Articles
Governor Daniels' Weekly Wrap-up: 01/23/08
Weekly Wrap-up
A look at news and events in the Daniels Administration
Volume 2, Issue 65
January 14-20, 2008
Governor delivers 2008 State of the State address
Jan. 15, 2008- During his fourth State of the State address, Governor Mitch Daniels focused primarily on his plan for property tax relief, challenging lawmakers to pass legislation to provide for fair, far-reaching and final property tax reduction to Hoosiers.
"We are called now to act once again, together, on a great thing that is wanted to be done: to bring lasting fairness and affordability to the taxation of property in our state," said Governor Daniels.
The governor also discussed the bipartisan approach needed to bring relief to property owners in Indiana .
"We have proven ourselves capable of great things," said Daniels. "The spirit that produced telecom reform, health care for the uninsured, and a second honestly-balanced budget must be brought to bear again...So be brave these next few weeks-great work is wanted to be done."
Read the governor's address. Watch a video of the governor's speech.
Governor attends MLK, Jr. celebrations
Jan. 17, 2008- Governor Daniels made welcoming remarks at the 17th Annual Indiana Statewide Martin Luther King, Jr. Holiday Celebration at the Indiana State Museum . The event, "A Legacy of Freedom: Remembering A King," commemorated the life and work of Dr. King.
The governor also joined Indianapolis community leaders to help serve breakfast at the 15th Annual Dr. Martin Luther King, Jr. Celebration of Peace Community Breakfast.
Daniels speaks before House committee
Jan. 16, 2008- For the first time in his term, Governor Daniels testified before the House Ways and Means Committee in support of his plan for property tax relief.
"I didn't do it lightly because I think it's a precedent that you don't want to lightly set. But this is a unique situation of special importance to taxpayers and therefore to me, so I decided to break with past practice and make this exception," said Daniels.
Watch the governor's testimony.
ECONOMIC DEVELOPMENT UPDATES
Tech company to add more than 100 new employees to its Indianapolis headquarters
Jan. 15, 2008- Fusion Alliance, a leading Midwest technology consulting firm headquartered in Indianapolis , announced it will expand its headquarters in Marion County , creating more than 110 new jobs by 2010.
The company, which specializes in the design and development of technology-driven business solutions, will invest more than $2 million to expand its headquarters operation and upgrade its hardware and software.
"Fusion Alliance joins a growing list of companies like Arcadia Healthcare, Really Cool Foods, SMC Corporation and Berry Plastics that have decided to grow their global 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.
Fusion Alliance , which employs more than 220 Information Technology Professionals at its offices in Indianapolis and Cincinnati , plans to begin hiring additional infrastructure consultants, application developers, web designers, business analysts and project managers in 2008.
Modular framing products supplier to grow in Whitley County
Jan. 18, 2008- Aluminum components provider 80/20 Inc. announced it will expand its manufacturing and distribution center in Columbia City , creating more than 40 new jobs by 2010.
The company, which designs and manufactures modular extruded aluminum framing for a variety of industrial applications, will invest more than $5 million to upgrade machining and manufacturing technology at its 135,000-square-foot facility.
"80/20 Inc. is a home-grown Hoosier company that is creating new opportunities in Northeast Indiana ," said Governor Daniels. "Small cities and towns like Columbia City , Bluffton and Markle continue to play a vital role in Indiana 's economic comeback."
Founded in 1989 in Fort Wayne, 80/20 Inc. has since moved its design, manufacturing and distribution center to a larger facility in Columbia City, where it employs 210 associates and plans to hire warehouse, customer service, accounting and shipping personnel later this year as part of the expansion.
Dow Corning to expand its northeast Indiana operations
Jan. 14, 2008- Silicon-based materials leader Dow Corning Corp. announced it will expand its manufacturing operations in Kendallville, creating more than 20 new jobs by 2010.
