Legislative debate on taxes, gay marriage ring in the new year

In the new year, Indiana lawmakers will debate sending a proposed constitutional ban on same-sex marriage to a statewide referendum. And Gov. Mike Pence will once again ask lawmakers to adopt a tax reform measure, after spending his first legislative session as the state’s top executive advocating for an income tax cut.

In question is what extent the debate over the social issue of same-sex marriage will play in the 10-week session.

House Speaker Brian Bosma (R-Indianapolis) has said the proposed ban will be treated like any other bill, while key Democratic lawmakers have called on their Republican counterparts to take the proposal off the table.

“I don’t think it should be killed by one person whether that is a university president, or for that matter, the Speaker of the House,” Bosma said when the Indiana General Assembly convened for Organization Day. “This body should decide whether it goes to the people for a vote.”

Pence has reiterated his support of traditional marriage in speeches leading up to 2014 session of the Indiana General Assembly but has not made the issue a focal point.

Lawmakers initially passed the amendment’s wording in 2011, but a separately-elected Legislature also must approve the language. If passed, the proposed constitutional amendment will go to voters as a referendum on the November ballot.

Along with same-sex marriage, the current wording of the amendment bans civil unions. If lawmakers choose to change the wording of the amendment or strip out the portion dealing with civil unions, it would likely restart the approval process.

Senate President Pro Tem David Long (R-Fort Wayne) has said he wouldn’t have wanted to see a civil unions ban if the legislation had been written today because society’s view on the issue is changing.

If the language of the amendment does pass, the proposed ban could become a dominant issue in the November 2014 election, given the ballot’s lack of a presidential or governor’s race.

Ahead of the 2014 session, Pence is aiming for another round of tax reform.

This time he’s zeroing in on a proposed phase out of the tax Indiana businesses pay on machinery and equipment.

Critics of the phase out argue the tax provides a much needed $1 billion per year to local governments and schools. Evansville Mayor Lloyd Winnecke said the city would need complete replacement of the revenue it would lose.

Proponents, led by Pence, say doing away with the tax would spur growth and investment in the state. Pence and Republican legislative leaders have said that if a phase out does occur, it would be done in a way as not to “unduly” burden local governments. However, Pence has been short on details on replacement revenue for those communities if the top item on his economic development agenda is passed.

The proposal follows the 5 percent reduction in Indiana’s individual income tax passed last session. That reduction will be rolled out beginning with a 3 percent cut starting in 2015, and an additional 2 percent cut starting in 2017. The reduction which Pence had made the hallmark of his first legislative agenda as governor was less than the 10 percent reduction he originally sought.

Pence has declined to go into detail on how he wants the phase out of the personal property tax to occur, saying he wants lawmakers to have a broad debate on the matter.

In a speech this month, Pence said the state may consider leaving the decision on whether to phase out the tax to counties or exempting new investments purchased after a certain date.

State Sen. Ryan Mishler, R-Bremen, said lawmakers need to look at the entire tax climate of Indiana noting the elimination of the inheritance tax and reductions in the corporate income tax. Mishler, the ranking member on the Senate Appropriations Committee, acknowledged the hit to local governments if the personal property tax were to be eliminated while speaking on a panel at a legislative conference earlier in December.

“I think as a business owner when I look to make a move I look at the tax packageWhen we just talk about the personal property tax, I think we need to look at the entire tax climate of Indiana and say we’ve done a good job,” Mishler said.

Here’s a look at how other issues may play out in 2014:

Proposed voucher expansion

Pence has proposed to further expand Indiana’s voucher program. Earlier this year, Pence signed a bill that lifts the requirement of a student spending a year in public school before a voucher can be used if the alternative is the student attending a school receiving a “F” accountability grade. For the 2013-14 school year, 20,047 children are receiving vouchers, according to the Indiana Department of Education. That number is up from the 9,324 recipients in the previous school year.

This session the proposed expansion would benefit low-income, pre-kindergarten students. The voluntary program would be usable for the school year or summer preceding kindergarten at public or private providers. Families with household incomes up to 185 percent of the federal poverty level, which for a family of four is $43,567, would be eligible.

Pence has said he wants lawmakers to set up the program in 2014 and fund it during the next budget writing session in 2015.

As for the tension that has marked Indiana State Board of Education meetings, members passed a series of changes to the board’s operating procedures this month. In November, Indiana Superintendent of Public Instruction Glenda Ritz abruptly left a meeting and has also accused the Pence-created Center for Education and Career Innovation for attempting to “undermine” her department.

However, when the board met Dec. 20 to give final approve to A-F accountability grades for Indiana schools, the meeting had a more congenial tone.

Rockport

The proposed coal-to-gas plant appears to have found new life following an Indiana Supreme Court ruling.

The state’s five-member high court voted unanimously to allow a contract between the project’s developer Indiana Gasification LLC and the state to proceed. The contract, signed under the administration of former Gov. Mitch Daniels, commits the state to buying the synthetic gas produced by the plant for 30 years.

The project’s manager, Mark Lubbers, declared the court’s ruling as a victory, but has said the plant would need the support of Pence to move forward.

Pence told the Courier and Press that he expects the proposal will return to the Indiana Utility Regulatory Commission for further review before it gains final approval.