Quick links:

• 2005 Session Makes History, Limits Future Change
• A Veto?
• Legacy of Citizen Involvement
• Tax Increases: The "New Pork"??
• Times They Are A-Changin'
• Fiscal Policy Updates
• Economic Growth Updates
• Education Policy Updates

2005 Session Makes History,
Limits Future Change

The 2005 Indiana General Assembly will be known for its historical vote to adopt Daylight Saving Time, enhance the state’s largest economic base by expanding the nationally-recognized Indiana Convention Center, and build a new multi-use sports facility for the Colts (and a possible Super Bowl game) and the NCAA (and its promised final four and other national games). In spite of some of the worst partisan politics in recent memory, we ended up with a dynamic pair of projects that are sure to bring increased revenue to the state and to the city of Indianapolis. We thank Mayor Peterson, Fred Glass, Bob Bedel and many others for their leadership in getting these projects outlined, supported and passed this session. “Fund it now!”

While there were significant victories to propel us into the future, the big loser wasn’t just “Indianapolis Works,” but any future attempts to streamline local governments across the state. While trying to protect the township trustees, Marion County Republicans set a precedent that will most likely dampen future efforts for years to come. By allowing townships to “opt in” to fire consolidation makes it more difficult to redesign local government throughout the state, leaving us living in the 19th century.

A Veto?

We are most concerned that other language in SB 307 which directed the City-County Council to approve various municipal corporation and taxing entity budgets – while a great idea – will have disastrous effects on the city’s debt limit. Legal advice on this very issue is contradictory from year to year, but it is curious that this previously-opposed language was agreed upon by the Peterson Administration this year… maybe in an attempt to get the rest of the project, which was subsequently trashed. The Chamber isn’t so sure. Political games aside, might leaving the city and county with impossible financial limitations that can’t be reconciled be a good reason for Governor Daniels to veto SB 307??

Fiscal Policy

Together at Last: A New Multi-Use Stadium AND Expanded Convention Center

It is done. They “funded it now!” 

After a flurry of financing plans and backroom negotiations, the two separate plans to (1) expand the Convention Center and (2) build a new multi-use stadium were successfully reunited at the last minute and passed. While the state oversees the financing and construction, the City-County Council is the lucky entity that gets to raise taxes (hotel to 9 percent from 6 percent, car rental doubles to 4 percent, and food and beverage an additional 1 percent). The donut counties are expected to make good on their promise to Governor Daniels to institute a 1 percent food and beverage tax, for which they will get to keep 50 percent for their own growing needs. Colts ticket customers also will pay and additional 1 percent tax, and if necessary, the new stadium board can add additional ticket taxes. 

Bottom line: these two projects will be a huge boon to the state and local economy and the political posturing didn’t scare us a bit. Everyone would have lost (state and local, Republicans and Democrats) if the legislation had fallen apart.

"Indianapolis Works" Final Bill "Doesn't Work"

We’re going to have to bite our tongues a bit here… but suffice it to say that Mayor Peterson’s plan that the Chamber so strongly supported was, shall we say, rewritten and handed back to us in a form that was deceitfully proposed as bi-partisan. If it is seen as a “start,” then, it is a false start. At the top of this newsletter we raised the question of whether the financial “zinger” thrown in for good measure is actually worthy of a veto. We would add that the study committee is mostly made up of those whom are at risk of losing their jobs, even though we acknowledge that we were respectfully added to the group. And the precedent set for townships “opting in” to consolidation is not so likely given that most folks don’t vote to lose their jobs.

Here’s what did pass:

• Police/Sheriff: City-County Council can consolidate the police department and county sheriff by a vote of the Council.
• Fire: Each township can “opt in” to merge its fire department with the city’s fire department (IFD) by a vote of its township board and its trustee’s approval, and the City-County Council and Mayor’s approval.
• Combined Budgeting: Makes the Mayor/City Controller responsible for all budgeting and tax increases, including over the judicial budgets (yet with no veto power over them). All accounting services/bill paying will go to the county auditor. This would include payroll for all city and county employees to the county auditor, and purchasing department.
• Study Committee: Creates a study committee of 15 members that would review consolidation, duplication and efficiency and report back to the General Assembly by Dec. 1 for a 2006 legislative proposal. The study committee consists of two House members, two Senate members, two Police representatives (one IPD, one Sheriff), two firefighters (one IFD, one township), two City/County Council members (one republican, one democrat), one Marion County Alliance of Neighborhood Association representative, one Greater Indianapolis Chamber of Commerce representative, one Trustees Association representative, one Assessor Association representative and one Mayor’s administration representative.

Stay tuned… we’ll dissect the entire bill in an upcoming issue. 

The silver lining? More community discussion, on-air debates, official hearings and tons of testimony than on any issue in recent memory. Too bad political will was the one thing lacking.

