Daniels promises balanced budget

At the commencement of the State of the State address Wednesday, Governor Mitch Daniels described his first year with initiatives aimed at pleasing partisan interests.\nWith help from the General Assembly, he has won tax benefits for businesses, begun to decentralize government and pushed through the daylight-saving bill.\n"Indiana is no longer on its heels, waiting while our problems bounce past us or through our legs," he said in the televised address. "Even though the inning is still an early one, we are moving forward against our challenges."\nDaniels reminded Indiana residents that not long ago, the state had a $2 billion surplus. With less attention paid to special interests, the state passed the tightest budget in 50 years, he said.\nThe governor has confidence his administration will balance the budget by June 30.\n"Congratulations to all who helped," he said.\nDaniels also underscored his administration's efforts to end sweetheart deals, perks for people who have high positions within the government. Indiana has auctioned many state-owned items, he said, such as eight aircraft and 10 rocking chairs originally purchased for $2,000 each.\nDaniels emphasized his appointment of an inspector general as one of the most effective methods of reducing misuses of tax dollars.\n"There is now a place for the whistles of the whistleblowers to be heard," he said. "Now that people know wrongdoing will be acted on, whistles are blowing, 10 times as often as a year ago."\nAmong his future endeavors, Daniels proposed a drastic highway plan, new fundraising strategies and a 25 cent increase on cigarette taxes to discourage nicotine addiction. A comment that Indiana residents "weigh, drink and smoke too much" roused an unexpected applause and several sporadic chuckles from the \naudience.\nThe cigarette tax increase is not unexpected, coming from the governor who attempted to initiate a one year tax increase on the wealthiest bracket of residents last year. Daniels also said he would allocate $156 million from a tax amnesty period to pay off half of back-payments owed to schools.\nOne of Daniels' fundraising ideas is his proposal to raise fees on the Indiana Toll Road and possibly lease it to a private ownership, but many Democrats are wary of the plan, concerned it will only lead to a slippery slope of fee increases.\nDaniels does not seem fazed by his opponents.\n"Balancing the people's books is a solemn duty, but it is not the whole business, or the true purpose of government," he said. "That highest purpose is to provide excellent public service to citizens at the lowest possible cost to taxpayers"