This was another very busy weekend. Saturday morning I was in Nappanee for a Chamber meeting. It was very well attended and included a group of students from Northwood High School. The discussion centered on school funding and an explanation of why declining state revenues have led to a temporary reduction in school funding. Back in 2008, the Indiana General Assembly made the public policy decision to remove school operating costs from the local property tax rolls. While property taxes are the most stable form of revenue for government, it is also the one source of revenue that is least tied to a person's ability to pay the tax. For example, property taxes hit senior citizens very hard, yet for many seniors their income is fixed. So now school operating costs are funded by state revenues which are made up of sales taxes, income taxes, corporate income taxes and gaming revenues. While sales and income taxes are susceptible to the whims of the national economy, they better reflect an individual's ability to pay. The solution for restoring school funding is to get Hoosiers back to work. When Hoosiers are working, sales and income revenue increases and this will allow us to reprioritize state dollars back to our schools. I spoke to the students from Northwood and encouraged them to attend college. In order to compete in the 21st century marketplace, young people need to have a 4 year degree. I also suggested that internships are a wonderful way to learn real-world job skills. For example, the Indiana General Assembly provides college students internship opportunities every year during session. If there is one issue that must be resolved before we adjourn, it is the need for the delay of the unemployment insurance tax increase on employers. Last year, the General Assembly passed a bill that, if it goes into effect, will impose the largest single tax increase on employers in Indiana. No member of the House Republican caucus supported the tax increase on employers to begin with and our caucus has been calling for the delay of the unemployment insurance tax increase all session. The unemployment insurance tax increase would result in an increase for over 72,000 Hoosier businesses. It is my hope that we will be able to resolve this situation before the end of session. Everyone has been talking about Evan Bayh's decision to retire from the U.S. Senate. I respect his decision and do not question his motivation. His decision was based upon the problems in the U.S. Congress. The challenge for the General Assembly is that they do not emulate those of the U.S. Congress. This is your government, participate! More later, Bill Friend |
