Committee meetings are in full swing now, and the focus of the session remains on the new biennial budget. The Ways and Means Committee is conducting budget hearings and listening to university presidents and department heads. Each presenter gives a full justification of the budget request they are making to the committee. The members must then consider the request and compare it to the revenues available before deciding on an entry in the proposed budget. The budget is simply a list of priorities allocating taxpayer dollars. We cannot address every issue in this budget, but when completed it will see the state through the next two years.
One of the major challenges facing the General Assembly is how to increase highway funding. The problem seems to grow faster each year as gasoline tax revenues decline and the ever-expanding highway inventory requires more expensive maintenance. Local governments are hit particularly hard as they try to maintain roads, streets and bridges.
Though it is a viable solution, no legislator wants to vote to increase the gas tax. Each penny added the gasoline tax raises a little over $30 million. That sounds like a lot of money, but spread over 92 counties, it disappears pretty quickly. Legislators are always seeking new and novel mechanisms to increase revenues for the highway system.
The agricultural industry is very concerned about the rapidly increasing property taxes on farmland. Taxes on farmland have gone up as much as 15 percent per year over the last several years. Land is assessed by a productivity formula, which is the result of research and cooperation by Purdue University and other economists. Essentially, taxes on land are to be based on the income that can be derived from farming or renting it each year. The formula is a six-year average of income with the highest income year removed. Several alternatives have been proposed and are under consideration. I will continue to report as the issue progresses.
One of the key agenda items we presented is under the umbrella of public safety. Our entire state is trying to address the issues of methamphetamine use and an influx of heroin into Indiana. One of the purposes of the criminal code rewrite was to produce better results for drug offenders than simple incarceration. Treatment programs through the community corrections operations in each county might be more effective in helping individuals get off drugs and become productive citizens. Again, the issue is before the Legislature and of course, funding is a big part of the solution. It is another issue I will continue to report on.
The issues of education and employment are always before us. There are efforts to link the two. Discussions on vocational education and matching courses to the needs of employers seem a wise path to follow. Employers claim that they have jobs available, but there are not enough qualified workers to fill positions. A collaborative effort makes sense to provide classes for students to prepare them for the workforce. The administration supports the concept, and I think the General Assembly should fully get behind the effort.
The January weather has moderated and the snow is melting away. It is a welcome reprieve from the sub-zero temperatures, and the highway workers should be happy that most of the snow is gone.
Just a closing observation; it is staying light later in the evening as the days get longer, which is a big reason to be happy.
More later,
Bill Friend
-30-
Rep. Bill Friend represents portions of Cass, Fulton and Miami counties. He also serves as Speaker Pro Tempore.
