My C.I.B. Solution
Okay, everybody and his mom has offered up possible solutions to solve the Capital Improvement Board’s operational shortfall so it’s only fitting that Indiana Barrister (IB) gets into the act as well. And like any good comedian, I have no problem stealing ideas from others and improving on them.
- Increase the downtown sports district to include Circle Center Mall, as well as the Westin and Marriott which are adjacent to the convention center. This could easily generate up to $12 million in annual revenue. Now I understand out-state lawmakers are not crazy about giving up that sales tax revenue, even though it would not exist but for the convention center and downtown Indianapolis, I think as the new hotel is brought on-line and the convention center expands, the state’s contribution can be phased out and the new revenue replace it. If that is not an option, the state could withhold an equal amount of assistance to local governments.
- Refinance some of the CIB debt obligation. Republican Jeff Espich is proposing that. Some estimates say there could be up to $26 million in savings.
- Ask the Colts and Pacers for a total of $15 million in contributions. Don’t mess around with $10 million, ask for $15 million. If they say no, I would say fine and make their lives in Indianapolis as difficult as legally possible.
- I would increase the ticket tax to 15 percent. I would not raise the hotel or car rental taxes. Since it is the events that draw the crowds, the users should pay for them. And for people who think this is a real hardship, I would probably offer a tax rebate when filed with income taxes, but users would have to itemize.
- I would also allow Marion County, as well as every county to keep every dime if the County Option Income Tax it levies. I have never been a big fan of allowing revenue from one county to go to another county. My Illinois income taxes do not come to Indiana and vice-versa. Since there is this aversion to anyone outside of Indianapolis paying for anything in the city, I am sure out-state Hoosiers would not want to engage in hypocrisy by taking money earned in Marion County.
- Continue with the $10 million in budget cuts at the C.I.B. but I would increase the marketing budget by $5 million. You can’t get conventions here if you don’t promote the city.
By my rough estimate, my plan easily generates the money needed to cover the C.I.B. and then some. And this is done with keeping the tax increases down to a minimum and put solely on the people who use the facility. I welcome your thoughts as always.
