INDIANAPOLIS - It became clear Friday that Indiana lawmakers don't want to offer state funding to bail the Indianapolis Capital Improvement Board out of its $47 million deficit.
Nor do legislators want to shoulder public blame for tax increases that would result from the bailout.
Gov. Mitch Daniels joined a growing coalition of Democratic and Republican lawmakers Friday when he announced he opposes infusing state money into the stadium board.
Instead, Daniels said lawmakers should allow the City-County Council in Indianapolis to decide whether to raise local taxes on items such as admissions, hotels and food and beverages.
"Give Marion County a very large toolbox - more than is necessary - and then let the people here decide which tools to use to address this problem," he said.
State leaders say if Indianapolis wants to help the struggling board that runs its professional sports stadiums, the city will have to do so itself.
A joint House-Senate conference committee heard public testimony Friday on a plan to bail the board out by allowing the city to increase some local taxes and also keep some tax money that currently goes to the state's general fund.
The plan does that by expanding the downtown stadium district, which keeps sales and income tax revenue for the board.
The total amounts lawmakers have discussed pulling from state coffers, between $6 million and $9 million, can seem small considering that in March the state collected $389 million in sales tax revenue.
Indianapolis Mayor Greg Ballard, a Republican, insists a few million dollars is a drop in the bucket compared to the revenue the state would lose if the stadium board were allowed to falter. Senate Appropriations Chairman Luke Kenley, R-Noblesville, pitches expanding the stadium district as the state protects the return on its investments.
Yet a recent state tax collection forecast predicted Indiana would tumble $830 million below already-downgraded expectations through July 2011, creating a budget crunch that has forced far-reaching spending cuts.
Many lawmakers object to further depleting the state's general fund to give special treatment to Indianapolis when they can't seem to get funding for projects they deem more important to their districts.
For example, victims of tighter state spending this year could include public broadcasting at $3.5 million a year, a Young Abe Lincoln stage production at a Spencer County state park at $550,000 and an ombudsman to oversee the state's Department of Child Services for about $150,000.
Rep. Russ Stilwell, D-Boonville, said assisting Indianapolis' stadium board out of its deficit sets a precedent.
"Maybe there are other areas of the state that could have some assistance, too," he said.
Even those who staunchly support expanding the development district and allowing the stadium board to keep that tax revenue acknowledge that they'll struggle to explain why other communities can't receive the same help as Indianapolis.
"That is one of the dangers of this entire discussion and approach," said House Minority Leader Brian Bosma, R-Indianapolis.