Thursday, October 25, 2001 ! Volume 8, Number 10 Page 1 of 9 Seizing the public The on the taxing issues Howey !"#"$%#&'#("&$(#)*+)#,"-)%#...#/%) By BRIAN A. HOWEY, in Indianapolis There was a Berry’s World editorial page cartoon that Political ran back in the 1970’s that showed a hippie-type man with graduation robes and mortarboard on, tassel turned, standing with his parents. And he says to them, “Now what?” When it came to Lt. Gov. Joe Kernan’s 21st Century Report Tax Plan, there was the initial thunder clap when it was announced in great detail one week ago. There was an The Howey Political Report is published by NewsLink alignment that defied traditional party lines (IMA, Chamber Inc. Founded in 1994, The Howey Political Report is an independent, non-partisan newsletter analyzing the applauding many parts; labor saying “it stinks”). And then political process in Indiana. through the early part of this week, nothing. Brian A. Howey, publisher It was as if the Indiana public policy community was saying, “Now what?” Mark Schoeff Jr., Washington writer Observed House Minority Leader Brian Bosma on Jack E. Howey, editor Tuesday morning, “The silence is deafening.” The Howey Political Report Office: 317-254-1533 What seemed even stranger was Gov. Frank PO Box 40265 Fax: 317-466-0993 O’Bannon’s travel schedule, which was light and featured no Indianapolis, IN 46240-0265 Mobile: 317-506-0883 “bully pulpit” stops to begin crusading for the plan. Kernan’s [email protected] schedule consisted mostly of editorial board meetings around www.howeypolitics.com the state. That was a sharp contrast to Doc Bowen, who Washington office: 202-775-3242; pushed his property tax plans through the Whitcomb admin- Business Office: 317-254-0535. istration years, then used 1971 and 72 to rally his agenda with the voters prior to winning the governorship. In 1987, Subscriptions: $250 annually via e-mail or Gov. Robert D. Orr criss-crossed the state selling his A Plus fax; $450 annually including the HPR Daily plan, the last major policy initiative Hoosiers had seen. “He Wire. Call 317-254-1533 or 254-0535. took the position that the public had to understand all the © 2001, The Howey Political Report. All rights components and he spent 24-7 selling it to them,” said his reserved. Photocopying, Internet forwarding, faxing or secretary, Dollyne Pettingill Sherman. reproducing in any form, in whole or in part, is a viola- O’Bannon press secretary Mary Dieter told HPR, “We tion of federal law and is strictly prohibited without consent of the publisher. do have a selling job to do,” but added that the communica- continued on page 2 “What are we for? The missing piece for Ticker: Gilroy panel weighs in p. 2 Republicans is, where is our vision...” Kernan Plan Reaction p. 6 Horse Race: Pence, Hill targeted p. 7 - State Sen. Murray Clark, on the tax Columnists: Marcus, Smith, Colwell p. 8 restructuring process Congress: Capitol under attack p. 9 Thursday, Oct. 25, 2001 Page 2 of 9 GILROY PANEL MAKES ELECTION RECOMMENDA- TIONS: A bipartisan task force examining election reform wrapped up its work with recommendations aimed at making it easier to vote and more likely that the vote will be counted (Mary Beth Schneider, Indiana- polis Star). The 29 recom- mendations delivered Monday by Secretary of State Sue Anne Gilroy to Gov. Frank O'Bannon include letting people cast absentee ballots, for any reason at all, for 29 days committed to getting their plan passed (in before an election and Now what? from page 1 some form) in the 2002 session. However, allowing people whose tion mode will be different this time. “Just they will also be talking about the budget voter eligibility is ques- crisis the state is facing.” tioned to cast a "provisional from the reaction of the Republicans and ballot." That provisional bal- House Democrats and what we’re hearing lot would be counted after from the general public, there is hope that In some form... any questions about the people do understand the problem, and The key words there may be voter's eligibility are settled. they are desiring a comprehensive plan. Dennis’ “in some form.” Kernan empha- Gilroy said that in the 19 We’ll be out there talking about it. The sized that his plan was a “starting point,” states that now allow this, governor will be talking quietly with leg- and Republicans such as Bosma and up to 80 percent of voters islators. He’ll be talking about it with edi- who might otherwise have Senate Finance Chairman Larry Borst been turned away are found torial boards.” agreed. But the plan will evolve and to have registered