House breaks with optimism

INDIANAPOLIS -- When the Indiana House broke for the midway point of the 2003 legislative session, House Speaker Patrick Bauer thanked members for a smooth, cooperative, mostly bipartisan first half.\nIt was no exaggeration.\nIn the Democrat-led House and Republican-controlled Senate, partisan tensions were kept in check and all sides went home for a five-day respite feeling positive. Gov. Frank O'Bannon was in a good mood, too.\nThe House had passed a two-year budget and a retooled version of his Energize Indiana economic development plan and sent them to the Senate on time.\n"I think as long as Energize Indiana and the budget keep moving, they're doing a great job," O'Bannon said with a wide smile. "I think on other bills of substance, they have been very responsible."\nAt the prompting of a reporter's question, O'Bannon added, "That would include many gambling bills dying."\nGambling issues are usually not partisan, but they are almost always contentious. They were proving so again and grabbing headlines when Bauer suddenly sent the most controversial bill -- one that would authorize slot-like machines at horse racing venues -- to an early grave.\nBauer said he was taken by surprise when he learned that a major contributor to his campaign last year was trying to buy an equity interest in a company that owns part of the Hoosier Park pari-mutuel track in Anderson.\nHe said the sale created an air of impropriety because there was pending legislation that would make Hoosier Park much more valuable, so he killed the bill. Another bill to legalize video gambling machines in bars was killed the same day.\nThe House overwhelmingly approved a bill to establish a casino in Orange County, but unlike last year, it was not tied to other pro-gambling measures.\nRegardless, it likely faces a tough road in the Senate, since Senate President Pro Tem Robert Garton, R-Columbus, and Senate Finance Chairman Larry Borst, R-Greenwood, are opposed to it.\nThe House passed a two-year, $22.8 billion state spending plan on a straight 51-49 party-line vote, but such partisan tallies on budget bills are common.\nThe Democrat plan would transfer more than $800 million from teacher pension savings, tobacco-settlement funds and other accounts to help pay for itself. Spending on Medicaid and prisons would be frozen at current levels -- something Senate Republicans say is unrealistic.\nDemocrats said such steps were necessary to preserve a surplus at the end of two years and provide enough money for public schools. The bill would increase basic funding for schools by an average of 2 percent and give slight increases to public universities.\nBorst credited the plan for not raising state taxes, not delaying the unfolding property tax reassessment or dismantling the tax-restructuring package passed last year.\nBut he and other Republicans who control the Senate are sure to make some major changes to the bill, which they say is $800 million out of balance. They also fault the plan for shifting tens of millions of dollars in state expenses to local property tax rolls.\n"We need to solve the problems embedded in state spending instead of simply pushing the burden onto local governments," Borst said.\nSenate Republicans hope to pass their version of a budget by early April. That would give House and Senate negotiators about three weeks to strike a compromise, since the regular session adjournment deadline is April 29.\nMost Democrats and Republicans in the House claimed a victory on March 4 by passing a scaled-back version of O'Bannon's economic development plan. Democrats accepted some GOP additions to the plan to keep it alive, then members passed it by an overwhelming 90-9 vote.\nThe cornerstone of the plan would borrow against future tobacco-settlement payments to fund research-and-development ventures and move products to market. It also includes money for rural development and so-called technology parks -- high-tech versions of industrial parks.\nThe GOP additions included tax breaks to manufacturers that use old equipment, an extension of tax credits for money businesses spend on research and development, and tax credits for some college students who remain in Indiana after graduation.\nDemocrats also agreed to formation of a commission that would do an in-depth study of state government to find waste and duplication among agencies, and a new advisory panel on state economic-development efforts.\nHouse Minority Leader Brian Bosma, R-Indianapolis, called the compromise a major feat.\n"If someone had stated six months ago that a minority caucus could establish an economic development and fiscal restraint plan and have a significant portion of it pass on a bipartisan vote, I think all parties would have said, 'You need to get your head on straight,'" Bosma said.