Government reform effort long overdue
Critics were lined up to oppose Gov. Mitch Daniels’ plan to streamline
local government almost before he left the podium Dec. 19. Big surprise.
Critics were lined up to oppose Gov. Mitch Daniels’ plan to streamline
local government almost before he left the podium Dec. 19. Big surprise.
Soaring property taxes were arguably Indiana’s biggest problem in 2007. In 2008, the Legislature approved property tax caps
as a solution. But because the caps haven’t been implemented, debate is still raging over the consequences the caps will have
for local governments and whether they should be made permanent.
Now expecting $935 million less in annual revenue than they did a year ago, legislators will spend the next four months arguing
over budget cuts.
Several major issues with business implications are expected to receive ample attention when legislators convene next month,
particularly the continuing saga of property-tax relief and the state’s ability to pay jobless benefits.
A state-funded study of Indiana’s charter schools has found that “no practical difference” exists between the alternative
schools and traditional public schools.
Indiana legislators are signaling that everyone who receives funding from state government must tighten their belts as tax
collections fall short of projections. That could cause pressure for cuts to key technology incentives.
The Metropolitan Development Commission gave Indianapolis area transportation planners the green light Nov. 12 to do an expedited
study that would show locations, cost and potential ridership for mass transit routes region-wide.
The Metropolitan Development Commission has given city planners the green light to seek an expedited study that would provide
a clearer picture of what a comprehensive regional transit system could look like and how much it would cost.
In the wake of the 2008 election, State Sen. Luke Kenley, R-Noblesville, has been promoted. to chairman of the powerful Senate
Appropriations Committee, which oversees the state budget.
Indiana’s blue vote for president-elect Barack Obama on Election Day was a sign that Hoosiers are ready for change. So was
the state’s red vote to keep incumbent Gov. Mitch Daniels in office. In this case, the status quo means more change. Daniels
has been making gutsy and sometimes unpopular moves since taking office four years ago. He ran on a promise to keep shaking
things up.
Most of Indiana’s 100 House districts are strongly Democratic or strongly Republican. That means control of the House of
Representatives will come down to a handful of battleground districts–probably fewer than a dozen, political experts say.
Many Indiana school districts say they have no choice but to brace for cutbacks in areas like school repairs, computers and
transportation thanks to the property tax reform measure approved by the General Assembly and signed by Gov.Mitch Daniels.
Property tax reform is now Indiana law. Hoosier homeowners are thrilled. But many corporate leaders grumble the historic deal was brokered on the backs of business. Topping their concerns is the new 3-percent property tax cap for commercial and industrial properties, which they fear will slow business expansions and discourage companies from moving headquarters to the state.
Two bills in the Indiana Legislature would require utilities that operate here to supply up to 25 percent of their electricity from renewable resources such as wind, landfill gas, and plant and animal waste. Backers say utilities need more incentive to diversify from coal-based power generation.
Northwest Airlines flight 1829–stranded on a Detroit taxiway for seven hours with lavatories overflowing and the 198 souls
aboard without food or water–has now landed at the Indiana General Assembly. Two Republican lawmakers have proposed creating
an “airline consumer advocate” to resolve disputes on behalf of passengers who’ve endured poor service.
Here’s a political hot potato that so far has received little discussion in the rancorous debate over property-tax reform:
Should the enormous costs of helping impoverished Hoosiers continue to be funded county by county, or spread to taxpayers
statewide?
Many called it “the perfect storm.” But in retrospect, the dark clouds of Indiana’s 2007 property tax crisis had been forming
for years. Legislators caught wind early that something was amiss and spent all spring preparing to weather the impact.
As legislators prepare to overhaul the state’s property-tax system, Marion County’s future hangs in the balance. Indianapolis
residents–particularly in the city’s older, urban core–already pay far higher taxes than their suburban counterparts. And
arguably get less bang for their buck. Changes on the table could make Marion County an even tougher sell.
The art of the deal is to get more than you give up. If Gov. Mitch Daniels convinces the General Assembly to pass his property
tax plan intact, he’ll meet the definition of deal-maker, and then some.
During their first half-decade in operation, the state's casino slots machines grew their total sales to $22 billion,
according to Indiana Gaming Commission records. But in the last five years, slot sales grew just 18 percent, reaching $25.9
billion in 2006. That's what business textbooks call a maturing market.