(STATEHOUSE) March 6, 2002 - Republican Leaders from the House and Senate joined State Auditor Connie Nass today to reveal potential savings of millions of dollars to the state of Indiana. Jeff Espich, (R)-Uniondale, the House Ranking member from the Ways and Means Committee and Robert Meeks, (R) LaGrange, Chair of the Senate Finance - Budget Subcommittee along with Nass took the opportunity to call for a thorough examination of existing revenues before any consideration is given to raising taxes permanently to address the state's temporary budgetary shortfalls.

"We have identified millions of dollars which could be used to cover the state's budget deficit. The Governor is either unaware of, or has chosen to ignore this opportunity," said Nass. "If any of this money can be put to better use, then the effort will have been worthwhile. Every taxpayer dollar is important."

Auditor Nass indicated that her staff has made an estimate that at least $250 million could be used to address the state's budget deficit without raising taxes or reducing services, and Sen. Meeks and Rep. Espich agreed. Throughout the current legislative session, Governor O'Bannon has proposed permanent tax increases and threatened cuts to essential services including education to address the state's budget deficit.

The three fiscal leaders called for an immediate response from the Governor, in the short term, to begin an in-depth analysis of the thousands of non-reverting accounts outside the general fund that carry balances above their needs, or take more revenues than their purposes require. They also recommended a long-term statutory remedy that would provide a mechanism to periodically release funds that are no longer necessary or are not being used for their intended purpose.

"The Governor has stated that he has cut state spending to the bone. This evidence suggests that he has yet to pick up the knife," said Nass. "With the Governor's insistence on increasing taxes, our office began an examination of these accounts to see if potential savings to Hoosier taxpayers could be found. The Senate had the good sense to include some of these funds in the latest version of House Bill 1004.

That the administration has either overlooked or ignored these balances is mind-boggling," Nass continued. "Before he can, in good faith, ask Hoosier taxpayers for permanent tax increases, he must first examine the use of every dollar already collected. Hard working Hoosiers deserve that kind of effort from their leaders."

Republicans have maintained that although tax restructuring should be addressed this legislative session, they are opposed to permanent tax increases to bailout the budget shortfall that was worsened by excessive spending. Senator Meeks and Representative Espich applauded the Auditor's work.

"This further supports our position that we must not act in the final days of this year's legislative session to raise taxes that are unnecessary," said Espich. "We must remember that in tough economic times, our families and businesses are operating with less in the bank. So too should state government. Furthermore, when dealing with tax restructuring, we must do so in a manner that is revenue neutral, meaning that not one more dollar is raised than is lowered in other forms of tax relief."

"Any ideas that help resolve the State's budget problems without raising taxes or hurting our most vulnerable citizens are certainly worth serious consideration," said Meeks.

The Senator also warned that although the recently discovered funds are real and should be used to address the budget deficit, this discovery is just a piece of the puzzle.

"To be good fiscal managers, we also must plan for the future in a way that does not place unnecessary burdens on the Hoosier taxpayer," said Meeks. "These savings will help get us through this biennium and into the next. In addition, we must continue to work towards long term solutions to ensure that better management is taking place and that our state's fiscal house is in order."

"I'm both surprised and disappointed that the Administration has not already identified this as a possible source of funding," added Espich. "Solving tough problems requires thinking 'outside of the box.' I'm glad that our State Auditor is doing just that and bringing forth creative alternatives that protect the Hoosier taxpayer."

This is just the beginning of a process that must be done to give the legislature the most accurate information possible before painful cuts or permanent tax increases are imposed upon hard working Hoosiers. Today, the Auditor along with Senator Meeks and Representative Espich offered three examples of accounts with funds that have laid dormant and could be available to address the current budget deficit. (Attached is a summary sheet of these three examples)

Both Sen. Meeks and Rep. Espich have commended the work of the Auditors Office as essential to legislative efforts to build a taxpayer friendly and functional budget plan for next year. The three fiscal leaders emphasized that in these tough economic times, Hoosiers deserve better fiscal management and leadership in government that will work for the taxpayer not depend on the taxpayer for a bailout.