Transportation
Republican Gov. Mitch Daniels is counting on a lease of the Indiana Toll Road to cover most of the $2.8 billion in new construction included in his 10-year transportation plan. The deal requires permission from the Legislature. Local lawmakers aren't convinced enough money will be spent in Northwest Indiana.
Democrats remain wary of any privatization plans.

Property taxes
Lawmakers from both parties want to offer homeowners some relief, though Democrats contend Republicans are merely looking to make friends in an election year. A House GOP plan would absorb state welfare levies, which could mean a 10 percent break in Lake County, but only a 2 percent cut in Porter County. The governor is among those who say the plan's $150 million price tag is too expensive. Other lawmakers say the tax break should be distributed evenly statewide. Local lawmakers also want to make permanent a cap that ensures homeowners don't pay more than 2 percent of their home's assessed value.

Local government modernization
Gov. Daniels spent his first year slimming down state government -- cutting 3,000 jobs and privatizing some services. Now he wants local governments to follow his lead. He wants to encourage consolidation and has hinted that township posts could be on the chopping block. Daniels also supports an Association of Cities and Towns plan to swap property tax reductions for the authority to impose local taxes on sales, hotel rooms, food and beverages and a supplemental income tax.

Schools
The governor would like to see more belt tightening here. Statewide, a 1 percent cut in administrative overhead would produce enough money to fund things like all-day kindergarten, Daniels said. Senate Democrats want lawmakers to mandate all-day kindergarten for the 2007-08 school year and figure out a way to pay for it next year. Local lawmakers will pursue legislation making it a misdemeanor to bring a knife to school, a reaction to the 2004 slashing attack at Valparaiso High School.

Telecommunications
Deregulation is the word. It could spell an intense battle between consumer advocates who warn of higher bills and phone companies who say they need more freedom to compete with cellular phones and cable companies that offer high-speed Internet service. Supporters, including the governor, say deregulation could increase investment in broadband services. Opponents say unregulated phone companies might decide to stop offering service in rural areas.

Time
House Democrats will attempt to make political hay out of last year's Republican-led effort that moved the entire state into daylight-saving time. Republicans are in control, so this issue won't go far.
BY PATRICK GUINANE
pguinane@nwitimes.com
317.637.9078

INDIANAPOLIS | Change will be the major challenge Gov. Mitch Daniels brings before the Indiana General Assembly when it gets down to business this week.

Already, he has said he wants to privatize many government functions.

He is anxious for the Legislature to support a transportation plan that includes leasing the Indiana Toll Road and possibly taking on a private partner to help build the remainder of Interstate 69 from Evansville to Indianapolis.

And Daniels is expected to push for abolishing township government, merging it with streamlined county government.

In an interview with The Times, the governor said, "I want to see us modernize government in ways that will help on local property taxation, but we'll chase our tails as long as local payrolls are bloated, local spending is inflated, and that's got to be the starting point."

It's a signal that he favors greater efficiency with more accountability in local government.

So beginning Monday, in spite of his fellow Republicans holding a slim edge in the House, Daniels will have a hard sell for many of his programs.

Legislators of both chambers return to Indianapolis this week for the first time since cementing a last-minute deal to finance a new Indianapolis Colts stadium and to create the Northwest Indiana Regional Development Authority.

Daniels last week said he looks to continue support for the RDA in the current session.

"I put the RDA in Northwest Indiana very high on my list. ... I think the economic potential of the area is so high, I'm excited about unlocking it," he said.

But Daniels' proposed programs for change also are likely to face a hard sell because many members of the General Assembly face the voters in elections this year.

The GOP holds a two-seat advantage in the House. Inaction could prove costly if Democrats take back the House in this year's elections. They then could block policies emanating from Daniels and the solidly Republican Senate.

Looming elections also help explain why House Speaker Brian Bosma, R-Indianapolis, has indicated Indiana's time zone debate is a thing of the past. For the same reason, Democrats, led by House Minority Leader Patrick Bauer of South Bend, will continue to remind disgruntled Hoosiers that it was the GOP that forced the entire state onto daylight-saving time.

Political squabbles aside, transportation, property taxes and plenty of other substantive issues will dominate debate between now and the session's March 14 adjournment. The House got a head start last week, taking care of a pesky prayer issue. Bosma replaced the traditional opening prayer with a voluntary, before-session version meant to satisfy a federal court ruling against overtly Christian themes.

For Northwest Indiana, the biggest showdown looms over the governor's plan to lease the Indiana Toll Road to a private, possibly foreign, company. The plan could reap more than $2 billion in upfront cash. Daniels needs the money to finance most of the new construction in Major Moves, his 10-year transportation plan.

A private firm would operate the 157-mile roadway and collect the tolls, which, for commuters, will nearly double later this year. The toll hikes, the first since 1985, are crucial to the lease deal. In exchange, Daniels has offered the region about $1 billion over 10 years, including $100 million for the RDA, $100 million in local grants and $344 million for transportation upgrades along the Toll Road corridor.

Local lawmakers aren't convinced that's enough. They want to ensure that Indiana Toll Road revenue doesn't subsidize downstate road construction.

"I, personally, am not opposed to leasing of the Toll Road, but there's a lot of discussion about the details," said Rep. Chet Dobis, D-Merrillville. "It doesn't seem to me as though there are enough projects that would have funding from the Toll Road in the entire region. No one I've talked to agrees with spending that money on I-69 and everything around Indianapolis without the north being included."

Major Moves also calls for a privately financed tollway that would extend Interstate 69 from Evansville to Indianapolis. Legislators from Northwest Indiana want to see the details of legislation that Daniels seeks before authorizing the private deals for the Indiana Toll Road and I-69. Lawmakers also want to see how much the Toll Road might fetch. Bids are due Jan. 20.

"We're very cautious with the thought of leasing the Toll Road," said Sen. Vic Heinold, R-Kouts. "That's been a pretty strong asset for the northern part of the state. It's pretty hard to say 'yea' or 'nay' until you see all the numbers."

Beside transportation, Daniels said he will be seeking added support for schools and pushing programs to strengthen Indiana's economy.

As for the political picture, he said, "When you're trying to make as much change as we do, it's never going to be smooth. But I think this year should be smoother. I certainly enter it with a lot of optimism."
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