STATEHOUSE (Feb. 25, 2009) - At halftime of the 2009 legislative session that ends April 29, Senate Republicans say lawmakers need to "get to work" to craft a two-year state budget that avoids raids on emergency funds and prevents new taxes on Hoosiers.
Senate President Pro Tem David Long (R-Fort Wayne) and GOP Senate leaders stood firm today on their legislative agenda that also includes "balancing the budget, permanently capping property taxes, reforming government, protecting education funding and creating jobs."
"Gridlock and games are not part of the reputation of the Indiana Senate," said Sen. Jim Merritt (R-Indianapolis), chair of the Senate Republican Caucus. "At the midway point, senators have considered 597 introduced bills and resolutions, heard 211 in committee, debated and passed 196 to the Indiana House of Representatives - 192, or 98 percent, passed with bipartisan majorities and 114, or 58 percent passed unanimously."
State Budget: Senate Republicans said two-year budgets require additional planning, but provide predictability for state agencies, and more important, to Indiana taxpayers.
"We're going into this with much more information on the federal stimulus funding, for example, than when our House counterparts began in early January," said Sen. Luke Kenley (R-Noblesville), chair of the Senate Committee on Appropriations. "Also, new state revenue forecasts will be available in April before lawmakers put finishing touches on the state budget. We're convinced a two-year budget is not only achievable, but advisable. Looking across the country, many of the same states facing financial hardships are those with short-term one-year budgets. Those in better shape are often the two-year budget states whose taxpayers expect more long-range planning and policymaking of lawmakers."
Kenley said the Senate will make every possible effort to safeguard funds intended for low-income healthcare and to avoid dipping into emergency "rainy day" cash reserves.
Property Tax Caps: GOP leaders said homeowners, farmers and business leaders deserve to know if lawmakers were serious last year about permanently capping property taxes by adding protections to the Indiana Constitution.
House and Senate members last year successfully passed an amendment capping property taxes, but must do so again in a separately elected Indiana General Assembly before being considered by voters and added to the Indiana Constitution. Senators earlier this year again passed the protections - the only caps in the U.S. known to also protect farmers and businesses. Senate Joint Resolution 1 is now before the House of Representatives, where the protections may not be considered this year.
"Legislators must not lose sight that our most recent property tax crisis forced many Hoosiers - especially seniors and young families - to face life-changing, often heart-wrenching decisions," said Sen. Brandt Hershman (R-Wheatfield), chair of the Senate Committee on Tax and Fiscal Policy. "Opponents complain more time is needed to study the effects tax caps will have on government. We believe our focus should center on taxpayers not those who spend tax dollars. Delay of the vote puts the wants of the politicians before the will of the people. Delay signals business as usual and a loss of momentum, willpower and commitment. Delay gives in to opponents' stall tactics, foot-dragging and potential political mischief. We need passage this year to tell the tax spenders and the politicians to cut costs and find new efficiencies, professionalize their operations and modernize their revenue streams like businesses and families all over this state are being forced to do. Passage of the tax caps entrusts with Indiana voters' control of the debate, giving more time for public discussion of local priorities, and puts in the hands of those most closely impacted the final decision-making in the matter - once and for all."
Government Reforms: Long and senate leaders said they will continue to work with local officials, taxpayer groups and House members on recommendations of the Kernan-Shepard Commission.
Amidst the property tax crisis of 2007, the bipartisan Kernan-Shepard Commission - comprised of business, education and civic leaders - was named to study improving local government's efficiency and effectiveness across Indiana. The commission's recommendations were well received by Indiana citizens and widely supported in independent, scientific opinion polls. In 2008, the Indiana General Assembly eliminated 965 of Indiana's 1008 township-level assessing officials and transferred their duties to the county level. Last fall, voters in 30 of the remaining 43 townships followed suit and chose to combine those assessing duties as well.
