No New (Broad-based) Taxes
Although Governor Mitch Daniels and Indianapolis Mayor Greg Ballard won’t roll out a Capital Improvement Board funding shortfall solution until Thursday, reliable sources say the plan will not include any broad-based taxes; much to the dismay of the Mayor’s critics and political enemies.
Previous discussions had included using a food and beverage tax or increasing local or state alcohol taxes to help cover the $47 million shortfall. However both plans died quickly due to a lack of support in the legislature and an outcry by the public. And if the city captured all the revenue from non-Pacer events from Conseco it could capture between $7-9 million in revenue, offseting the $15 million operational costs of the facility.
“A broad-based tax is off the table and there are no plans to revisit it,” said a source close to the negotiations. “There is a light at the end of the tunnel and I don’t think it’s a train.” Officials do plan to move forward with increases the hotel-motel , car rental, and ticket taxes.
Sources say staff in the Mayor and the Governor’s Office are contiuing to look at efficiencies and other forms of “creative financing” to close the remaining funding gap, which at this point is less than $15 million. And as reported earlier, consolidating the operational functions of the Convention Center, Lucas Oil and Conseco Fieldhouse could also yield savings.
However, eventhough local officials are feeling good about the plan they are drafting, one potential complication is another revenue shortfall, as proceeds from CIB properties are down more than 8% due to the slowdown in the economy.
