Bill passes Senate for
further debate
By Matt Poston
City Editor
The state Senate version of a bill that would make
sweeping changes to Indiana's tax system as well as attempting to plug
a projected $1 billion hole was passed last week, but the implications
of the bill as it relates to Purdue's budget still remain unclear.
House Bill 1004 was passed by state senators by
a 33-15 vote. The bill had undergone several major revisions since it
was passed by the bare minimum of votes in the House last month.
The bill is expected to be debated by a House-Senate
conference committee over the next two weeks in an attempt to hammer
out a bill that both Republicans and Democrats could agree upon.
State Sen. Ronnie Alting, R-Lafayette, said that
the plan, which was created by Sen. Lawrence Borst, R-Greenwood, would
provide property owners with the largest property tax decrease in the
history of the Indiana General Assembly, with an approximately 30 percent
reduction from last year's property tax levels.
The plan would increase sales, cigarette and income
taxes to help fund the reduction in property taxes.
Alting said he voted "yes" to the bill because
he felt there was no other option.
"To have done nothing on (House Bill) 1004 would
have been devastating," Alting said.
"I think we're elected to go down there to solve
problems," he said.
Alting said that passing the bill allowed legislators
to continue budget discussions so they could find ways to avoid cutting
the education budget.
The bill also helps stimulate economic growth by
reducing the inventory tax, which would help small and large businesses
alike, said Alting.
Many out-of-state businesses aren't coming to Indiana
until the state restructures its tax system, Alting said. He also said
it might become increasingly difficult to keep businesses in the state
if restructuring isn't completed.
Though the bill seems to resolve many issues facing
state legislators during this session of the General Assembly, Alting
said there were three issues he'd like to see included in the bill:
flexible boarding for riverboat casinos, pull tabs and a gambling license
for French Lick, Ind.
Alting said those additions would provide additional
funding for the state and would not only prevent cuts in education spending,
but possibly create a surplus in the state's budget.
Terry Strueh, vice president of state relations
for Purdue University, said it was still too early in the legislative
process to say what kind of impact the plan is going to have on any
possible reductions in state spending as it relates to Purdue.
"It's a step in the right direction," Strueh said.
But Strueh said that while the bill does much to
solve long-term problems, it could use more solutions to short-term
problems, like Purdue's biennium budget.
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