Budget compromise lets Pence declare victory
Gov. Mike Pence declared victory for his long-sought tax cut, and Republican legislative leaders continued to tout their fiscal responsibility in a compromise on the two-year, $30 billion state budget.
The budget increased spending on education and roads and includes $350 million in new tax cuts. The inheritance tax will be repealed, retroactive to Jan. 1, and the personal income tax is set to fall 5 percent, from 3.4 percent to 3.23 percent, by Jan. 1, 2017.
The income-tax cut is half of what Pence lobbied for, and it won’t take effect until Jan. 1, 2015. House and Senate leaders hadn’t wanted to give the governor even that much, but his case was buoyed by the April revenue forecast, which predicted an increase of $290 million during the biennium.
Road builders were a big winner, as the budget pumps up state and local funds more than $400 million over the two years. The budget also provides new sources of transportation funding: 1 percent of state sales tax for current expenses and a new trust account, Major Moves 2020, which is to be used for future highway expansion.
Funding for K-12 education will increase $330 million over the biennium—2 percent in the first year and 1 percent in the second.
Indianapolis Motor Speedway lands $100 million subsidy
The General Assembly gave the Indianapolis Motor Speedway a $100 million financial package to help pay for improvements at the local landmark.
Due to changes to the original House bill, the $5 million the state will give annually for 20 years to the IMS is considered a loan. The Speedway is required to pay $2 million a year, allowing for $7 million annually for bond payments, with the bonds handled by the Indiana Finance Authority.
The money, Speedway spokesman Doug Boles said, will pay for improved seating, video boards and lights at the 16th Street and Georgetown Road facility. Speedway CEO Jeff Belskus said the improvements should help IMS officials draw more events to the track.
State lawmakers said the loan will be repaid through the growth in sales and income taxes at the track and merchandise and food booths adjacent to the track. A ticket tax, which expires after 20 years, will also be imposed.
Casinos get some help
A bill designed to aid casinos in the face of neighboring-state competition met strong resistance from House Republican leaders and Pence, who didn’t want to see gambling expanded.
The General Assembly gave the Indianapolis Motor Speedway a $100 million financial package to help pay for improvements at the local landmark.
Due to changes to the original House bill, the $5 million the state will give annually for 20 years to the IMS is considered a loan. The Speedway is required to pay $2 million a year, allowing for $7 million annually for bond payments, with the bonds handled by the Indiana Finance Authority.
The money, Speedway spokesman Doug Boles said, will pay for improved seating, video boards and lights at the 16th Street and Georgetown Road facility. Speedway CEO Jeff Belskus said the improvements should help IMS officials draw more events to the track.
State lawmakers said the loan will be repaid through the growth in sales and income taxes at the track and merchandise and food booths adjacent to the track. A ticket tax, which expires after 20 years, will also be imposed.
Casinos get some help
A bill designed to aid casinos in the face of neighboring-state competition met strong resistance from House Republican leaders and Pence, who didn’t want to see gambling expanded.
Provisions allowing central Indiana’s two racetrack-casinos to introduce live table games and riverboats to move onto land were stripped from the bill, as were significant tax breaks.
A late compromise will allow casinos to deduct free-play coupons from taxable revenue, though the amount is limited to $2.5 million this year and $5 million in the next three fiscal years.
The smallest riverboat-casinos, in terms of annual revenue, will see their tax rate drop from 15 percent to 5 percent. Casinos and racinos will also be allowed to seek Indiana Gaming Commission approval for mobile devices, to be used on the casino floor or at off-track-betting facilities.
Mass transit meets an early end
Marion County’s Republican senators sent mass-transit legislation on a study-committee detour after it had easily passed the House.
A late compromise will allow casinos to deduct free-play coupons from taxable revenue, though the amount is limited to $2.5 million this year and $5 million in the next three fiscal years.
The smallest riverboat-casinos, in terms of annual revenue, will see their tax rate drop from 15 percent to 5 percent. Casinos and racinos will also be allowed to seek Indiana Gaming Commission approval for mobile devices, to be used on the casino floor or at off-track-betting facilities.
Mass transit meets an early end
Marion County’s Republican senators sent mass-transit legislation on a study-committee detour after it had easily passed the House.
A 2014 referendum is still possible, if a transit bill is introduced and passes next year. First, the concept will come under scrutiny by a 12-member study committee, which is expected to work until Dec. 15 and look at everything from funding sources to ridership to light-rail feasibility.
Lawmakers unite behind economic-development transparency
In a rare moment of bipartisanship, the House and Senate in March voted nearly unanimously to require the Indiana Economic Development Corp. to disclose incentive agreements and actual results—how many jobs companies created, not just how many they promised to create.
The bill calls for incentive deals between the state and companies to be available for inspection and copying once they are reached. The bill also requires annual performance reports on all incentive deals offered since 2005, including actual jobs created.
Important details the bill does not appear to require are disclosure of average wages of jobs created or individual company performance.
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