Mitch Daniels Redux
Indiana Governor Mitch Daniels plans to present the budget to lawmakers on Tuesday, January 6. He sat down with us media folks Monday morning and answered some of our questions on the budget, education, government reform and other issues. Here’s a summary of portions of that conversation.
Biggest Accomplishment of 2008: Property tax reduction. It brought long overdue relief to homeowners and makes Indiana a better place for business to invest, but the caps need to be put in place to protect taxpayers from future legislatures; also, a balanced budget.
Indiana as an island of Growth: Indiana is in the black and surrounding states are in the red. Indiana was hit hard by the national downturn. Despite the increase in unemployment, Indiana will be one of the better positioned states. Indiana is a magnet for new investment, but unfortunately no one is investing. It’s like being the prettiest girl in school and prom gets canceled.
Scaling Back New Initiatives: The State may have to set aside plans to expand full day kindergarten since the money is not there. Other state initiatives may be postponed for a year as well.
Education Funding: Daniels says he plans to flat line education spending. He disagrees with the argument that flat lining spending amounts to a budget cut as inflation is practically non-existent. Daniels also said all educational institutions need to be more efficient as well. He says 40 cents of every K-12 dollar doesn’t make it to the classroom and a change of one percent to the classroom would result in up to $120 million in new funding.
Rainy Day Fund: The state should make every effort not to tap into its more than $1 billion budget surplus, because the national economy could still get worse and no one knows how long the recession will last. He says the preservation of the surplus, as well no tax increase or budget gimmicks, are his top priorities.
School Transportation: School districts could save money by pooling their transportation resources, particularly in counties with small school districts. He also said he’d support legislation that called for statewide purchasing of buses to save money.
Tax Cap Constitutionality: Daniels said he doesn’t worry about any immediate challenges to the property tax caps. He doubts courts would step in and hold the tax caps unconstitutional while lawmakers are in the process of putting them into the Indiana Constitution. He says a challenge would make more sense of lawmakers halted the process of putting the caps in the Constitution.
Unemployment Trust Fund: The economy has aggravated Indiana’s unemployment insurance shortfall because the state was giving out more in benefits than it was taking in revenue. He also says the system will have to be reformed, including having large employers with scheduled seasonal layoffs in down times picking up more of the burden from smaller employers whose workers are year-round.
Government Reform: Daniels says he would open to grandfathering in elected officials who also work for the municipalities which govern them, while banning the practice for future officials.
Redistricting: Daniels says he will veto any redistricting plan that comes out of the two party headquarters. He says districts should not look like inkblots on a Rorschach test.
The Next Four Years: Improve education. Make Indiana the top state for job investment. Finish the job of property tax reduction and government reform.
Delaying Passage of Tax Caps: Daniels says there’s no real reason for lawmakers to delay passing property tax caps and Kernan Shepard. He says while the budget is important, the house will have plenty of time to work on those issues while the Senate works on the budget.
Stadium Bailout: Although Lucas Oil Stadium could potentially run operating deficits in the millions, Daniels says the city should not expect a bailout from the State. The governor says he is open to helping local lawmakers find a way to cover those costs using local dollars, but a bailout from general state funds is out of the question.
Federal Bailout Dollars: Indiana should treat any bailout this money as a one-time deal don’t use it to delay putting off tough decisions down the road because the current budget forecasts show the state taking in less money in 2011 than 2009.
His Favorite Christmas Present: A white t-Shirt that given to him by his family that read, “I’m more honest than Rod.”