The global manufacturer and marketer of silicone compounds will invest more than $5 million to build and equip a 25,000 square-foot addition to its manufacturing operations that will grow the company's mixing and extruding capabilities at the site.
"More and more companies are recognizing that Indiana is a great place to do business, and we're glad Dow Corning selected Indiana for this expansion," said Gov. Daniels.
Governor's schedule for January 23-24
Wednesday, January 23
- Governor Mitch Daniels will join executives from an Indiana company for an economic development announcement.
10:30 a.m.
Mount Comfort Industrial Park
4202 North Awning Court
Greenfield
- The governor will discuss the state's economic climate at a Richmond Chamber of Commerce luncheon event.
12:30 p.m.
Forest Hills Country Club
2169 South 23rd Street
Richmond
- Governor Daniels will discuss his property tax plan and other current issues with area residents during a visit to the Goldfinch Restaurant.
3:15 p.m.
11161 U.S. Highway 52
Brookville
- The governor will give the keynote address at the Dearborn County Lincoln Day Dinner.
6 p.m.
Dearborn Country Club
170 Country Club Road
Aurora
Thursday, January 24
- Governor Daniels will participate in a question and answer session with students and faculty members at Hanover College .
10 a.m.
Lynn Center for Fine Arts (Recital Hall)
151 Scenic Drive
Hanover
- Governor Daniels will hold a roundtable discussion about his property tax plan with realtors from southeast Indiana .
12:30 p.m.
300 Spring Street
Jeffersonville
Fort Wayne Journal Gazette
January 18, 2008
By Kimberly Peterson
Indiana was one of only four states nationwide where the unemployment rate did not rise in December, according to a report Friday from the Indiana Department of Workforce Development.
Indiana 's seasonally adjusted unemployment rate was 4.6 percent in December, down from 4.7 percent in November and 4.8 percent in December 2006. Indiana 's unemployment rate is four-tenths of a point lower than the seasonally adjusted national average of 5 percent in December. Seasonally adjusted unemployment rates take into account events that happen every year, such as holiday employment. County data are not seasonally adjusted.
Neighboring states saw their unemployment rates rise. Seasonally adjusted, Michigan 's unemployment rate rose to 7.6 percent in December from 7.2 percent a year earlier. Ohio 's unemployment rate was 6 percent in December, up from 5.6 percent a year earlier.
Gov. Mitch Daniels said in the employment report that Indiana is not immune from a national downturn, but Indiana is in a strong position to deal with one.
"Indiana's uniquely strong performance is a tribute to Hoosier workers and all those who have helped build one of the best environments for new jobs," Daniels said in the report.
Locally, the unemployment rate for the Fort Wayne metropolitan area held steady at 4.6 percent in December, the same rate as November and December 2006. The Fort Wayne metro area consists of Allen, Wells and Whitley counties. Northeast Indiana's unemployment rates in December ranged from 6.2 percent in Steuben County to 3.7 percent in Wells County .
Our View: State of the State speech did not disappoint
Muncie Star Press
January 16, 2008
There were two expectations of Gov. Mitch Daniels' fourth State of the State speech: He would tout his plan to reduce property taxes, and he would take what might be his only opportunity this year to speak to a statewide audience to remind Hoosiers he wants to be re-elected.
He did not disappoint in either case.
Daniels was upfront about his re-election hopes, addressing the issue early during his report on the actual state of the state, and particularly in touting his success at bringing the state back from the verge of bankruptcy, reducing the size of government and, in particular, his reforms at the Bureau of Motor Vehicles. He cited the 8-minute-11-second average wait time at BMV branches as proof that "if our people can fix the BMV, they can fix anything."
His primary focus, which it took six minutes to get to, was on his tax plan, which he held up as the best way to make Indiana the number one state in the country for home-ownership. His main emphasis was on bipartisanship.
Daniels challenged lawmakers to pass his plan, which includes a cap on property taxes, which would be limited to one percent of a home's assessed value and an increase of one cent in the state sales tax. Most school funding and child welfare would be removed from property taxes.