properly, Dieter, who was a reporter for the morph, and that process started to break so their votes should count. Louisville Courier-Journal during Orr’s A into that “deafening silence” on Tuesday. The need for such a change, Plus initiative, observed, “Gov. Orr had That’s when the Apartment Gilroy said, was dramatical- one program that he wanted to sell both to Association of Indiana announced it ly shown in last year's pro- the public and lawmakers. We’ve got a would challenge the constitutionality of tracted presidential recount dual mission: To not only ask lawmakers the shelter allowance - a cornerstone of in Florida, where eligible voters were turned away or to think about the future, we’ve also got to the Kernan plan - in the Indiana Tax wrongly removed from vot- get them and the public to understand Court. How long that will take is anyone’s ing rolls. That recount we’ve got a serious deficit problem.” guess. helped lead to the state cre- The second part of that problem The AAI noted a recent study by ating the Indiana Bipartisan won’t be as evident until new revenue the Nexus Group, a research organization Task Force on Election forecast numbers are released. founded by former staff members of the Integrity. But Julia Vaughn, Kernan’s spokeswoman, Tina Indiana State Tax Board, showing that in policy director for the citi- zens lobbying group Dennis, added, “It is safe to say that the some counties, the overall residential LG is the point person on restructuring property tax base will be reduced by as Continued on page 3 right now, but the governor is equally much as 50 percent. “This will have the Page 3 of 9 Thursday, Oct. 25, 2001 effect of shifting the burden of property When HPR asked O’Bannon and tax in those taxing districts to all other Kernan what would happen to the plan if taxpayers who do not benefit by the shel- the courts overturned the shelter ter tax allowance,” said AAI Executive allowance, Kernan responded, “We Director Lynne Moistner. “Especially hard believe that the shelter allowance will hit by dramatic increases in taxes will be pass constitutional muster. It says that the apartments participating in subsidized basic cost of providing shelter for your Common Cause/Indiana, housing programs designed to ensure an family should not be considered wealth said that while the move adequate supply of affordable rental units for the purposes of taxation. We believe toward provisional voting is for low income residents.” that it makes sense, is fair and defensible. an important one, it's the On Wednesday morning, the Nat- We plan to defend it to the fullest extent.” only major step this task ional Federation of Independent Gov. O’Bannon explained, “I force took. Businesses came out vociferously against think if it is declared unconstitutional and STATE TO TAKE OVER the plan. “The first problem we have with the homeowners lose that kind of support VOUCHER PAYMENTS: In it is it was done behind closed doors,” and their property taxes for many reasons one year, the state of said the federation’s Ed Bowman. He said go much higher, we’ll have to look at Indiana will take over issu- by doing so the public policy community reducing some of the other tax cuts and ing the checks that help is at the mercy of the administration for put it on homeowners. We don’t even low-income parents afford obtaining information. “No one in the want to look at that. We’ve got a good child care (Joseph Dits, administration has given us the research. mix now that really protects the home- South Bend Tribune). It's We think it’s irresponsible to go with a owner and takes us into the 21st Century the state's effort to prevent program when you don’t know what future economy. We hope that everyone another large-scale misuse you’re doing.” working together can understand that. If of government funds that a recent audit says happened The federation also zeroed in on the we don’t do something to move that in Marion County. Local offi- franchise tax, saying it would shift the tax down, then we’ll have to do it some other cials hope that the new sys- burden from large corporations to small way.” HPR asked Gov. O’Bannon how the tem will keep the local con- businesses, which he said contributes to timing of a court ruling on the shelter sumer input. For now, agen- 80 percent of new job growth, including allowance could impact the plan. “Well, cies in each county issue the lion’s share in the high-tech sector. It that depends on the court,” O’Bannon the checks to child-care was a similar argument Republican Rex said. “What it says, certainly, could make providers.