By Eric Bradner, Evansville Courier & Press
INDIANAPOLIS - State lawmakers today took the first step toward bailing the struggling group that runs Indianapolis' pro sports stadiums out of its financial woes, in part by doubling Indiana's alcohol taxes.
Many lawmakers say they're hesitant to back a plan they've dubbed special treatment for Indianapolis, but the Senate Appropriations Committee advanced the proposal offered by its chair, Noblesville Republican Sen. Luke Kenley, on a 10-2 vote.
Kenley is working to bolster the struggling Indianapolis Capital Improvement Board, or CIB, which runs the Colts' Lucas Oil Stadium, the Pacers' Conseco Fieldhouse, the minor league baseball Indians' Victory Field and the Indiana Convention Center. The board faces a $47 million budget shortfall this year.
Kenley's plan includes:
Doubling alcohol taxes. The new tax rates would be 23 cents per gallon on beer, 94 cents per gallon on wine and $5.36 per gallon on liquor. Marion County's share - about $8 million a year - would go directly to the CIB.
Expanding the Professional Sports Development Area, which currently includes the stadiums and convention center, to also include a new Downtown Indianapolis hotel. The $6 million a year sales tax from the hotel would go to the CIB, rather than into the state's general fund.
$10 million in budget cuts from the CIB.
$5 million contributions each year from the Colts and Pacers.
Higher taxes on sports tickets, hotel rooms, and food and beverages in Marion County alone.
Supporters say the bailout is critical to preserving one of Indiana's strongest economic engines, but signaled they want the state, not Indianapolis, to shoulder more of the burden.
First, top Indianapolis Colts executive Bill Polian and Indiana Pacers chief operating officer Rick Fuson, who testified before the committee Thursday, haven't agreed to pay the $5 million a year Kenley is asking of them.
And second, even though he appeared alongside Kenley last night when the senator announced his proposal, Indianapolis Mayor Greg Ballard told the committee this morning that he doesn't want to raise local taxes, especially the food and beverage tax. "I'm just scared to death of taxing too much," Ballard said.
But the alternative - the way the state can offer Indianapolis more help - is to further expand the professional sports development area, allowing it to capture the sales tax from more downtown venues.
That means money that would've gone into state coffers, just like sales tax revenue from everywhere else in the state, instead would go directly to Indianapolis.
Bauer said that won't fly in a state where 9.4 percent unemployment and declining revenue have left those outside Indianapolis short on cash, too.
"If you will bail out one area of the state, you should bail out the whole state," Bauer said.
The $42 million in new alcohol tax dollars would be split on a per-capita basis among the state's cities and towns, a provision dangled to get lawmakers outside Indianapolis to support the plan. Evansville's share would be $1.27 million.
Kenley pitched that shared money as a way to stimulate local economies across Indiana, but opponents said their constituents don't want new taxes.
"I certainly think some of the voters back home will be stimulated, but not in the way he thinks," Bauer said. "I don't think they'll be very happy."
Minority Republicans in the House showed their disapproval of the plan, too. Rep. Suzanne Crouch, R-Evansville, called it special treatment for Indianapolis.
Minority Leader Brian Bosma, R-Indianapolis, hinted he'd like the city to play a larger role in solving the CIB's money woes, calling for "forced creativity" from cash-strapped local governments.
Bosma said Kenley's proposal received a "rather cold reception" even in his own party's caucus. Members are hesitant to back higher alcohol taxes, or any tax increases, for that matter.
"Raising taxes will be our last resort," he said.