Legislators discuss options
to solve financial
problems
By Richard Payne
Staff
Writer
Lafayette-area state legislators met on Friday
at the Lafayette Urban Ministry to discuss their contentions with Indiana’s
worsening financial situation as well as possible remedies for the state’s
lack of revenue.
Rep. Sheila Klinker, D-27th, Rep. Sue Scholer,
R-26th, and Rep. Tim Brown, R-41st, attended the preview organized by
the director of social justice ministries for the Lafayette Urban Ministry,
Patti O’Callaghan. Also in attendance was Sen. Ron Alting, R-22nd.
Of the topics previewed, the most attention was
given to three important issues facing the state: tax restructuring,
property tax reassessment and the financial issues surrounding the state
budget.
"Increased state spending and tax breaks (have
caused the state) to spend more than we’ve taken in," said
Brown, explaining the current financial situation.
Alting compared the work that needs to be done
in the upcoming session to running a business. Each department needs
to be looked at and we need to see what cuts can be made, if any, said
Alting.
"We need to work together in a bipartisan
way," said Alting.
Different types of taxes were discussed as remedies
to the state’s current financial crisis as well.
One proposed tax is a higher cigarette tax.
"Several people stopped me (on Purdue’s
campus) and said ‘No cigarette tax’," said Klinker.
She then explained that without taxes on items
such as cigarettes, higher and secondary education would need to be
cut because a large portion of the money generated for the budget is
appropriated for education. Last week Gov. Frank O’Bannon proposed
a new spending plan for Indiana that suggested cigarette prices be raised
by 50 cents per pack. Scholer said cigarette tax revenues would be "earmarked"
for the healthcare portion of the budget.
Other tax options that were explored to generate
more money for the state-included gaming tax, such as on casino boats.
Controversy has surrounded the legalization of dockside gambling into
the state.
"If you don’t like it, don’t participate,"
said Scholer. "It has become a family-oriented industry."
Scholer said that dockside gambling is one of the
last industries to "really be hit" by an economic downturn
like the one the country is recently experiencing.
"Revenues from boats are down because of no
dockside (opportunities)," said Alting. "We need dockside
gambling before cutting education."
Alting said that he believes that dockside gambling
would enhance revenue immediately.
Brown introduced the idea of taxing labor on services,
such as the labor of putting a tire on a car.
"When changing a tire, there is a tax on the
tire, not the labor," said Brown.
Brown also emphasized the necessity to keep property
taxes down as legislators are currently faced with the possibility of
an increase in property taxes in order to generate additional revenue
for the state.
Legislators are aiming to recruit employees to
Indiana, and Brown said he felt as though raising property taxes would
make this effort strenuous.
"There is no incentive (to come to Indiana)
when taxes equal Illinois or Michigan," said Brown.
Cutting Medicaid is also another way that was discussed
to reduce spending within the state budget.
"We continually look at cutting Medicaid —
it’s unfortunate," said Alting.
Brown said that the state needs to solve its financial
problem and move forward.
"This is one of the most important sessions
in decades," said Alting.
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