Veritas Rex

Sine Die from the Capitol

Sine Die from the the Gov’s office

Governor Mitch Daniels just concluded his press conference over the closing of the 2008 Indiana Legislative Session, praising both houses for a bipartisan accomplishment for his historic property tax reform. Reporters pressed the first term governor to score political points but Mr. Daniels simply referred to the legislation as a “win for all Hoosiers” in a year when many citizens saw their taxes skyrocket.

Mr. Daniels repeatedly praised senate and house leaders by name for their bipartisan work resulting in a “new era of reform in Indiana.” The governor adamantly believes that today’s passage will usher in permanent protection for Indiana, adding that it’s a legislation environment like this that help explains why CEO magazine recently described Indiana as the “best place for business outside the sunbelt.”

It wasn’t all softball questions, however, in that Mary Beth Schneider of the Indianapolis Star queried the Governor on whether he relishes the role of being the author of a bill that will raise taxes for Hoosiers; sales tax will rise from 6% to 7% as an offset to property taxes decreasing, arriving at a net tax reduction. Daniels appropriately rebuffed her question, reminding the reporters that the legislation is a “major net tax cut.”

All in all, a lot of work got done during this short legislation session, all calculated for the dual purpose of tax relief for Hoosiers and economic development for Indiana. Whether 2008 actually helps the state’s economic development, however, might be questionable. Veritas Rex remembers Indiana Economic Development Corporation founding director Micky Mauer always reminding policy makers that Indiana does too much bad stuff and not enough good stuff; too much smoking, too much fatty eating, and not enough exercising makes for bad vibes among corporate shopping for a solid workforce pool for new business or expansion. The relevant question for 2008 is whether this year’s gambling expansion deserves to be on that “good” or “bad” list.

Sine Die from the L. Gov's office

I subsequently posed that question to the Lt. Governor, and it’s clearly not the kind of question that she enjoys taking, as her long time stand against gambling doesn’t necessarily square with Governor Daniel’s support (even if unenthusiastic support) of gaming expansion. She’s first and foremost a loyal supporter for the administration’s policies, and kudos enough for it.

She very diplomatically and carefully explains that she has been an opponent of gambling since her days as a state senator in the 80s and 90s, and personally hopes for the day when gambling declines.

Until then, I follow up, will there be appropriate increases in gambling counseling and intervention in the 2008 budget? Mrs. Skillman affirms, explaining that every budget since 2005 has increased in this area. She carefully and deliberately concludes the point by invoking Ronald Reagan, who opposed gambling’s expansion in the Golden State: “I prefer to govern Californians based on their strengths, not their weaknesses.”

A plaster bust of Ronald Reagan sits atop a fireplace mantle in Mrs. Skillman's office, appearing just over her shoulder as she quotes the Greatest Communicator. With the session's completion, the 2008 campaign trail is next.

Property Tax Reform Consensus Cracks

     Today's Indianapolis Star reports the Indiana House Ways and Means Committee voted 11-10 along strict party lines to remove the 1 percent cap on property taxes and to impose residential property taxes based on household income.  This is both a sharp departure from the consensus that has guided deliberations thus far and a remarkable creation of a new form of income tax for tax-weary Hoosiers.

     My hunch is this is simply a negotiating ploy -- it is not an idea that was debated and vetted prior to Wednesday's vote.  Party line positions on untested ideas late in the session rarely become new  public policy.

     Please share your thoughts with Veritas Rex readers on the substance of the measure.  My guess is this will fail to pass the full House as that chamber stakes out its final position prior to negotiations with the Senate (and the Governor).  But beyond that, it strikes me at first reading as bad public policy.  I'll keep an open mind as I learn more, but it is a second income tax rather than a reform of property tax. To that degree, it is anti-family.  I say that because families are consumers and generate extra income to meet the needs of the next generation.  This is the so-called "wealth effect" experienced by married couples. Sales tax, too, is anti-consumption and so hits families harder.  This double-barreled tax blast (increase sales tax, link property tax to household income rather than assessed property values) hits families hardest.

 

Organization Day

Today is Organization Day at the Statehouse.  Legislators have come back to Indianapolis to take on the people's business.  Much will be made of the need for property tax reform.  This is a real need.  However, in a short session, some will be tempted to hide behind the property tax issue in order to duck other important issues. 

One such issue is the Marriage Amendment.  Given our constitutional amendment process in Indiana, if the Marriage Amendment does not pass this year it dies.  It takes a minimum of four years to get a constitutional amendment on the ballot.  Last session, House Speaker Pat Bauer sent the Marriage Amendment to the House Rules Committee to die.  However, he has made campaign promises to give the Marriage Amendment a fair up or down vote.  It will be interesting to see how things unfold this session.  Stay tuned...

