IBJNews

UPDATE: House leader says tax, preschool deals near

Back to TopCommentsE-mailPrintBookmark and Share

Republican leaders working on a series of last-minute compromises on top-tier issues of business tax cuts, an early childhood education program and spending for roads announced Tuesday they were close to final agreements.

"I say agreement in principle because we still have to look at language," House Speaker Brian Bosma, R-Indianapolis, said. "The leaders, including our fiscal leaders, have agreed in principle on these issues and we're putting language together to make sure we're on the same page with some of the details."

Plans that would cut business taxes, establish a preschool program for low-income children and spend up to $400 million on new road construction were close to winning final approval, with lawmakers preparing to wrap up work on their 2014 session Thursday.

House and Senate Republicans announced a compromise Tuesday on a series of business tax cuts. The compromise package further cuts the state's corporate and financial institution taxes gradually through 2023. It also would allow counties to eliminate the business personal property tax, which is levied on business equipment, in two ways: by letting counties eliminate the tax on small businesses and by allowing counties to exempt new business equipment and companies that relocate to Indiana.

The cuts amount to more than what Senate or House Republicans had initially proposed but are still significantly less than what GOP Gov. Mike Pence sought at the start of the session, when he called for the complete elimination of the tax.

The plan quickly drew concerns from lobbyists for Indiana's local governments, which have sought to have the state replace any money lost because of the tax cut. But the prospect that the cuts would not take effect until July 1, 2015, after the General Assembly holds another session and draws up a new budget, left them hopeful.

"I think the most important thing to realize is that there's no single dollar of immediate lost revenue to local governments. That's first and foremost to us," said Matt Greller, executive director for the Indiana Association of Cities and Towns.

Budget concerns have increasingly weighed on the state's fiscal leaders as tax collections have flagged, even as the national economy crawls out of the recession.

The state has come up $90 million short on expected tax collections so far this year, and the expectation itself was lowered in December when budget forecasters discovered the state was on track to collect $300 million less through 2015. The dour news in December in spurred Pence to cut agency budgets and put the state plane up for sale, as part of an effort to maintain the state's continuing budget surplus.

Those fiscal concerns have weighed on lawmakers looking at new spending requests from Pence. The governor's call to pay for low-income children to attend preschool won broad bipartisan support in the House earlier this year but ran aground in the Senate.

Senate President Pro Tem David Long, R-Fort Wayne, suggested Pence may have to rely on money he saved through the December budget cuts — also called reversions — if he wants to pay for a preschool voucher program this year. But he declined to release further details.

"What we've got proposed out there is far less expensive for the state and far more reasonable and affordable than the pilot program that was originally proposed," Long said. "But we're still not there."

Lawmakers have until Friday to complete work on their 2014 session, but were planning to leave town Thursday, before they lose their hotel rooms to the many basketball fans flooding Indianapolis for this weekend's Big  Ten Conference tournament.

Pence spokeswoman Kara Brooks emailed a statement saying the governor was happy with how negotiations are coming.

"Governor Pence is encouraged by his discussions with leadership and looks forward to continuing to work with members of the General Assembly to advance the shared agenda for good jobs and roads, great schools and strong communities during the remainder of this session," the statement said.Indiana Speaker of the House Brian Bosma said the governor and legislative leaders have reached broad agreement on some of the biggest legislative items being considered this session.

 

ADVERTISEMENT

  • Politicians
    $40mil for new roads? What about the junk I drive on everyday? New roads? Bet some developer is about to really rake it in when they sell the land to the state for 4 times market. I'm red but the only red I see is my face when I think about our politicians.
  • agree with Markus
    I could not agree more Markus. Republicans only method for creating private revenue is from raiding public funds.
  • Destruction continues
    Pretty soon there will be nothing left of this State with the GOP destruction derby in action at the state house.

    Post a comment to this story

    COMMENTS POLICY
    We reserve the right to remove any post that we feel is obscene, profane, vulgar, racist, sexually explicit, abusive, or hateful.
     
    You are legally responsible for what you post and your anonymity is not guaranteed.
     
    Posts that insult, defame, threaten, harass or abuse other readers or people mentioned in IBJ editorial content are also subject to removal. Please respect the privacy of individuals and refrain from posting personal information.
     
    No solicitations, spamming or advertisements are allowed. Readers may post links to other informational websites that are relevant to the topic at hand, but please do not link to objectionable material.
     
