Articles
Governor Daniels' Weekly Update: 8/7/08
Weekly Wrap-up
A look at news and events in the Daniels Administration
Volume 2, Issue 92
July 28 - August 5, 2008
Governor announces taxpayer protection agenda
August 5, 2008- Building on the state's three straight years of balanced budgets, Governor Mitch Daniels has proposed two major steps to further strengthen Indiana's protection of taxpayers.
First, the governor called for final legislative passage of a constitutional amendment to make permanent the caps on property taxes contained in the landmark tax cut bill approved during the 2008 session of the Indiana General Assembly. Second, the governor proposed sending taxpayers a refund in the years when state revenues exceed those necessary for a balanced budget and rainy day reserves.
The governor's property tax package, HEA 1001, received overwhelming bipartisan support (119-27). Among its provisions, it limits property taxes to 1 percent of the value of a home, 2 percent of agriculture land or rental property, and 3 percent of any other business beginning in 2010 (phased in starting next year). Daniels said achieving permanent property tax protections for homeowners and other taxpayers would be his top priority for the 2009 legislative session.
Homeowners all over the state are beginning to reap the benefits of the governor's property tax plan. So far, the average property tax reduction is about 38 percent compared to 2007 taxes.
A constitutional amendment must be approved by two separate sessions of the General Assembly before it can go to a popular vote. If legislators approve SJR1 again during the 2009 session, Indiana voters would have the opportunity to consider the caps in the November 2010 general election.
"We've taken the first of what must be three steps to make the caps permanent and constitutional. The legislature has voted once to submit this to a referendum of the people. A second vote under our law must occur, and then you the people get a chance to vote," said Daniels, during a luncheon speech before members of the Rotary Club of Indianapolis. "I'm very confident that if the people of Indiana get that chance, they are going to vote to lock in these caps and this unique-in-America protection. We have to make sure that that vote happens, and that it comes soon."
The second proposal, the Automatic Taxpayer Refund, would ensure that any tax revenues beyond those needed to maintain a balanced budget and adequate rainy day reserves be sent back to taxpayers in the form of a refund.
In years when state revenues are above an agreed level needed for fiscal sufficiency (for example, 10 percent of the next budget), the surplus amount would be returned to taxpayers on a per capita basis in the form of a credit on their next income tax filing. The state auditor would be responsible for certifying that the amount of total financial reserves, which consist of the General Fund, Rainy Day Fund, Medicaid reserve and School Rainy Day Fund are above the agreed level.
"The state would collect only what it needs to provide essential services, to protect itself against a downturn and to have an adequate reserve. Above that, the money stays with the taxpayer to be spent on family needs and to be reinvested in a growing economy," said Daniels.
The plan would require the approval of the General Assembly.
Indiana receives $10 million in first installment of disaster assistance from federal government
August 5, 2008- Governor Mitch Daniels was notified last week that Indiana will immediately receive $10 million in disaster assistance funding from the federal government for the state's long-term recovery efforts from recent severe storms and flooding.
The emergency funding is provided through the U.S. Housing and Urban Development's (HUD) Community Development Block Grant (CDBG) Program and represents a portion of the supplemental funding Congress appropriated in July for emergency disaster assistance in the Midwestern states affected by recent storms. The grant funding will be administered by the Indiana Office of Community and Rural Affairs (OCRA). A detailed grant program will be outlined by OCRA and will focus on projects that aid in housing and infrastructure recovery and rehabilitation.
The $10 million amount is based on a HUD formula that factors in preliminary estimates of housing, business and infrastructure loss in Indiana. Additional funding may be allocated as more detailed data becomes available. HUD will allocate an additional $200 million to affected states when it completes a more thorough study of each state's needs.
The HUD release can be located here.
Governor visits 4-H members at county fairs
Aug. 3, 2008- Governor Daniels visited three more 4-H fairs last week as he made stops in Brown, Lake and Morgan counties.
The governor visited Martinsville on Wednesday where he checked out exhibits and ate lunch with Morgan County 4-H ambassadors. Governor Daniels watched the livestock beef show with Fair Queen Brittany Winchester and Miss Congeniality Jessica Haggard before enjoying a bowl of ice cream at the Morgantown Fire Department booth.
The governor's next stop was in Nashville at the Brown County Fair. While there, he enjoyed a tour of the livestock exhibits and visited with local residents and fairgoers.
On Sunday, Governor Daniels stopped in northwest Indiana to visit the Lake County Fair in Crown Point. The governor toured the livestock barns and sampled some sweet corn with a group of young 4-H members.