Legacy of Citizen Involvement

In all, however, it was a strong session with lots of pro-business successes, many of which are outlined below in a wrap-up of the Greater Indianapolis Chamber of Commerce’s priority issues report. We send our most sincere thanks to Chamber members who got involved by making a phone call or sending an email or letter. We also thank the media for bringing sustained and citizen-based coverage to the issues.  The legacy of the 2005 Indiana General Assembly will be citizen involvement!

Tax Increases: The "New Pork"??

In the old days, getting a new fire truck for your district was considered “pork.” You know, a little something for your constituents for your vote on something else. It seems these days the “new pork” isn’t a project at all… simply the permission to allow your county to raise tax rates (restaurant taxes, car rental taxes or income taxes) to pay for your own stuff (jails, transportation, etc.). Times are just that tight! Not that we’re complainin’… it appears to have taken at least seven of these types of approvals for tax increases in other parts of the state to get the stadium bill passed. 

Times They Are A-Changin'

It's official... well, almost. Both the House and Senate voted through Daylight Saving Time late last week, so Indiana will join 47 other states in “springing ahead” next April, pending a signature from Governor Mitch Daniels. The Chamber extends its thanks to Representatives Jerry Torr and Randy Borror for their courage and leadership on this monumental issue.

Economic Growth/Business Issues:

Combined Sewer Overflows

SB 620 amends water quality standards to protect a municipality, which has adopted an approved Long-Term Control Plan, from fines resulting from discharge from a Combined Sewer Overflow. The exemption provides businesses the reliability and predictability of regulations they need in order to invest in their communities.

Multi-Jurisdictional Economic Development

SB 571 allows local units of government to partner on economic development initiatives to stimulate economic growth on a regional basis.

Earned Income Tax Credit

HB 1083 would make permanent the Earned Income Tax Credit, which is set to expire this year. The EITC is a useful tool for low-income workers and their families to save money from taxes.

Small Business Protections

HB 1265, which requires state agencies to provide justification for new rules, was amended to include the content of HB 1222, which died during the mid-session walkout. In addition to the justification for rule making, the new HB 1265 creates a small business regulatory coordinator to serve as a liaison between the state and small businesses subject to state regulation.

The bill also provides a small business protection from fines and penalties resulting from minor violations of rules, if the company voluntarily acts quickly to rectify the problem. 

HB 1822 requires a state agency that intends to adopt a rule that will impose requirements or costs on small businesses to prepare an economic impact statement for the rule. It also requires the agency to evaluate and consider alternative regulatory methods that could minimize the impact on small businesses.

Meet Your Chamber Lobbyists

Meet your political "watchdogs" -- the team that takes your message to elected officials, year-round. [more]

Education Policy:

Removing “Politics” from Education

Overseeing Indiana’s education system is a daunting task and many agree, including the Chamber, that a change was needed to provide greater accountability. Two bills were introduced (SB 199 and HB 1486) to appoint the superintendent of public instruction, but died due to lack of hearing. The issue will likely be renewed next year.

Moving ISTEP to Spring Too Expensive

The Chamber believes that testing students in the spring semester will help schools and parents to assess each child’s educational needs while holding teachers and administrators more accountable for classroom performance. The bill to move this controversial test to the spring semester in Indiana schools died for a lack of constitutional majority, seemingly due to its large price tag.

Help for Charter Schools to Leverage Funding

Funding for charter schools has been a point of hot discussion. Current law makes it difficult for new charter schools to receive money in a timely manner to open and begin operation. SB 598, authored by Senator Teresa Lubbers, has passed to provide charter schools with an opportunity to obtain federal money and matching state dollars for school facility financing. The governor is expected to sign this bill into law. More bills to expand the reach of charter schools were introduced but failed to pass this session. HB 1674 would have allowed a second-class city to issue a charter school while HB 1694 would have granted private colleges and universities the authority to have a charter school.

Providing Parents and Children with Options: School Choice Legislation

An attempt to pass Indiana’s first school choice program died due to a lack of legislator support. As a supporter of education reform, the Chamber advocated for school choice legislation this session. The bill would have allowed a student in a failing school to transfer to another high-performing public, charter or private school. It would have provided parents with tax credits for education expenditures, including tuition, and a scholarship program for students currently enrolled in failing public schools.

College-bound Curriculum for All Students

Improving Indiana's accountability in the classroom has captured the attention of lawmakers this session. SB 200 passed both Senate and House to require all students to complete the “Core 40” curriculum (college-bound courses) to graduate. Governor Mitch Daniels has signed this bill into law.

While "Core 40" is a college-bound curriculum, the philosophy of this initiative is based on the belief that it is better to pass an academically challenging course than to earn a higher grade in an easier course. A student who successfully completes the "Core 40" curriculum will be better prepared to gain admission to a technical school, community college, university, the military, or earn employment

New Kindergarten Enrollment Date Established:

Senator Teresa Lubbers (R-Indianapolis) successfully amended legislation into the budget bill (HB 1001) that would extend the kindergarten enrollment date from July 1 to August 1. It would also extend the date to September 1 in 2007. The Chamber believes that this measure puts us one step closer to passing full day kindergarten in the future.