For more information about the Marriage Amendment please visit our sister organization, Indiana Family Action, website:  www.idosupportmarriage.com

Governor's Property Tax Plan This Week?

     The Indiana Family Institute has been asked to evaluate the Governor's property tax plan, which we've been told will probably be released within the coming week.

     Any insights or briefing we get will likely come after the key elements have been announced, but we look forward to offering our analysis of the proposal for readers of Veritas Rex.  Any proposal will be the starting point for debate in the upcoming short session of the Indiana General Assembly on property tax reform, although conceivably the Governor could take some steps through Executive branch action.  Dramatically rising local property tax bills and the inept handling of the issue in the past session have combined to give the issue great political saliency around the state.  The mess is so bad that as one taxpayer (Boone County resident), I still don't know my 2007 bill (the first half of which was due in April of 2007). 

No more paper tigers - nowhere to hide on SJR 7

The recent Ohio Supreme Court ruling was a gift to Indiana.  It ruled that Ohio’s marriage amendment, which Hoosier opponents claimed was similar to Indiana’s proposed SJR 7, posed no threat to protecting homosexual partners from domestic violence laws.

 

Terri Austin must be thrilled that she can now get this whole thing over with and just vote yes like she said she wanted to.  You’ll remember that although she voted yes on SJR 7 in ’05 and pledged to support it again in ‘07, her fears that it would un-do Indiana’s current partner-friendly domestic violence laws led to her tearful killer vote last session.  Hence, today’s full-page ad in the Elwood Call Leader courtesy of the American Family Association of Indiana PAC. Download NoMoreTearsAustin.pdf

 

Domestic violence fears should now be put to rest, not just for Rep. Austin but for many in her caucus who conveniently overlooked the stacks of legal analysis provided them to the contrary.  Now they don’t have to actually read them...they can just rely on the Ohio Supreme Court decision.  Add that other legal analysis and corporate agreement that SJR 7 won’t hurt private companies or universities that currently offer partner benefits, and we should be ready to pass SJR 7 handily next session.  And that level playing field argument for attracting workforce?  Also a paper tiger - the vast majority of states have a law or constitutional amendment banning same sex marriage, so it's not like there are more states that are 'friendly' to run to.

 

This is great news for House Democrats.  Your fears were unfounded. With corporate benefit concerns and workforce attraction out of the way and no impact on domestic violence, come back to your senses and let’s pass this thing and get it into the voters where it belongs.

 

What?  A new concern?  Surely not...

Obsessing: Indiana Equality can't get enough of us

A recent Indiana Equality fundraising appeal caught my attention.  Apparently, they can't get enough of us.  You'll have to read through the entire email, but they must spend a lot of time talking about what we are doing here.  The Veritas Rex post they mention merely posed a question, but of course, it is taken out of context in an attempt to paint a picture that will help them raise money.

Also, feel free to check out the website they are talking about, www.idosupportmarriage.com.  Get involved in the campaign to let the people of Indiana vote.  Our opponents are quite fearful that this might actually happen.  They know that they could never win a statewide campaign against traditional marriage.  Their only hope is Pat Bauer.    

They are at it again.

The proponents of SJR-7 have not taken defeat lightly.  They are mobilizing forces across the state and are making it clear in a number of ways that SJR-7 is a single issue of focus.  That’s why we need to be prepared and we need your help to do it.

How do we know this?  Because of repeated communications urging Hoosiers to support SJR-7. 

Here are a few phrases from a recent e-mail that the American Family Association of Indiana put out last week criticizing Republican and Democrat elected officials for their support of the Indianapolis Gay Pride Festival.

“On June 9th thousands of homosexual activists gathered in downtown Indianapolis for a ‘festival’ and parade, which has is extreme as anything you might associate with a San Francisco pride event.  You can see pictures of this sad display here:  www.afa.net/gallery/index.html

The e-mail goes on to criticize the elected officials who participated in the parade “alongside drag queens, transvestites and barely clothed homosexuals.”  In its criticism of Secretary of State Todd Rokita for having a booth at Pride, the e-mail states: 

“The Secretary of State’s decision to pay for a booth looks as though he is standing alongside radical groups like the Human Rights Campaign which works to destroy traditional marriage, or Indiana Equality which works to pass special rights for cross dressers, or the homosexual churches which work to rewrite the Bible and to defame Jesus Christ.” 

The e-mail also praises 6,000 members of the AFA of Indiana network for contacting Gov. Daniels regarding recent statements about “marriage protection” and for sending a letter to Pride organizers.

In addition to this recent e-mail, there’s also a new web site we think you should see, www.idosupportmarriage.com. Using the rallying cry of “Let me vote in 2008,” the proponents of SJR-7 are undaunted in perpetuating this wedge issue. 

