LEGISLATIVE SERVICES AGENCY
OFFICE OF FISCAL AND MANAGEMENT ANALYSIS
FISCAL IMPACT STATEMENT
LS 6974 NOTE PREPARED: Dec 29, 2024
BILL NUMBER: SB 476 BILL AMENDED:
SUBJECT: Microtransit Pilot Program.
FIRST AUTHOR: Sen. Jackson L BILL STATUS: As Introduced
FIRST SPONSOR:
FUNDS AFFECTED:XGENERAL IMPACT: State & Local
XDEDICATED
FEDERAL
Summary of Legislation: This bill establishes the Microtransit Pilot Program for the purpose of providing
microtransit services to residents of eligible counties.
Effective Date: July 1, 2025.
Explanation of State Expenditures: Summary - This bill will increase General Fund expenditures during
FY 2026 to appropriate $4.5 M to the Indiana Department of Transportation (INDOT) to administer the
Microtransit Pilot Program through FY 2028. The increase in workload to administer the pilot program and
produce the annually required report in the bill are expected to be accomplished within the General Fund
appropriation.
Additional Information - It is assumed each county eligible for pilot program participation can receive a
single state grant of at most $250,000 per year. The bill’s $4.5 M appropriation, number of counties that are
eligible to participate in the pilot program, as well as the duration of the pilot program would yield a
maximum number of 15 state grants to counties in the three years the program is to operate.
If the maximum state grant is administered to each participant, INDOT would still have at least $750,000 of
the appropriation remaining for pilot program administration. This amount could be greater to the extent
counties do not receive the maximum state award in any year. Additionally, the bill is silent as to if
unexpended funds revert to the General Fund when the pilot program expires at the end of FY 2028.
Explanation of State Revenues:
Explanation of Local Expenditures: To the extent a county participates in the pilot program, the bill would
increase county expenditures. The following counties are eligible to participate based on population
requirements; Allen, Hamilton, Lake, Marion, and St. Joseph.
Counties are eligible for a maximum state award of $250,000 per year of program participation. The
maximum local expenditure to draw down a state award would be $50,000 per year, or $150,000 for the
SB 476 1 duration of the program. Participating counties would have an annual reporting requirement and this
requirement is expected to be accomplished within the resources provided through state awards.
Explanation of Local Revenues: Counties that participate in the pilot program are eligible to receive a
maximum annual grant of $250,000 to administer microtransit services. It is assumed that each county is
eligible for only a single state award per year with a maximum pilot program duration of three years. Each
county that participates in the pilot program would be eligible for a maximum state grant of $750,000 over
the three year period the pilot program is in effect. Increases in local revenue would depend on the decision
of county officials to apply for pilot program participation.
State Agencies Affected: INDOT.
Local Agencies Affected: Allen, Hamilton, Lake, Marion, and St. Joseph counties.
Information Sources: US Census Bureau.
Fiscal Analyst: Bill Brumbach, 317-232-9559.
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