Finish Line expands Indianapolis operations, adds 180 jobs
July 30, 2008- Mall-based retailer Finish Line, Inc., announced its plans to expand its operations in Indianapolis, including adding more than 180 new jobs over the next five years.
The Indianapolis-headquartered company, which operates nearly 700 Finish Line and 100 Man Alive stores across the country, plans to invest more than $34 million which includes the expansion of its approximate 800,000 square-foot national distribution center and corporate headquarters located on Indianapolis' east side.
"The Finish Line joins a growing list of companies like Telamon, Author Solutions and White Lodging that have decided to grow their headquarters in Indiana. Headquarters locations, with the high-paying jobs and community commitment they bring, are the best news an economy can get," said Governor Mitch Daniels.
The company, which employs more than 670 associates at its Indianapolis headquarters and distribution center and approximately 13,000 associates across the country, will hire corporate headquarters and distribution associates as the company expands its facilities over the five-year period.
"This expansion will support our continued growth in the United States," said Alan Cohen, chief executive officer of Finish Line. "Finish Line is a home-grown Indiana company, and we are committed to Indianapolis and being an important part of the eastside community."
Motorcycle race team, parts maker to expand its Indiana operations, adds 26 jobs
July 31, 2008 - Lt. Governor Becky Skillman joined executives from motorcycle racer and parts manufacturer Vance and Hines Motorsports Inc. to announce the company's plans to expand its operations in Brownsburg, creating 26 new jobs by 2011.
The company, which manufactures motorcycle engines and exhaust components for street bikes and professional racers, will invest more than $4 million to build and equip a 66,000-square-foot exhaust systems manufacturing facility adjacent to its current race shop in the suburban Indianapolis town that National Dragster Weekly magazine called the 'Drag Racing Capital of the World'.
"Motorsports has a rich history and a bright future in Indiana," said Skillman. "We'll continue to encourage motorsports companies from across the country and around the globe to locate and expand here as we build Indiana's reputation as the motorsports capital of the world."
Vance and Hines, which currently employs nearly 40 workers at its Brownsburg facility, plans to begin hiring additional machine operators, welders and customer support personnel in the fall to prepare for the scheduled opening of the new facility in December. The company has hired Indianapolis-based Lauth to construct the new facility.
"Indiana is an ideal manufacturing base for our company. Competitive developments costs, low overhead and a skilled worker pool will allow us to succeed in the future," said Byron Hines, co founder of Vance and Hines Motorsports Inc. "We look forward to developing and manufacturing more aftermarket high-performance motorcycle products for the worldwide market and would like to thank the state, Hendricks County and Brownsburg for their assistance in our expansion."
IN THE NEWS
Daniels' tax refund plan finds favor with local political officials
The Muncie Star-Press
August 6, 2008
By Rick Yencer
MUNCIE -- An automatic income tax refund proposed by Gov. Mitch Daniels, facing re-election from Democratic challenger Jill Long Thompson, found bipartisan support on Tuesday.
"If there is a way to give money back to the taxpayers, I am all for it," said State Rep. Dennis Tyler, D-Muncie.
His challenger in House District 34, Republican Ted Baker, agreed.
"I am firmly in favor of that," said Baker, a local businessman. "It is the people's money anyway."
Chris Hiatt, who leads the local repeal property taxes group, said the income refund was not a bad idea.
"Any incentive for government to sharpen its pencil and meet a real budget is a good idea," he said.
Daniels, during a speech at the Indianapolis Rotary Club, proposed that any tax revenue beyond those needed to maintain a balanced budget and adequate Rainy Day reserves, would be refunded to taxpayers.
Any surplus amount would be returned to taxpayers on a per-capita basis in the form of a credit on their next income tax filing. The initiative would require legislative approval.
Tyler, member of the House Ways and Means Committee, said House Democrats offered a similar plan last session using budget surpluses for the property tax relief.
Tyler and Baker agreed that the economy and jobs would outweigh taxes in the upcoming Nov. 4 with all 100 House members on Indiana ballots.
Lawmakers and Daniels just passed an historic property tax package last spring that put caps on property taxes for homes, farm and rental properties and businesses, beginning in 2010, with other tax relief for homeowners and others next year.
Long Thompson, a former congresswoman, was glad Daniels finally responded to her calls for tax relief.
"Unfortunately, the governor's rhetoric does not match reality," said Long Thompson, in a press release. "With his plan, Hoosiers won't get getting a debate this year."
