Published: February 27, 2009 01:30 pm      

Indiana Gov. Daniels takes on stimulus, pushes policies at One Southern Indiana luncheon

Governor speaks at 1si luncheon

Indiana’s somewhat unique position as a state not operating in a deficit will make the distribution of economic stimulus money fairly different than others.

That’s according to Gov. Mitch Daniels, who talked about the economic stimulus plan and continued to press for his state policy initiatives during a luncheon Thursday.

The luncheon, held at Amatrol Inc. in Jeffersonville, was hosted by One Southern Indiana, the area’s economic development agency.

“Indiana is in somewhat different shape than most states,” Daniels said.

About 32 states are cutting kindergarten through 12 education funds, and 24 states have proposed tax increases, he said. Neighboring Illinois is trying to borrow money in order to pay its bills.

Those states are trying to keep their day-to-day operations running or “fill in holes,” as Daniels put it.

In distributing Indiana’s $4.3 billion share of stimulus money, state lawmakers have to be careful not to create “cliffs,” Daniels said, referring to creating programs that the state would not be able to fund two years from now after stimulus funds dry up.

The bill is written for states in the worst shape, Daniels said.

Indiana will focus on highway and clean-water projects with its share of the package.

The $787 billion federal stimulus package has been championed by President Barack Obama as a means of jump-starting the troubled U.S. and world economies.

The state has released two lists of projects that could potentially be paid for by stimulus money given to Indiana. There are no projects in Clark or Floyd counties on either one, although these lists are separate from certain transportation-specific stimulus funds.

Aside from the stimulus, the governor called on lawmakers in Indianapolis to act on some of his legislative initiatives.

He called on the General Assembly to make the property tax caps — that members voted for last year — permanent through a constitutional amendment.

House Bill 1001 placed a 1 percent cap on a home’s assessed value, which means less property taxes for local governments. A 2 percent cap was put on rental properties, and a 3 percent cap was administered on business properties.

Daniels said that he wants the caps put into the state’s constitution so that a future Legislature or judge can’t revoke them.

Further, the governor applauded the state Senate for acting on some of the Kernan-Shepard recommendations. Those ideas were released last year by a panel led by former Gov. Joe Kernan and Indiana Supreme Court Chief Justice Randall Shepard. The purpose of the committee’s report was to streamline local government and thus lower property taxes.

He urged the House of Representatives to act on the recommendations as well.

Daniels again touted the idea of an automatic taxpayer refund, by which the state would refund money after it reaches a certain level of reserves. He also called for increasing efficiency in education spending by lowering the amount spent on administrative and overhead costs.



Questions and Answers

Typical in such events, the governor took questions from audience members.

Addressing a comment on the Ohio River Bridges Project, Daniels said a new, bi-state authority with representatives from Kentucky needs to be created.

The $4.1-billion Ohio River Bridges Project seeks to construct two new spans between Louisville and Southern Indiana. The Hoosier state has its share of the money for the project, thanks to the $3.8 billion lease of the North Indiana Toll Road. Kentucky is still looking for a way to pay for it.

Addressing a question about a proposed federal coal fire plants, Daniels said, “People on the coast … have pointed a giant cannon at states like Indiana and Kentucky,” which use coal for energy.

The tax will be paid overwhelmingly by residents in such states.

“I honestly hope that we will think twice before we pile another enormous burden on this economy.”



BY THE NUMBERS

• $4.3 billion

Indiana’s share of the federal economic stimulus package

• $787 billion

Amount of federal stimulus package