"So far this year, Senators have agreed to eliminate township boards and require township budgets be approved by county councils informed by comprehensive, uniform data," said Sen. Connie Lawson (R-Danville), Assistant Majority Floor Leader and chair of the Senate Committee on Local Government. "In addition, we've seen action on better coordinating library services, combining municipal and county elections, moving school board elections from partisan primary elections, and allowing counties to decide their own streamlining of executive, legislative and fiscal responsibilities."
Education: Promoting K-12 achievement, protecting education dollars and keeping college affordable and accessible are among the best long-term investments any state can make in difficult economic times, the GOP leaders said.
Chief among the state's many responsibilities is making certain Indiana's public schools, community colleges and four-year universities have "the appropriate policies and resources to help ensure the future success of our students," said Sen. Teresa Lubbers (R-Indianapolis), chair of the Senate Committee on Education and Career Development.
"Already, senators have advanced legislation increasing school accountability, allowing tax credits for low-income scholarships, ensuring better school purchasing and driving more dollars to the classroom, requiring national background checks for personnel and end-of-run bus inspections for students left behind, as well as qualified immunity to restore student discipline," Lubbers said.
Jobs & Unemployment: Senate Republicans committed to bolstering job creation through best uses of federal stimulus funds, workforce education, low taxes, elimination of excessive government regulations and incentivizing business expansion and investment.
Long renewed Senate Republicans' call for federal stimulus monies to be viewed by state leaders as one-time investments and spent on one-time investments that truly create jobs, but don't grow government or result in unsustainable spending or higher taxes. He said details come at good time - the midway point of session, but in time for state senators to consider the funding during budget deliberations.
GOP Senate fiscal leaders said they will continue to work with Gov. Mitch Daniels and Lt. Gov. Becky Skillman in identifying and prioritizing impactful, cost-efficient uses. They said they stand ready to do whatever is needed legislatively, so that shovel-ready capital projects can commence and Hoosiers can be put to work as soon as stimulus monies become available.
Long said Senate colleagues are fully prepared to "do the heavy lifting" needed to update Indiana's unemployment fund, but are "extremely disappointed in House leaders for not doing their part, especially given the economic conditions facing Hoosier workers and employers. This leaves to Senators the duties of writing and passing the state's two-year budget as well as re-working the unemployment trust fund in the coming weeks. But as I said, we will get the job done."
Energy: Senate Republican-led effort would "overhaul and modernize" Indiana's energy policy, rewarding Hoosiers who harness homegrown energy resources and create jobs.
Senate Republicans are committed to passing legislation that would encourage Hoosiers to harness homegrown renewable and clean sources of energy, increase Indiana's energy independence and create new economic development opportunities. This commitment is the driving force behind two bills proposed by Senate Republican leaders Hershman and Merritt and advanced to the House this week.
Hershman, former chair of the Senate Committee on Utilities and Technology committee, said a bill he authored would "overhaul and modernize" Indiana's energy policy through a combination of requirements and incentives for electricity suppliers to draw greater percentages of their total power generation from alternative sources of energy - including wind, solar, clean coal and smart grid demand reduction technologies. "Across Indiana, 75 percent of our energy expenditures currently leave the state in exchange for coal, natural gas and oil, costing Hoosiers untold amounts in terms of lost economic development opportunities and energy security," Hershman said. Passed out of the Senate Tuesday with strong bipartisan backing, SB 420 would also "synergize" Indiana's private sector by creating the Office Small Business Energy Advancement, which would serve as a hub of knowledge and resources enabling the state's small businesses to secure state and federal energy tax incentives.
Merritt, current chair of the Utilities and Technology committee, is championing a bill which would allow Indiana's energy suppliers to offer their customers the ability to generate their own power through "net-metering." When a customer generates their own energy through a net-metering facility, SB 300 would allow the utility to credit the customer's account when they generate a "net" surplus of electricity - saving Hoosiers precious dollars in these tight economic times, said Merritt. After passing the senate by a unanimous vote of 50-0 last week, the measure moves to the House for further consideration.
Audio Clip: Senator Luke Kenley
Audio Clip: Senator Brandt Hershman
Audio Clip: Senator Connie Lawson
Audio Clip: Senator Teresa Lubbers
Audio Clip: Senator Jim Merritt
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