Dockside gambling rejected

The push to legalize dockside gambling died again at the hands of Senate Republicans Wednesday.\nHouse Ways and Means Committee Chairman Patrick Bauer, D-South Bend, presented the idea Tuesday as a way to sew up the state's $923 million revenue shortfall. Bauer and his Democratic colleagues in the House -- who hold a 53-47 majority -- hope to increase funding for schools and universities by 4 percent to keep pace with inflation.\nThat's a point of contention with Senate Republicans, who control the chamber 32-18. They maintain that leaner fiscal times require budget cuts.\n"It is our opinion that we can operate within our current revenue steam," Sen. Robert Meeks, R-LaGrange, said. "It is our recommendation we do not need any revenue enhancement."\nBookkeeping tactics could be used to temporarily free up money for the two-year budget cycle, Meeks said. Senate Republicans also proposed tapping $325 million from the state's Rainy Day Fund. \nThe suggestion met with counterpoint from Gov. Frank O'Bannon's office.\n"That would only be in the event of a recession," O'Bannon spokesman Thad Nation said. "That would only be if we had two quarters of negative growth. That's not going to be triggered under this scenario."\nA decrease in tax collections arising from a slowing national economy threatens to wipe out the state's projected $874.3 million surplus. State coffers have also dwindled in recent years with tax cuts and new prisons.\nO'Bannon announced his own plan to steer the state through its fiscal troubles last week. In a rare visit to the General Assembly, he proposed delaying a property tax credit for two years and raising cigarette taxes 50 cents to 65 cents a pack.\n"We believe the governor has introduced a very reasonable plan," O'Bannon spokeswoman Angela Belden said. "And we hope the legislature will see that."\nA study released by the University of Michigan Tuesday might shore up support for the governor's proposal, Belden said. Researchers found that higher cigarette prices prevents teen smoking. \nStill, tobacco is grown in 16 counties in Indiana, and lawmakers fear angry constituents.\nBauer said he put the dockside legislation on the table to avoid the first tax increase since 1987, which Senate Republicans adamantly oppose. The idea has also fallen on deaf ears with many House Democrats, who hope to maintain their majority in the 2003 election. \n"It won't get to the floor of either chamber," Bauer said. "And the Senate Republicans won't go for it. It looks like we're going to have to start trimming."\nMeeks and his Republican colleagues back more modest increases in funding for schools and universities. University officials hope they can avoid a severe tuition hike.\n"We realize times are tough -- we'd be naive to think the money comes from nowhere," IU spokeswoman Susan Dillman said. "We know this budget is going to be tough, but we want to keep the university accessible." \nThe House passed the dockside gambling legislation 57-43 in early January.\nIt would have allowed the state's 10 riverboat casinos to remain moored so patrons could come and go at their leisure. It also would have raised admissions and wagering taxes, which Bauer said would have generated $377 million a year in new revenue.\nLawmakers scaled back the Senate version, but it failed to clear committee.