Indiana Senate Tax Chairman Luke Kenley has derailed the South Shore expansion bill by sending it to a summer study committee — meaning that any legislation to build new lines to Valparaiso and Lowell has been killed this legislative session.

Reports the Northwest Indiana Times’ Patrick Guinane:

Legislation to steer $350 million in state money toward South Shore expansion will take a major detour Tuesday.

Senate Tax Chairman Luke Kenley, R-Noblesville, said Monday he has decided to route the commuter rail funding bill to a summer study committee for further review. That means the effort to finance South Shore extensions to Lowell and Valparaiso is dead for the year — unless region lawmakers can broker an unlikely backroom deal in the final weeks of the legislative session.

“I’m going to recommend that we put that bill back to the Tax (and Financing Policy) Commission for this summer, the reason being that I’m not comfortable with the funding mechanisms that they’ve put in there,” Kenley said.

The legislation, House Bill 1220, would steer 12.5 percent of the state sales tax collected in Lake and Porter counties toward the proposed Lowell and Valparaiso lines, a move that would generate more than $30 million annually without raising local taxes.

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The Post-Tribune answers a lot of previously unanswered questions about the South Shore extension.

One key issue is the fact that all of the money that is being talked about right now is just for building the new lines and various train stations needed for the project and other expenses related to getting the project built. Nothing is being allocated to assist with operating costs — about half of the expenses are already subsidized by taxpayers, but that ratio might change with the additional costs of operating the expanded system.

Another issue raised is the possibility that current stops in Gary may lose riders, causing them to become flag stops. While the articles suggest that there isn’t much commerce related to commuters in those areas, I’m sure the pain will be felt at some of the fast food places and other businesses located near the South Shore Line.

And, will the predicted 26,000 plus jobs gained with a South Shore Extension become reality?

Buzzcut at Blue County in a Red State has some fine commentary about the plans to run new South Shore lines to Valparaiso, Munster, and Lowell.

With the publishing of all this information, it is clear that, once again, Visclosky has mismanaged this project. He did not get Metra on board. He did not reign in Mayor McCheeze and that insane clown in Gary, and made the region look like fools in Indy. And he did nothing to publicize the need for an operating subsidy.

One unanswered question that still remains: Why not use existing rail lines for the South Shore expansion?

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