By Jon Seidel, Post-Tribune\
jseidel@post-trib.com
It's now or never.
That's how Gov. Mitch Daniels frames the debate over property tax caps that is likely to once again dominate the 116th Indiana General Assembly as it begins its second regular session Jan. 5.
Lawmakers seem eager to get a jump on their work this year. A bill that would write the tax caps into the state's constitution was among several key items to get rare December committee hearings.
The urgency is likely caused by the lawmakers' March 14 deadline for adjournment. That leaves just 10 weeks to debate not only taxes but ethics reform, faltering state revenues and new casino bills. The time limit leaves little room for bickering.
"If we're going to be serious about some of these things, we need to get on it, get it done," Rep. Don Lehe, R-Brookston, said.
The tax caps are this session's priority. Daniels wants them written into the constitution so they'll be harder to repeal.
Some local lawmakers, though, want to know more about how they will affect Hoosier communities before making such a move. Gary, for one, faces financial devastation under the caps.
"I am not afraid to say this is wrong for several reasons," Sen. Karen Tallian, D-Portage, said.
A law passed by the General Assembly in 2008 puts the tax caps into full effect for 2009 pay 2010 bills. They prevent property tax bills from exceeding 1 percent of assessed value for homesteads, 2 percent for landlords and 3 percent for commercial properties. Last year they were set at 1.5, 2.5 and 3.5 percent, respectively.
To become constitutional, though, the legislation must be passed by two separately elected legislatures and then approved by a public referendum. The bills have already been placed before both chambers, earning committee endorsements in December.
Rep. Vernon Smith, D-Gary, is among those who say the caps need to be more closely monitored. His hometown won an exemption from the caps in 2009, and its state-mandated fiscal monitor says it would only have enough money to pay the salaries of police, firefighters and EMS workers if the caps are fully enforced there.
That would leave no money for those workers' benefits, and no money for any other city services.
"It's not just Gary," Smith said. "Merrillville's in trouble. Other cities will get in trouble too, because of the economy."
Lehe said the focus of the tax-cap debate should be on relief to taxpayers, though, not the burden of struggling cities. The caps are expected to save property owners $465 million this year.
"I think taxpayers deserve some relief like that," Lehe said. "I think it's important to get it done."
Tallian said her concerns go beyond revenue shortfalls, though. The tax cap amendment would include exceptions for Lake and St. Joseph counties, leaving their government debt outside the caps until 2020. Tallian said it's inappropriate to place such exceptions in the state's constitution.
"It is a statement of our guiding principles, and should not be changed on the political whims of the moment," Tallian said.
The dirty word
The General Assembly also seems to be coming together on lobbying reform, urged on by an editorial campaign by several Hoosier newspapers, including the Post-Tribune.
A House bill already endorsed in committee would prohibit lawmakers from becoming lobbyists less than one year after leaving office, and it would require lawmakers to report gifts worth more than $50. The current reporting threshold is $100.
A Senate version of the bill would also expand reporting requirements to include university officials lobbying the legislature, and it would prohibit state officials from using state money for radio and television advertisements, with the exception of the governor's public service announcements related to public health or safety.
While lawmakers seem willing to accept these changes, some have been put off by the sudden characterization of Indianapolis' lobbyists as villains.
"I think a lot of people get the impression that 'lobbyist' is almost a swear word to some people," Lehe said.
But Lehe and others say lobbyists are vital to helping lawmakers understand the ins and outs of complicated issues that must be learned swiftly. There are also few examples of corruption for reformers to use to further their cause.
Finally, Tallian points out last year's long session lasted four months, and she and other members of the budget committee were in Indianapolis for all of June. Toss in the committee hearings in the summer and December, she said, and lawmakers are putting in quite a bit of overtime.
"When the band strikes up the political reform tune, I hope readers will also remember that the majority of the legislature are hard-working public servants who give a full-time job for part-time pay," Tallian said.
Gary going for jackpot
The emphasis on the property tax caps will mean extra urgency this year for Gary lawmakers who want to push for a new land-based casino there. A state report released last month found it's in Indiana's best interest to consolidate Gary's two casino licenses into one facility at the Borman Expressway and Interstate 65. The second license would be returned to the Indiana Gaming Commission.
Sen. Earline Rogers and state Rep. Charlie Brown, both D-Gary, have promised to renew their efforts from 2009 to successfully pass legislation to make it happen. While the casino probably won't be a cure-all for Gary, the city's leaders believe it could go a long way toward boosting economic development in Northwest Indiana's largest city.
The state itself is fighting consistent revenue shortfalls, and the casino industry brings much needed cash into the Statehouse. Lawmakers from other parts of the state might support the Gary proposal because casinos in other states have begun to chip away at that revenue.
"(Casinos) are an important revenue source for the state," Lehe said, "and I know a lot of people don't like that, but it's a fact of life now."
Sen. Sue Landske, R-Cedar Lake, said she needs to know more details about Gary's casino legislation before she can support it.
"That legislative proposal should probably apply to all of the casinos in the state," Landske said.
Other priorities
Landske said she wants to seek new criteria for the state's redistricting process, and she wants to help establish a study committee to make recommendations for the redistricting process in 2021.
Secretary of State Todd Rokita is pushing for reforms before legislative districts are redrawn in 2011. In a conference call with reporters last month, Daniels said American history has been filled with too many examples of "gerrymandering," where lawmakers use political guidelines to redistrict.
"I won't sign any plan that looks and smells like that," Daniels said.
Brown, meanwhile, might have newfound support from the Indiana Chamber of Commerce for one of his legislative priorities: a statewide smoking ban. He said he also will continue to pursue a new teaching hospital for Gary, which was attached to last year's casino proposal.