[r23] Friend Report (3/23/2009)

Monday, March 23, 2009

Start Date: 3/23/2009 All Day
End Date: 3/23/2009

Spring arrived a few days ago, and most of us probably can agree that we are ready for the change to warmer weather. The NCAA basketball tournament is also in action, and there is very little agreement about its outcome.

 

These are two occurrences, with one in agreement and the other in discord. This example is not unlike many in the legislature as the session continues.

 

Discussion of the budget continues as the updated fiscal numbers come in. There isn't much excitement about any of the predictions - less revenue and more obligations.

 

The administration has been announcing budget cuts, hiring freezes and mandatory reversions with some regularity. It is to be commended for trying to deal with this extreme revenue shortfall.

 

But all of that doesn't make it any easier.

 

The Senate is working to produce a two-year budget that combines all three of the House budgets. I think it makes more sense to follow the practice of a two-year spending plan and rely on the short session to make the necessary adjustments. It has worked for many years, and I think it will be successful in this current situation.

 

Another major issue seeking a solution and agreement is the unemployment insurance (UI) fund. It should be no surprise to anyone that this fund has been forced to borrow millions from the federal government.

 

Without state adjustments to the fund, it is possible the federal government will assume control of Indiana's UI fund. This means the feds will make all the rules and decisions. I don't think that is a reasonable solution. Losing state control of this program presents many problems, not the least of which is the state being forced to comply with federal mandates and collections on one of its own funds.

 

The Senate has proposed a bill to address and update the program. This discussion demands a solution, and I am confident the legislature can agree on a final product.

 

I was very pleased that former Arkansas Gov. Mike Huckabee focused on Elkhart in one of his Fox News Channel talk shows. It was a positive program that highlighted the achievements and spirit of the community. The interviews focused on the many accomplishments of the people and how resilient they are.

 

For the most part, this area of Indiana has suffered some setbacks, but the people are determined to overcome their current situation. There are many entrepreneurs working to transition from the RV industry to other businesses. For example, some active Elkhart County pioneers are exploring the potential of alternative energy sources. The positive interaction of the national media can only help to hasten the comeback of this community. We can all learn some lessons from their tenacity.

 

Amending property tax caps into the state constitution continues to be held up in the House by the majority party. Discussions are ongoing to gain a greater understanding of the ramifications of this program.

 

Lots of misinformation is out there about what it all means and how it works. One thing is for certain: This idea offers some protection to all classes of property owners. It could be permanent if we are allowed to give it to the public for a referendum vote in 2010.

 

I will write more about this issue next week to explain why it makes sense and benefits property owners.

 

Thanks for the comments and the encouragement. I appreciate them, and they certainly are needed. It's your government; stay in touch. It's the only way we will find agreement on the important stuff.

 

 

 

More later,

 

Bill Friend