Kenley likely to drop alcohol hike from CIB plan-WEB ONLY

A top state senator said yesterday he would likely drop his proposal to double Indiana’s alcohol tax statewide to help fund the agency that runs the major Indianapolis sports stadiums and the Indiana Convention Center.

Senate Appropriations Chairman Luke Kenley (R-Noblesville) told The Associated Press that he was probably going to amend his proposal next week to remove the statewide tax hike and instead give Marion County an array of taxing options to fund the Indianapolis Capital Improvement Board. That could include a local alcohol tax, he said.

Kenley said he suggested the statewide alcohol tax increase last week thinking it might help the plan win votes. Kenley’s proposal would have funneled money to cities and towns around the state.

Indianapolis would have put its $8 million share toward its cash-strapped Capital Improvement Board, which runs Lucas Oil Stadium and Conseco Fieldhouse, along with the convention center.

Kenley wasn’t the only lawmaker speaking out about the CIB yesterday. Rep. Bill Crawford of Indianapolis, told the Indianapolis Star that he would introduce a plan that would propose a downtown casino with 1,500 slot machines to raise about $20.5 million annually for the CIB.

But the alcohol tax drew sharp criticism and little support.

“I thought it might be something that might help the bill,” Kenley said. “If it’s going to be a problem instead of a benefit, let’s don’t try that.”

Kenley hasn’t filed his amendment yet, but said it would likely include a “menu” of taxing options for Marion County, with money from increases going to the CIB.

Kenley’s original proposal would have allowed Indianapolis to raise its ticket tax on events at the stadiums, increase its hotel tax and raise food and beverage taxes.

Indianapolis Mayor Greg Ballard has said he considered raising food and beverage taxes distasteful, but hasn’t spoken out one way or another about other aspects of the plan since it is still in flux, Ballard spokesman Robert Vane said.

“He hasn’t ruled anything out other than income taxes or property taxes,” Vane said. “The situation’s simply too critical. We have to be open minded.”

The bill could be amended as early as Monday, the next time the GOP-led Senate meets.

The Capital Improvement Board faces a projected $47 million shortfall next year.
Kenley’s proposal would also include CIB funding from other sources, including $5 million a year each from the Indianapolis Colts and Indiana Pacers. Neither team has agreed to pay that yet, although officials from both franchises said Kenley’s proposal was a starting point in discussions.

Outnumbered Senate Democrats also hope to offer amendments to the bill next week.

Senate Minority Leader Vi Simpson (D-Bloomington) wants to remove the alcohol tax increase and allow Marion County to use existing tax revenue to help the CIB. Sen. Lindel Hume (D-Princeton) plans to offer an amendment that would increase ticket taxes on stadium events and allow the city to direct tax revenue from the downtown Circle Centre mall to the stadium agency.

Republican Sen. Patricia Miller of Indianapolis has also filed an amendment that would require the CIB to provide more public disclosure of its financial records. Under her amendment, the board would be audited annually by the State Board of Accounts. Kenley said he supported Miller’s proposal.