Long Thompson pointed out that the state's surplus and balanced budget that Daniels touts was built on the backs of working people, as a result of tax increases on property, cigarette, sales and local income taxes that Daniels supported.
The state sales tax just went up to 7s percent last spring to help pay for the tax relief package.
Daniels pitches state tax refunds in boon years
The Northwest Indiana Times
August 05, 2008
By Patrick Guinane
INDIANAPOLIS | Gov. Mitch Daniels pitched legislation Tuesday that would trigger income tax refunds for Hoosiers in boon state budget years.
The Republican governor described his re-election initiative as a taxpayer safeguard designed to steer future state surpluses out of the hands of spendthrift legislators.
"Better the money stay in your pocket than burn a hole through theirs," Daniels told a luncheon crowd of roughly 200 Rotary Club of Indianapolis members.
The proposal would set up a system through which any annual state surplus automatically would be returned to income taxpayers the following spring -- but only if state government already has ample cash reserves. If the plan had been in place earlier this year, Daniels said, taxpayers could have received refunds of less than $100.
The governor, who is seeking a second term this November against Democrat Jill Long Thompson, has taken great pride in balancing the state budget and building $1.3 billion in reserves. He suggested Indiana would need to have at least that much in the bank to trigger the annual rebates he is proposing.
The governor repeatedly used legislators as a foil during his speech, likening them to teens plied with booze and car keys or a lottery winner who ran through half his winnings on "liquor and lose women" and "wasted the rest." Daniels later said he was referring to hypothetical fiscal shenanigans by future lawmakers and did not intend to impugn current legislators, who this spring overwhelmingly approved what the governor has called "Indiana's biggest tax cut ever."
Daniels also asked the rotarians to help him publicly pressure the General Assembly to finalize property tax caps included in the recent tax overhaul. The Legislature must take a second vote by 2010 in order to move the measure to a ballot referendum that would allow Hoosiers to write the tax caps into the Indiana Constitution.
'Indiana going green for better energy efficiency'
The Gary Post-Tribune
July 28, 2008
By Gitte Laasby
When the new Portage beach officially opens on Oct. 16, visitors will be greeted by an unusual sight: A pavilion with a green roof.
It's a symbol that the pavilion lives up to some of the nation's highest standards for energy efficiency. And many state buildings are expected to follow in its green footsteps in the coming years.
Gov. Mitch Daniels signed an executive order June 24 that requires all new state buildings, including public universities, to obtain a similar standard. That means they have to be designed, constructed, operated and maintained to achieve maximum energy efficiency - as long as it is cost effective over the life of the building.
"We plan to have a green roof. It acts in several ways. It will catch and capture runoff, and reduce heat impact on a synthetic roof in no shade," said Garry Traynham, deputy superintendent of Indiana Dunes National Lakeshore. "The building will have geothermal heating. That will certainly reduce the overall cost of energy consumption as well as reducing carbon footprint."
The "green" building at Portage beach will be surrounded by native plantings. Copper and steel left over from construction will be recycled rather than sent to a landfill, said project manager Victor Landfair.
"This is a great project because the whole intent of this park project is to have minimal impact on the existing environment. When we build the roads, we only build on the minimal area," said Landfair, who works for the Skillman Corp. "We're using natural stormwater quality design features so the runoff from the parking lot goes into the bioswales. They have a natural ability to filter out the hydrocarbons and the bad things that come off of cars and asphalt so it doesn't go into our drinking water."
The pavilion will attain at least a silver Leadership in Energy and Environmental Design (LEED) standard. To obtain the certification, the building is evaluated on its sustainable site development, water savings, energy efficiency, material selection and indoor environmental quality. The silver standard is required for new National Park Service buildings like the one in Portage, but was recently mandated for state buildings, too.
"State government should set an example through efforts to increase the cost-effectiveness of government and its efficient use of resources," Daniels said in his executive order.
Northwest Indiana only has two LEED certified, or "green" buildings on the U.S. Green Building Council's list.
The Centennial Park clubhouse in Munster is the other one. It's built on a former landfill site and self-sufficient in terms of power.
This spring, the U.S. Environmental Protection Agency awarded Energy Star status to the Courtyard and Fairfield in Merrillville. Indiana has seven buildings on that list compared to 19 in downtown Chicago and 34 in Michigan.
Dave Sommer, district manager for Trane Indiana, said the governor's order is a step in the right direction, but should be expanded to existing buildings, which use more energy.
"My issue with it is, most of the energy consumption is in older buildings. A lot of impact can be made in using older infrastructure," he said.