    We may remove messages that are unrelated to the topic, encourage illegal activity, use all capital letters or are unreadable.
     

    Messages that are flagged by readers as objectionable will be reviewed and may or may not be removed. Please do not flag a post simply because you disagree with it.

    Sponsored by
    ADVERTISEMENT

    facebook - twitter on Facebook & Twitter

    Follow on TwitterFollow IBJ on Facebook:
    Follow on TwitterFollow IBJ's Tweets on these topics:
     
    Subscribe to IBJ
    1. Uh, sorry Johnnie, but you are incorrect. Despite the assertions by yourself and various defenders and captains, sports attendance is NOT off significantly at most sporting events in the US. Variances in attendance has been in the range of single digits, both + & - for years now. MLB has had most of its best overall attendance nubers in the last decade, and that trend has been consistent for most major sporting events. The number one issue cited by most fans when asked about attendance is the overall cost of attending. The presence of HD and big screen televisions in home doesn't even register, as a factor for not attending an event. VALUE in the product is the key, and apparently is something lacking in the current ICS. What other explanation is there when with what is routinely touted as the "best" racing on the planet, fans are staying away in DROVES. A "close" title battle into the last event at Fontana, with the "cars and stars" of the ICS, and who showed up? MAYBE 8K. Sorry, but HD TV isn't to blame for that kind of fan apathy.

    2. Do you need finance to establish your business ? Are you interested in getting a loan at 3% from our private company? If so please Email: suntrust_oil@blumail.org

    3. If she was worth the $ the public outcry over direct tv dropping them would have kept them on their dishes as we have seen with other companies. I too quit watching channel 13 after she showed up since I left channel 8 because of her all show rather than production results. When Randy on 8 corrected her she had a big head and incorrectly challenged his correction for pronunciation of a city. Other antics while she matures was too much for me with her very inaccurate forecasts. All the forecasters were predicting rain until Thursday except Chris. They predicted sunny on Thursday but instead of rain until Thursday upon which the sun would finally make it out in full glory Chris was right on the money just as I too predicted looking at the radar on weather.gov. One thing I love about Angela is the fear you can see in her every time it thunders in the winter. It far exceeds the entertainment value of her body language (high heel noise drags, depression, etc) when her forecasts are so incorrect. Her hair stands on end, you have to see it!!!

    4. Good Day, Apply For A Loan I am Mr Fernadez Antonio, a private Loan lender and a cooperate financial for real estate and any kinds of business financing. I also offer Loans to individuals, Firms and cooperate bodies at 3% interest rate We offer any kind of loans. email us via fernadezloaninvest@outlook.com LOAN APPLICATION FORM First name:......................... Middle name:......................... Last name:........................................ Date of birth (yyyy-mm-dd):....................... Gender:........................................... Marital status:................................... Total Amount Needed............................... Loan Duration.................................... Address:.......................................... City:............................................. State/province:................................... Zip/postal code:.................................. Country:.......................................... Phone:............................................ Fax:.............................................. Mobile/cellular:.................................. Monthly Income.................................... Occupation:....................................... Best Regard, Mr Fernadez Antonio.

    5. i will love to share my testimony to you all the people in world i got married to my husband about 2 year ago we start having problems at home like we stop sleeping on the same bed,fighting about little things he always comes home late at night,drinking too much and sleeping with other women out side i have never love any man in my life except him. he is the father of my child and i don't want to loose him because we have worked so hard together to become what we are and have today .few month ago he now decided to live me and the kid,being a single mother can be hard sometimes and so i have nobody to turn to and i was heart broken.i called my mom and explain every thing to her,my mother told me about DR.okoro how he helped her solve the problem between her and my dad i was surprise about it because they have been without each other for three and a half years and it was like a miracle how they came back to each other. i was directed to DR. okoro on his email:okorospell@gmail.com and explain everything to him,so he promise me not to worry that he will cast a spell and make things come back to how we where so much in love again and that it was another female spirit that was controlling my husband he told me that my problem will be solved within two days if i believe i said OK So he cast a spell for me and after two days my love came back asking me to forgive him i Am so happy now. so that why i decided to share my experience with every body that have such problem contact Dr okoro the great spell caster on his email addresses spellcasterforlove@outlook.com

    ADVERTISEMENT