MERRILLVILLE (AP) — Critics are skeptical of a new plan that supporters say would expand the South Shore commuter railroad in northwest Indiana without raising taxes.

State Rep. Chet Dobis, D-Merrillville, has proposed paying for the extension in part by diverting about 12 percent of the sales tax money Lake and Porter counties send the state. The move would generate $30 million a year to pay $350 million toward the project without raising local taxes, he says.

The Regional Development Authority could pay an additional $150 million, which together would match federal money for a total of $1 billion for the project to extend South Shore service to Lowell and Valparaiso. Plan supporters said the project would bring thousands of jobs to the area while improving the environment by taking cars off the road.

But critics say the plan won't work.

Porter County Commissioner Bob Harper said the plan could eventually lead to tax increases somewhere, and said he doesn't know if RDA has the money to contribute $150 million.

"On their budget, it can't happen," he said.

Ron Brown of Valparaiso said the plan would simply take tax money away from other parts of the state.

"That's going to create a shortfall in the state, and they're going to have to make up for that," he said. "They're playing shell games with this, so which pocket are they going to take it out of?"

Jeffrey Brooks of Portage said he thinks the state will have to subsidize the commuter railroad in the future.

"I don't think everybody understands that this is going to cost a lot of money," Brooks said. "They're not thinking into the future."

The proposal by Dobis could face opposition in the Republican-controlled Senate. Sen. Luke Kenley, R-Noblesville, has said that if the Legislature approves using local sales taxes for one project, people all over the state would request similar deals and soon the state would have no sales tax revenue left.

Dobis' earlier proposals to enact a local gas tax or a wheel tax to pay for the extension floundered, but several members of northwest Indiana's delegation have said they were encouraged by his latest idea because it uses existing tax funds.

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Information from: Post-Tribune, http://www.post-trib.com