Friend Report This is the first column of 2010, and I wish each of you a happy new year. I ended the last session by writing about a conversation with the family dog, Buddy. The essence of that conversation was the difficult economic times that the state finds itself in. Revenues for the new fiscal year are way down. Since July 1, 2009, the state is $500 million short of projections. That means the state budget must be cut in order to meet the income received. Indiana cannot operate in a deficit or on borrowed money. It must simply cut programs, agencies and finally education in order to stay in the black. Management of tight revenues is not easy, but the administration is doing its best in a difficult situation. After listening to me describe these problems all summer and fall, Buddy seems to understand me much better. He doesn't seem to beg for more treats and is satisfied with a more Spartan lifestyle. I have explained to him that each of us needs to be more conservative in our expectations. He seems to love and respect me despite the cutbacks. A dog's understanding of the situation at hand is a lesson we humans should take to heart! Switching gears to the 2010 legislative session, the legislature took up, on its own accord, the issue of ethics reform procedures first. Our state's largest newspaper has made an issue of gifts to legislators. Their premise is that the lobbyists can unduly influence policy or gain access to elected officials by giving gifts, tickets and dinners to the elected officials. Do they have a point? I'm sure there are abuses of the system, but the reality is this: the legislature is a relationship business. Ultimately, everyone who contacts a legislator is a lobbyist. Whether by phone call, e-mail, lunch or dinner, a conversation to influence legislation or issue is lobbying. To think that a lunch, dinner or ticket to a game can buy a vote is in my mind a stretch and I do not believe that it occurs. There is always room for improvement in our system. Adjustments are expected and should occur. What is not reasonable is for our state's largest newspaper to indict the entire legislative process for wrongdoing when we have more important issues before us. Jobs, taxes and education deserve much more ink than this contrived ethics issue. The citizens of Indiana have more insight when it comes to deciding the ethics of the legislature. Finally, House Joint Resolution 1, the constitutional amendment to cap property taxes, passed out of the Indiana House by a vote of 75-23 this week. As you will recall, under the constitutional amendment proposal, homeowner's property taxes will be capped at 1 percent of assessed value, rental and agricultural property at 2 percent and business property at 3 percent. The measure now moves to the Senate where it is expected that they will act quickly to pass HJR1. If this occurs, voters will have the opportunity in the November 2010 election to voice their opinion on whether or not property tax caps should be added to our state constitution. The last variable to the property tax system is the assessment process. Limitations on increases in assessed values need to be examined. There are examples of triple digit increases in assessed value that do not make sense. A cap on assessed value increases is a sensible discussion that must be had and I believe we can address this issue through statute. I think the caps will pass the legislature and then we deal with the results. Local governments and agriculture must look for adjustments to help their situations. Buddy doesn't understand taxes, but he knows his dog dish. I can fill the dog dish, and I promise to continue to work on the property tax issue for all of us! More later, Bill Friend -30- Visit us online at www.in.gov/legislative |
