Transit Tax Referendum May Be Blocked in Indiana

The referendum would ask voters if they wanted to raise taxes to help pay for the plan, which would add buses and rail lines throughout the central part of the state. But lawmakers say now's not the time to ask.

"Sen. Luke Kenley, R-Noblesville, who is chairman of the powerful Senate Appropriations Committee, said the timing just isn't right.

He pointed to the economy, what he called a $1 billion state budget deficit, unemployment at about 10 percent, the still-unclear structure for operating and funding mass transit, and a perception that transit is a socialized service.

'The suggestion that someone needs to pay more taxes right now isn't selling very well,' Kenley said."