Gary officials seek $400 million slice of stimulus package

BY PATRICK GUINANE, Times of Northwest Indiana
pguinane@nwitimes.com

INDIANAPOLIS | Gary Mayor Rudy Clay went to Indianapolis Tuesday seeking a sizable slice of the $5 billion windfall Indiana would receive from the economic stimulus package being debated by Congress.

Clay noted that Gary is the only city petitioning the state's Distressed Unit Appeals Board for relief from new property tax caps, which threaten to sap more than $30 million this year from the city budget.

"So when the stimulus money comes, we want to be first in line," Clay told reporters. "The bill passed the (U.S.) Senate with approximately $5 billion coming to the State of Indiana. We're not asking for a lot of money out of that. We're only asking for $400 million, which would create about 18,000 jobs in Gary."

Clay said he had a meeting scheduled with Indiana House Speaker Pat Bauer, D-South Bend, and he planned to drop in on state Commerce Secretary Mitch Roob, an appointee of Republican Gov. Mitch Daniels.

A copy of Gary's presentation was not immediately available Tuesday. But Joel Rodriguez, the mayor's special assistant for economic development, said the city primarily is seeking funding for "shovel ready" infrastructure projects.

"That's basically what it's all about," Rodriguez said. "I think for many years, state legislation has turned its backs on Gary, so to speak."

Clay said he has yet to receive word about the scheduling of a second hearing to determine Gary's distressed unit appeal. The state panel requested additional financial information from the city on Jan. 29, and Clay said the city plans to respond this week.