Finally, it appears SJR-7 proponents will clearly stop at nothing to further their cause, even if it means exploiting the ongoing property tax crisis.  In a recent blog posting, Curt Smith sent a strong message to House GOP members, writing: 

“Will the House members trade acquiescence on the tax issue for a floor vote on SJR 7, the measure to define marriage as the union of one man and one woman, as a way to show their base they are not running away from them?”

We need to act now to stop this nonsense, and we need your help to do it.  Indiana Equality has always done a great deal with few resources.  However, the LGBT community is up against a well-funded network of people who will stop at nothing to see discrimination permanently written into the Indiana Constitution. 

We scored a major victory in April.  But it was one battle in the war.  There are more to come and we must be ready.

Donate to IE to support the fight against SJR-7.

Fighting SJR-7 takes time and it takes money.  The SJR-7 proponents are well funded, and we can’t afford to take the pressure off now. Please donate today by visiting our secure website.

As always, thank you for your support.

Sincerely,

               

Jon Keep, President   

The Elephant Behind the Property Tax Crisis

While the short-term fix of allowing property taxpayers to pay their 2006 rates brought needed relief, and the commission composed to find ways to eliminate unnecessary layers of government may find ways to save taxpayers money, there is still an elephant in the room when it comes to Indiana's property tax crisis.  Schools spend a majority of the property tax revenue, so it seems that regardless of how one restructures the tax system (which needs to be done) or eliminates unnecessary layers of government (which needs to be done), we must take a serious look at the public schools.

By its very nature government is inefficient and often puts out a substandard product.  A simple look at the postal service or the BMV helps us understand this fact.  However the public school system is different, of course, because it produces the next generation of Hoosier minds, no small responsibility.  Yet, despite the tireless work of many educators our system continues to become more and more expensive, yet offers dismal results.  Simultaneously, the world is passing us by when it comes to producing the best and the brightest.  Here is a potential solution from Jonah Goldberg.  Let's have an open and honest discussion about the elephant behind the property tax crisis.

Eliminating All Residential Property Tax In Our Future?

        We hear there's disappointment among some Indiana House GOP caucus members that (as a group) they did not push to eliminate all residential property tax in its official response to the growing property tax revolt in Indiana.  Obviously, such a change would require increases in income and/or sales taxes to accomplish such a dramatic revenue shift.  But one source indicates members thought they had that agreement (which would have led to a unified, bold public position), but then something funny happened on the way to the press conference.

        House GOP members as a group opposed the property tax rebate plan that officeholders are now busy running away from with property tax bills beginning to hit (and that's the right word -- hit) Hoosier mailboxes. They now have the opportunity to say, "We told you so," if they can take a clear, consistent position that garners mainstream media attention.  Looks like one opportunity was missed.  Will they fare better in the future?  Will the House members trade acquiescence on the tax issue for a floor vote on SJR 7, the measure to define marriage as the union of one man and one woman, as a way to show their base they are not running away from them? 

A perfect storm for Mitch's unique qualities

The long-lamented fact that Governor Daniels isn't a die-hard political party guy could come in handy right now with the property tax crisis.  He is uniquely situated to run up the middle between political factions and various levels of government.  The fact that he runs the state more like a CEO than a political hack is also pretty handy -  while others waste time explaining things, Governor Daniels is the guy who can stand at ground zero and take charge, lead, and give orders.  And that's what he does best anyway. 

Governor, suspend for a little while the analysis of which levels of government do what and which elected officials are in charge of what.  Right now, the folks don't care and you shouldn't either.  We want a leader - someone who will call others together and bang heads until short-term relief is available and long-term restructuring has begun. 

This just may be the perfect storm within which Mitch Daniels can shine - to mix his exquisite and unique problem-solving skills with his bully pulpit and bust through the government maze to find real solutions for real Hoosiers.  This could be his finest hour...the reason he was elected Governor.  For such a time as this.

A Payment Plan, You Say?

Governor Daniels announced yesterday that he wants to suspend state rules to give homeowners more time to pay their bills.

If you’re alive and you live in Indiana, you know about the property tax crisis.  It’s been getting larger and larger for years.  Now, some folks will be suffering with more than 100% increases in their property tax bills.  That’s right, a whopping 100%!

What did the legislature do, you ask?  Well, Speaker Bauer thought it wise to institute a rebate program.  And not just any rebate program.  This one comes with a letter telling homeowners of the legislature’s generosity.  Huh?  You mean I get suckered with an enormous bill, and I’m supposed to thank you for sending a small portion of it back to me?

There’s enough blame to go around, that’s for sure.  From the local government officials, who control budgets funded by property tax dollars, to the state legislature, who failed to overhaul the system, this problem has seen one bandaid fix after another.   So far, the attempts to remedy the problem are like trying to plug holes in the Titanic with silly string.

I’m pleased that the Governor is providing some help for homeowners.  What I’d really like to see, though, is a solution.