Bargaining away the reserve

June 2, 2009
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In his five-minute address last night, Mitch Daniels referred to other statesâ?? fiscal woes no fewer than four times.

Daniels, who is so fiscally conservative that one wonders whether he darns his own socks, is rightfully proud that his state hasnâ??t fooled away a strong financial position. Few governors have had the backbone to impose such discipline on their legislatures.

Last night, though, Daniels said heâ??s willing to spend a quarter of the surplus as one of several compromises to get a budget passed, leaving about $1 billion remaining.

How do you feel about spending down some of the surplus? The economy is nowhere near recovered, and some forecasters talk of a possible double-dip recession or a recovery requiring not months but years.

Should Daniels bargain away even a quarter of the reserve at this point?
  • I think this is good. He said we don't want to tap it unless we have to. We'll it's getting to that point where we need a little of it to help out, and get us through the budget cycle. It's good he is leaving a buffer in there - in case, like you said it gets worse. If it gets worse, than the worse they are planning for - then we have $1B surplus we could tap again if we need to. I didn't go out and empty my savings account when things got bad - did you? If you did - I'm glad I don't have to be a child or spouse living under your household finances.
  • It won't be long before we have a new governor. Then look out. I figure Mitch wants to spend some of the reserve on necessary stuff before his successor comes in and blows the whole pile on some special interest woowha. I can't imagine this economy getting much better before Mitch leaves.
  • Why is education always the sacred cow? Never allowing cuts except to IPS it seems, but all around, always an increase. When I look at the Taj Mahals that have been built at Ben Davis and Center Grove for example, I wonder why the school boards always think they have to build the latest and greatest. Seems like we needed common sense architects and common sense plans long ago to keep costs down.

    Adding to this is the terrible burdens put upon schools by the federal governments idiotic no child left behind and other foolishness that requires dancing with the devil and overburdening administrative goober-headed nonsense. It is time to take the federal gov'mint out of the education system before they take it from near to total collapse. The increases have to stop. How much more money do we throw at the disfunctional public education system?

    This is by no means a smack down on teachers. They have their hands and brains tied behind their backs by overburdening rules and chicken bleep administrations. If they were allowed to do their jobs efficiently and effectively and students were kept in line, perhaps progress could be made.

    Legislators - find a way to make it NEARLY impossible for money sucking lawyers to be able to sue schools for their latest, creative rights issues. We need to get the so-call Civil Liberties Union out of our lives before they make our nation another North Korea.

    Get these things done and then, maybe we can get somewhere.
  • Like what jopyce? the Lucas oil stadium? remember - MITCH buolt that and didn't pay for it.

    sucks to be us.
  • Did Lucas Oil come from the reserve fund?
  • Not initially he didn't build LOS with Reserve money - we'll see what comes up on the CIB Bailout within the outlined budget forthcoming in a few days.
  • The best news yet: Bob Grand is toast and Mitchy takes the CIB inside the Gov's office and exposes Ballard for the inept fool that he is. Now that BGrand is gone, who is Mayor McCheese gonna hide behind?

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  1. Aaron is my fav!

  2. Let's see... $25M construction cost, they get $7.5M back from federal taxpayers, they're exempt from business property tax and use tax so that's about $2.5M PER YEAR they don't have to pay, permitting fees are cut in half for such projects, IPL will give them $4K under an incentive program, and under IPL's VFIT they'll be selling the power to IPL at 20 cents / kwh, nearly triple what a gas plant gets, about $6M / year for the 150-acre combined farms, and all of which is passed on to IPL customers. No jobs will be created either other than an handful of installers for a few weeks. Now here's the fun part...the panels (from CHINA) only cost about $5M on Alibaba, so where's the rest of the $25M going? Are they marking up the price to drive up the federal rebate? Indy Airport Solar Partners II LLC is owned by local firms Johnson-Melloh Solutions and Telemon Corp. They'll gross $6M / year in triple-rate power revenue, get another $12M next year from taxpayers for this new farm, on top of the $12M they got from taxpayers this year for the first farm, and have only laid out about $10-12M in materials plus installation labor for both farms combined, and $500K / year in annual land lease for both farms (est.). Over 15 years, that's over $70M net profit on a $12M investment, all from our wallets. What a boondoggle. It's time to wise up and give Thorium Energy your serious consideration. See to learn more.

  3. Markus, I don't think a $2 Billion dollar surplus qualifies as saying we are out of money. Privatization does work. The government should only do what private industry can't or won't. What is proven is that any time the government tries to do something it costs more, comes in late and usually is lower quality.

  4. Some of the licenses that were added during Daniels' administration, such as requiring waiter/waitresses to be licensed to serve alcohol, are simply a way to generate revenue. At $35/server every 3 years, the state is generating millions of dollars on the backs of people who really need/want to work.

  5. I always giggle when I read comments from people complaining that a market is "too saturated" with one thing or another. What does that even mean? If someone is able to open and sustain a new business, whether you think there is room enough for them or not, more power to them. Personally, I love visiting as many of the new local breweries as possible. You do realize that most of these establishments include a dining component and therefore are pretty similar to restaurants, right? When was the last time I heard someone say "You know, I think we have too many locally owned restaurants"? Um, never...