The governor said using the state surplus would result in more money being returned to taxpayers through a reduction in property taxes than they would pay out in additional sales taxes.
He pointed to former Gov. Otis Bowen, who was in the audience and who pushed through a 1973 property-tax relief plan, and challenged lawmakers to send him a bill by Bowen's 90th birthday on Feb. 26. He also obliquely let them know his expectation was serious by advising them not to make spring break plans, implying that he would call the General Assembly back into session if they did not produce.
Daniels also urged lawmakers to take seriously the report from the Indiana Commission on Local Government Reform, and to not let special interests derail either tax reform or efforts to make Indiana 's archaic system of government more efficient.
He used the word brave nine times, apparently signaling his anticipation of resistance from both legislators and regular citizens at the changes and cutbacks in government that will be necessary to implement permanent tax reform.
Most interesting was that lawmakers on both sides of the aisle ate it up, applauding frequently and giving Daniels and Doc Bowen multiple standing ovations. The momentum was definitely going the governor's way as it should. Indiana is in the best shape it has been in years, largely thanks to his efforts, many of which were wildly unpopular at the time.
Time will tell whether he can keep the momentum going. One thing is certain, the ball is now in the Legislature's court.
Flashpoint: Daniels' reform plan can bring lasting property tax relief
Terre Haute Tribune-Star
January 18, 2008
Thirty-five years ago this month I took office as Indiana 's governor and immediately set to work with the General Assembly to deliver property tax relief that was "visible, lasting and substantial."
The situation then was not dissimilar to the position Indiana finds itself in today. Then, as now, rapidly rising property taxes were affecting the ability of Hoosiers to own and make improvements to their homes. Then, as now, schools and local units of government were in need of tight controls on their spending.
In 1973, working with a bipartisan group of legislators, and Lt. Governor Bob Orr who broke several crucial tie votes in the Senate, we delivered on property tax relief. Hoosiers saw their property tax bills go down by 20 percent or more and the more equitable tax structure made it possible for more Hoosiers to own their own homes.
Now, years later, property taxes are again at the forefront of issues facing. Gov. Mitch Daniels' comprehensive plan to cut property taxes immediately and cap residential property permanently at one percent of assessed value is the best solution on the table and legislators should work with the governor to enact his proposals.
Gov. Daniels' plan guarantees every homeowner a major property tax cut. In fact, through tight spending restraints and by returning an appropriate portion of the state's budget surplus to taxpayers, Daniels' plan contains almost two dollars of tax relief for every one dollar of new revenue.
While cutting property taxes is as important today as it was to our 1973 effort, Daniels' plan to cap property taxes at 1 percent of a home's assessed value and make that cap permanent by a constitutional amendment is necessary to avoid future attempts by the legislature to increase spending.
Equally important to the Daniels plan are the spending restraints that will limit the ability of local governments to increase property taxes.
For more than 25 years, the property tax reform measures we instituted in 1973 worked and worked well. Our 1973 plan contained spending controls, but through the years, legislative tinkering loosened the reins. By the time I left office in 1981 the General Assembly had already created 18 different exceptions to the spending controls we put in place. In my final address to the legislature, I warned that continuing this trend could lead to a property tax disaster. My warning went unheeded.
We find ourselves in this position again today, not from insufficient revenues, but because local spending in recent years has grown exponentially.
It is not enough for the legislature to provide some form of temporary property tax relief. Property tax relief must be permanent and must contain the critical spending controls put forward by Governor Daniels.
The governor's plan calls for the Tax and Capital Control Board in each county to review and approve the budgets of all taxing units in the county, ensuring that taxing units limit county spending to within the rate of income growth.
He also wants to institute new taxpayer protections that would prevent total local spending from growing faster than a county's personal income growth, over a six-year period, unless approved by taxpayers in a referendum. Daniels also wants to replace the remonstrance process with a public referendum on significant local projects.
