Legislators try to allocate
money
By Heather Mangold
City Editor
Local legislative officials have different opinions
about the uses and direction of Indiana lottery money.
In 1989 the Build Indiana Fund was established.
It grouped riverboat gaming wagering tax, horse racing pari-mutuel wagering
tax, charity gaming, and license fees in an effort to establish extra
funds for specific projects in Indiana.
Rep. Sheila Klinker, D-27th, said she's been supportive
of the funds uses from the beginning.
"I was one of the few that was here when it passed,"
said Klinker.
The fund has helped with local projects
such as a parking garage in downtown Lafayette, an environmental cleanup
in the same area, Wabash Landing's parking garage and the Tapawingo
Park Riverside Ice Rink. More recently, Purdue received $5 million from
the fund for its new nanotechnology center.
In addition to local projects, the fund has dramatically
decreased the personal excise tax for Hoosiers.
"You used to have to pay three or four hundred
dollars for license plates," said Klinker. "Now it's been cut way back."
Klinker said when economic times were bad in 1991,
some of the Build Indiana funds were used for education. Klinker is
not, however, in favor of a constant use of these funds for that purpose.
"It's not an ongoing revenue," said Klinker. "It's
not to be used for something that's ongoing like education."
Klinker added that when Indiana's economy was facing
tough times in 1991, Indiana government used $89 million to boost education
and to increase police, fire and teacher pensions.
Rep. Sue Scholer, R-26th, said she is supportive
of the fund, but also somewhat weary.
"I'm uncomfortable, to some extent, with this business
of just allocating dollars to legislators and having them pick projects,"
said Scholer.
Scholer said in past years, government committees
worked with legislators to choose projects that seemed important and
qualified for the use of the funds. Then legislators would submit applications
for the projects they thought best deserved the money.
"I would have much preferred to stay with the old
process," said Scholer.
Scholer said she feels that the Build Indiana fund
is ever changing and that certain projects should seek other sources
of income.
"When we have to fund a lot of fire trucks out
of a fund like the Build Indiana Fund, we need to look at a way for
them to have a capital project fund," said Scholer. "They are always
going to be needing new equipment and we need to have an ongoing fund
for their needs."
Sen. Ron Alting, R-22nd, said appropriations from
the fund are subject to change every two years. In a press release,
Alting said for the budget year, which began July 1, expenditures from
the state's share of profits from all forms of legalized gambling are
expected to total $665.5 million. This year, said Alting, the largest
share of profits will cut the license plate tax, providing Hoosiers
with an additional $235 million.
The second largest recipient of the gambling profits
will be homeowners. This year, $200 million is dedicated to the Property
Tax Replacement Fund to bridge a revenue shortfall brought on by the
slow economy.
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