Clashes over spending, tax caps in Indy

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BY PATRICK GUINANE
pguinane@nwitimes.com
317.637.9078 | Thursday, January 08, 2009 | (12 comment(s))

INDIANAPOLIS | The Indiana General Assembly kicked off the four-month legislative session Wednesday with partisan posturing over state spending and the fate of property tax caps approved a year ago.

Before either chamber even had gaveled in, Republicans accused Democratic House Speaker Pat Bauer of holding hostage a measure that would set up a 2010 referendum allowing voters to decide whether to cement the tax caps into the Indiana Constitution.

"We're calling for the speaker to free the permanent property tax caps," House Minority Leader Brian Bosma, R-Indianapolis, told reporters Wednesday morning. "The General Assembly made a promise to every Hoosier homeowner, every renter and every business person to cut taxes now and cap them forever. We did part one, and the speaker and the Democrat caucus in the House are now reneging on part two."

Democrats prefer to wait until at least next year to gauge whether local government across the state can withstand more than $500 million in spending cuts triggered by the caps, which promise to eventually limit tax bills to 1 percent of assessed value for homeowners, 2 percent for landlords and 3 percent for businesses. Either way, the proposed constitutional amendment would not go on the ballot before 2010.

Bauer made his own waves by insisting that lawmakers tap some of the state's $1.3 billion in rainy day funds to make budget decisions less painful and put Hoosiers to work building roads, bridges and other state-financed projects.

"We can't just bury ourselves and say, 'We're helpless. Please, Mr. Obama, bail us out,'" Bauer, D-South Bend, told the chamber. "It's not only raining today in Indiana, it's a downpour. We don't need to keep that money in the bank. We could use it."

Republican Gov. Mitch Daniels has repeatedly declared the state reserves off limits, saying the money could be needed later if the recession outlasts the next two-year state budget. And Senate President David Long, R-Fort Wayne, immediately threw cold water on the proposed rainy day fund raid.

"We need to be extremely cautious in going down the road of spending any of these rainy day funds because you may think it's raining now, but we may (later) be in a tsunami," Long said.

Top staffers will present Gov. Mitch Daniels' proposed $28.3 billion, two-year state budget to a joint House-Senate panel at 9:30 a.m. today. Read The Times and check nwi.com for updates on the spending plan.

To view a live webcast of the budget hearing go to www.in.gov/legislative/session/video.html and click on the link labeled Watch Video from the Senate Appropriation Committee -- Room 431.

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munster wrote on Jan 8, 2009 8:20 PM:

" why don't the republicans make a bigger issue of this? it would certainly get them votes next election. I'm a life long democrat. but if you can cap my property taxes at 1% I promise you I would vote for indiana republicans for life. "

TO as expected wrote on Jan 8, 2009 7:58 PM:

" There are 48 republicans in favor of the 1% tax cap. Talk to the 52 democrats that are holding this up!!!! "

Say no to new taxes wrote on Jan 8, 2009 5:27 PM:

" If Government was serious about cutting costs they would eliminate defined benefit pensions like the private sector has done.

The elections are now over and its a feeding frenzy on the poor taxpayer.

How many times has the words "new tax" appeared in the Times since the November elections?

SAY NO TO NEW TAXES! "

as expected wrote on Jan 8, 2009 2:07 PM:

" just prior to may primaries the legislature passed the "1st round" of tax cap law. Now that the November elections are over, suddenly the legislature doesnt know how we can afford the caps. This will never make it into the constitution because we will not be offered the referendum. If we dont vote on this referendum in Nov 2010, we do not vote for any incumbants! "

Same Boat As Everyone Else wrote on Jan 8, 2009 1:43 PM:

" Caps are needed to reign in government spending. Plus, how many more houses can possibly go up for auction? "

protestor wrote on Jan 8, 2009 1:10 PM:

" No, it is not enough said-You all need to write, and contact your legislators to demand the cap-otherwise it will conveniently go away. "

Wet Hen again wrote on Jan 8, 2009 1:05 PM:

" I,m retired on a fixed income.
My house taxes have gone up by a factor of four, my heating bill has doubled, and my medications have also skyrocketed.
I had a real job all my life mostly under union contracts that either had a yearly raise or a COL escalator, and some times both.
But when things I got laid off. And that is what these governments need to do. Lay off the non essentials and hangers on.
Clay and other officials have no need of gov owned vehicles and certainly not take home cars or trucks. "

Hey Wet Hen wrote on Jan 8, 2009 10:46 AM:

" I knew you had to be a state employee, only state employees have all the time to be online posting. Yeah you want your rasie never mind us tax payers deserve some relief. Get a real job then you'll see we all need to tighten our belts. I hope the Gov doesn't give in and give these thieving democrats any money. Just look ay rudy Clay in Gary a day after he goes crying to Indy that gary needs more tax money he goes out and buys himself a new Hummer, nice way to spend money that isn't yuors. Wet Hen you must be related to rudy Clay. "

Wet Hen wrote on Jan 8, 2009 9:22 AM:

" Hey gov, those hard times are here now so use some of that rainy day fund and cut your state employees that are little more than yes men and seat warmers.
I helped put away that money and I want it spent now when it is needed. "

Robert Berski wrote on Jan 8, 2009 8:18 AM:

" Prior gentlemen writers:
I couldn't agree more. If they don't cement it, let us the taxpayers rise up and "cement them." Can anyone say "cement overcoat"? How about "cement shoes" for the 'fat cats'? "

taxpayer wrote on Jan 8, 2009 7:52 AM:

" They need to keep their greedy hands out of the cookie jar and live within their means. We the poeples have had enough of being taxed to death by the fat cats...WE WANT IT CEMENTED PERIOD! "

Keep it in the Bank wrote on Jan 8, 2009 4:29 AM:

" My property taxes have been cut by a $1000 thanks to Gov. Daniels' tax cap. This is in spite of Lake Co. and Calumet Township politicians. Enough said! "

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