These strict spending control measures are necessary to control rising property taxes and to ensure Hoosier tax dollars are being spent wisely.
I see an opportunity today for Mitch Daniels and our elected senators and representatives to finish the job we started in 1973 by providing real and permanent property tax relief to Hoosiers with strong safeguards to prevent future spending increases.
Our effort in 1973 was not without criticism or compromise. Then, as now, property tax reform requires a vigorous legislative debate. Our effort was successful because legislators from both political parties came together and did what they believed was in the long term best interests of Hoosiers. With leadership from Gov. Daniels, that environment exists again today. The public is engaged and the time for action is now.
- Otis Bowen, M.D.
Former Indiana governor
Daniels takes tax relief plan into lions' den
South Bend Tribune
January 17, 2008
By Mike Smith
INDIANAPOLIS -- Gov. Mitch Daniels told a powerful legislative committee Wednesday that he was open to almost all suggested changes to his property tax plan -- except an individual income tax increase -- if they result in immediate, significant and lasting relief and reform.
"I'm open to other ways to skin this cat," he said.
It is rare for governors to testify before legislative panels, and the first time for Daniels. But he said the property tax issue was so important that he agreed to an invitation from House Ways and Means Chairman William Crawford, D-Indianapolis, to appear before his committee.
Daniels spent more than 90 minutes answering questions from lawmakers about his plan and suggested changes.
However, he first told the tax- and budget-writing committee that it had heard from many special interest groups, but he was speaking for taxpayers.
Several lobbying groups, including those representing business, local governments and schools, have criticized major parts of Daniels' plan.
"I'm here to appeal to you to put taxpayers first in everything we do," Daniels said. His appearance came a day after he promoted his plan to lawmakers and the public in his State of the State speech.
A variety of factors led to many homeowners getting hit with big property tax increases last year, and Daniels has said that many could call the situation a crisis. He says the current system is antiquated and broken, is threatening homeownership for many, and he believes his plan would provide immediate, lasting and meaningful reform.
Virtually all of Daniels' proposal is included in one bill before Ways and Means, while the Senate is considering various components of it in separate bills. Daniels said if his plan is fully implemented in 2009, property taxes on homeowners would be cut by about a third.
Part of the relief would be funded by raising the state sales tax from 6 percent to 7 percent. One lawmaker noted that there was a proposed amendment that would replace some of the lost property tax revenue by instead imposing an income tax increase on a graduated scale.
Daniels said an income tax hike was one thing he could not accept, saying that Indiana 's flat 3.4 percent state rate on individuals was fair and that raising it would hurt hardworking families and the state's economy. He said he looked at all options for increasing taxes to help pay for relief, and found a penny increase in the sales tax to be the best alternative.
He said a 7 percent rate would still be competitive with surrounding states, and the sales tax was at least to some extent a voluntary tax, meaning people only pay it on what they purchase.
Rep. John Day, D-Indianapolis, noted that Daniels signed a bill last year that allows counties to increase local income taxes. Daniels said that was a tool counties could use to reduce property taxes, but it should remain a local government decision.
"It's different for a county here or there to decide on their own as opposed to a state (income) tax that affects everyone," he said.
Rep. Dennis Avery, D-Evansville, said he had an amendment that would involve seeking a repeal of property taxes within a few years, but he did not provide many details.
Daniels called repeal of property taxes on homeowners a worthy goal, but one he could not find an affordable way of funding. He has said that it would require increases in other taxes that would be too high.
But he said his plan, including stricter controls on local spending and other ways of reducing property taxes, could set the stage for possibly trying to repeal homeowner property taxes in the future. And he said if lawmakers could agree on such a plan this session, he would take a look at it.
Daniels said after the hearing that the questions were great, and the exchange gave him a good chance "to try to frame what we really are trying to do here."
"I'm very confident," Daniels said. "I visited with the leadership on both sides this morning. There is real resolve to get something done. We're all chiseling on the same block of marble."