Existing buildings account for 40 percent of U.S. energy consumption, according to the USGBC, but rising utility bills and concerns about greenhouse gas emissions from houses are spurring an interest in green building with consumers. Many businesses are already investing in energy-efficiency.
Sommer's company conducts energy audits to find out how businesses and schools can be more energy efficient. Savings are typically in 20-30 percent. The job sometimes starts with stating the obvious.
"The biggest impact on energy efficiency is turning something off," said Sommer, who also recommends more comprehensive upgrades. "Some of the more obvious ones are lighting retrofits, insulation upgrades, heating and air conditioning."
Heating and air conditioning uses 25 percent of U.S. energy consumption, but as much as 50 percent in a commercial building, he said.
Installing more energy-efficient equipment requires a bigger investment up front, but usually pays for itself in two to 12 years. For businesses, it makes good financial sense, he said.
"The return on investment is there, with or without incentive," Sommer said. "Energy efficient building incentives cost as little as 1 (percent) or 2 percent up front, yet can save millions over the life of the system."
'4-H'ers talk horse, sheep and goat sense with governor at fair'
The Gary Post-Tribune
August 4, 2008
By Carrie Napoleon
4-H members and their families enthusiastically welcomed Gov. Mitch Daniels to the Lake County Fair on Sunday.
Daniels posed for pictures with exhibitors, signed autographs, including a couple casts, and even stopped for snapshots with a baby when he arrived at the Goat and Poultry Barn in time for judging Sunday morning.
The governor then toured the 4-H exhibits guided by 4-H members Karen Kukla, 13, and Lauren Berger, 14, both of Crown Point. Their first stop after the goat judging, the beef show, where the showmanship competition was under way.
"He handed out the championship ribbon," Kukla said. "He was really nice, he took time and talked to everyone."
The Lake County Fair is one of 12 county fairs the governor has had the chance to visit this year.
"It's way up on my top 10 list of things to do," Daniels said. "Not only is it the best tradition, you get to see the value of the 4-H program in the lives of these people," he continued.
Nine-year-old Josephine Gianni of Crown Point had a little chat with the governor as he met with the 4-H members. The youngster had one arm in a cast and the other bandages after a fall from her pony.
"He asked me about my arms. He hoped I get better," she said.
Patrick Kvachkoff, 15, of Crown Point, talked fair with the governor about the fair including where to find exhibits like the 75-pound rat. "It was nice of him to come down here to our show," Kvachkoff said.
His younger brother Thomas, 10, also had to chance to talk with Daniels. "We talked about horses and goats and sheep and pigs," Thomas said. "I really liked it. It was really exciting."
Their sister Caroline, 12, said she studied about the governor in school last year so it was especially interesting to meet him. "I was excited. It think he's a pretty cool guy."
'Flooded residents find hope amidst frustration'
The Martinsville Reporter-Times
July 30, 2008
By Ronald Hawkins
Stories of frustration and new hope were told Tuesday during a gathering of Morgan County residents seeking assistance with their June 7-related flooding problems.
Forms for assistance from the Morgan County Long Term Recovery Committee, the Federal Emergency Management Agency, the Small Business Administration and state Homeland Security were available at the early evening meeting in the Morgan County Administration Building.
"We can help you, but only if you let us know," said Jennifer Blankenship, chairwoman of the county long term recovery group.
Lannie Stecher, pastor of New Beginnings Family Church, said the county recovery group has a warehouse filled with furniture for people who lost their furnishings in the flood. Refrigerators and washers will be arriving soon.
The county recovery committee will be opening an office Monday at 118 E. Morgan St. in Martinsville. It will be open from 9 a.m. until noon and 1 p.m. to 5 p.m. Monday through Friday or by appointment.
News such as that provided by the recovery team was welcomed by residents such as Richie and Shasta Dow, whose home was at 3410 E. Mahalasville Road.
The Dows had flood insurance that was to be paid out of their mortgage payments, but a new company took over the mortgage. That company informed the Dows that they were no longer in a flood plain and it didn't make flood insurance payments to the insurance agency, the Dows said.
The insurance agency canceled the policy citing non-payment as the reason.
"We knew we were in a flood plain," Shasta Dow said.
When the flood struck, it wiped out personal and business property they owned, they said. That included a fifth wheel construction vehicle valued at $62,000 used in their construction business.
After tears and prayers following the Tuesday meeting, the Dows were smiling.
Their home is among the properties that the county will buy, Shasta Dow said.
"The county, FEMA and Homeland Security have been wonderful," she said. "Gov. (Mitch) Daniels has been a godsend."
