the country or the world to their homes. And Hoosiers pay the tax a little at a time, which means there’s no big bill.

It’s not clear what substitute tax could achieve that same balance without causing major privacy concerns.

And that’s why this study is so important. The bill, which Gov. Mike Pence has not yet signed into law, requires the Indiana Department of Transportation to hire a firm to conduct the review and make recommendations within two years.

Then it will be up to lawmakers to act boldly and fairly, with the knowledge that Indiana’s future as the Crossroads of America is likely at stake.

Lesley Weidenbener is the executive editor of TheStatehouseFile.com, a news website powered by Franklin College journalism students.