Indiana officials directed more than $130 million Tuesday to state and local road programs, replacing revenue lost in June amid Gov. Mike Braun’s continued suspension of the state’s gasoline taxes.

The State Board of Finance approved three transfers totaling $130.45 million from the State Highway Fund’s existing balance — not directly from Indiana’s broader budget surplus.

Each replaces June revenue that would normally flow to a different road account through Indiana’s gasoline use tax or 36-cent-per-gallon gasoline excise tax.

“I made a commitment that we would provide gas tax relief to Hoosiers without leaving our local communities to foot the bill,” Braun said. “I’m grateful to the Board of Finance for their partnership in once again helping us keep that promise. Right now, local leaders across Indiana are focused on cleaning up from historic storms, repairing damaged infrastructure and helping their neighbors recover, and they can continue to direct their efforts there.”

The largest transfer sent $89.39 million to the Motor Vehicle Highway Account, including $9.65 million in gasoline use-tax revenue and $79.75 million in gasoline excise-tax revenue.

Braun announces new energy emergency, continues Indiana’s gas tax suspension

The board separately directed $26.58 million in excise-tax revenue to the Highway, Road and Street Fund and $14.47 million in use-tax revenue to the Local Road and Bridge Matching Fund, which supports matching grants to local governments.

After the money moves through the normal distribution process, State Budget Director Chad Ranney told the Indiana Capital Chronicle, $72.17 million will return to the State Highway Fund for use by the Indiana Department of Transportation.

The remaining roughly $58.3 million is designated for local road funding.

That local share includes the $14.47 million matching-fund transfer and approximately $43.8 million that the state comptroller’s office will distribute directly to local governments within days, Ranney said.

Braun first suspended the state’s 7% gasoline use tax in April as fuel prices surged during the war with Iran. He added the gasoline excise tax to the suspension in May and has continued the tax holiday through subsequent energy emergency declarations.

His administration pledged to protect local road budgets from the resulting revenue losses.

The transfers keep scheduled road distributions intact but do not provide new money or address Indiana’s longer-term infrastructure funding needs.

State officials previously projected the months-long tax holiday would reduce revenue for INDOT and local governments by a combined $533 million. That was before Braun initiated a second emergency starting in August.

Another Board of Finance transfer could be considered in September as delayed gas-tax distributions continue.

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