(STATEHOUSE) Sunday, April 29 – House Republicans closed the 2007 legislative session standing firm for Hoosier property taxpayers and voting against the flawed biennial budget bill while enjoying success with much of their 2007 legislative agenda.

House Republicans Stand Firm for Property Taxpayers

House Republicans stood firm to protect Hoosier property taxpayers from outrageously high increases to their 2007 property tax bills.  At the beginning of budget negotiations, nothing was done to address the projected 24 percent average property tax increases across the state.  House Republicans demanded $300 million in property tax relief over the biennium for Hoosier property taxpayers.  The $300 million requested would have brought the annual increase to property tax rates to the average annual increase of 5 to 6 percent. 

House Republicans won two-thirds of the tax relief requested, gaining $200 million in property tax relief for Hoosier property owners over the biennium.  This will bring the projected 24 percent increase down to an approximate increase of 8 or 9 percent, still extremely high.  Unfortunately, being the minority party, House Republicans were not able to talk Democrat leadership into providing the additional $100 million over the biennium that would have left property owners with the same increase they had been used to every year prior to 2006.  When House Republicans were the majority party in 2005-06, their budget efforts provided additional property tax relief for Hoosier homeowners, resulting in an average net property tax rate that actually dropped by 1.1 percent in 2006. 

Although House Republicans were able to win $200 million in property tax relief, the Democrat plan to return the $200 million to Hoosier property owners is fatally flawed.  Under this plan, Hoosiers would first pay their exorbitant property tax bill and then wait at least six months to receive a rebate in the mail.  That check would first be sent to a county auditor and will be subject to other administrative red tape before reaching the property owner.  This has been called the worst property tax public policy ever.

House Republicans were committed to putting Hoosier taxpayers first.  They made immediate property tax relief their number one priority in the 2007 legislative session.  Through their efforts, other legislative leaders agreed to devote additional resources to the budget for property tax relief.  However, the plan benefits elected officials, not taxpayers and the amount provided still leaves significantly high increases to this year’s property tax bills.  For this reason, all 49 House Republicans voted against the budget bill and will continue the fight for greater immediate property tax relief and a more comprehensive long-term property tax reform for the future.  

House Republican Successes

At the onset of the 2007 legislative session, House Republicans made a series of pledges to share a vision of economic growth, fiscal responsibility, stronger education, and protecting Hoosier families. Even as the minority party, House Republicans were able to pass a number of initiatives that work to accelerate Indiana’s progress.
                                                                             
Education Reform—House Republicans and Governor Daniels have led the charge on implementing full-day kindergarten across the state. The program will be phased in over a four-year period. SEA 192 will provide a safe learning environment by requiring schools to complete more safety drills and include staff training for manmade disasters, including shootings and hostage situations.

Job Creation—In order to expand and attract high-tech businesses in Indiana, HEA 1461 exempts income derived from licensing or commercialization of patented technology for businesses of 500 employees or fewer during a 10-year “startup” phase. SEA 536 establishes the Accelerated Growth Grant and Loan Program to provide incentives for high growth businesses that provide high skilled jobs to locate or expand in Indiana.

Crime Crackdown—SEA 520 will create the Meth Manufacturing Sites Registry, a web database listing properties that have been sites of methamphetamine laboratories. SEA 403, the Identity Theft Protection Plan, protects Hoosier credit reports by allowing consumers to freeze their credit files, preventing outside access to their credit reports.

Health Care—The Healthy Indiana Plan is a market-based, consumer driven health care plan for low income, uninsured Hoosiers. The plan will be funded by a 44 cent cigarette tax increase and is the first step in providing ample health care coverage for the uninsured.

Veteran and Military Benefits—HEA 1546 protects military discharge records from being available to the public. SEA 480 expands the high school diploma program to include veterans of the Korean and Vietnam conflicts. HEA 1092 establishes an unpaid leave of absence for the spouse or parent of a person ordered to involuntary active duty for deployment overseas.

Legislative Reform—SEA 401 reforms the legislator health care program and eliminates the $4 to $1 pension match. Now all legislator benefits are virtually identical to other state employees.

Renewable Energy—HEA 1486 provides an opportunity for the legislature to be on the forefront in energy conservation by requiring a complete energy audit of all state-operated facilities, ensuring that they are energy efficient. HEA 1281 requires governmental bodies and state educational institutions in Indiana to purchase biobased products as long as they are reasonably available, comparably priced, and comparable in performance.