QUOTE
State legislation on taxes, health care, BMV advances
Several initiatives advance or fail on close party-line votes.
From The Associated Press
INDIANAPOLIS — House Democrats turned back GOP attempts to change a bill that would give local governments new taxing powers and moved the legislation to the full chamber on Wednesday.
Republicans on the budget-writing House Ways and Means Committee offered at least a dozen amendments to the bill, but all failed mostly along straight party-line votes. The bill was then endorsed 16-9, with Rep. Larry Buell of Indianapolis casting the only Republican yes vote.
House Democrats say the bill would provide significant property tax relief to homeowners and give local governments more flexibility in raising revenue.
But most Republicans criticized the bill for providing no tax relief this year, when a variety of factors are expected to increase property taxes on homeowners by an average of 15 percent statewide.
They also said that although it might provide some property tax relief starting in 2008, it also would allow local governments to spend more money than currently authorized.
The plan would allow counties to raise local individual income taxes by up to 1 percentage point and do the same with a new local income tax on corporations. At least 60 percent of the new revenue would have to go toward offsetting property taxes, with the remaining 40 percent used to fund public safety services.
The proposal would freeze property tax levies used to pay for child welfare services at 2005 levels and shift future growth in those costs from counties to the state. That would save property taxpayers $121 million in 2008, according to House Democrats.
Espich said if all counties opted for the maximum income tax increase, the bill would provide local governments with about $500 million in new money that would not have to go toward property tax relief. One of his amendments would have required that all new revenue be spent on that, but it was rejected.
Governor’s health plan approved by panel
A Senate committee unanimously approved the governor’s plan to provide health insurance to thousands of uninsured Indiana residents — but the legislation does not include a way to pay for the program.
Gov. Mitch Daniels has proposed raising the state’s cigarette tax to help fund the program, dubbed the Healthy Indiana Plan. The Indiana House, not the Senate, is expected to take the lead on studying the cigarette tax.
The plan contained in the Senate bill would be available to people without employer-provided health insurance and who earn less than double the federal poverty level, a sliding scale that is $9,800 for a single person. An estimated 850,000 Indiana residents lack health insurance, and Daniels says those earning less than double the federal poverty level number 350,000.
The more the cigarette tax is raised, the more people could be covered by the plan, the Daniels administration says. Although there is bipartisan backing for expanding health care coverage, there has been no groundswell of support so far for increasing the cigarette tax, which is currently 55 cents per pack.
Under the Healthy Indiana Plan, beneficiaries would get up to $500 in free preventive care, as well as $300,000 of annual insurance coverage. Participants would have to pay into personal health accounts used for doctor visits and prescriptions.
The Senate Health Committee made several changes to the governor’s plan before approving it 9-0.
Sen. Patricia Miller, R-Indianapolis, said the changes make the plan more flexible, but added that the legislation is a work in progress.
“We will be working on this bill the entire session,” she said. Because bill does not include a way to fund the program, it will now be sent to the Senate Appropriations Committee.
BMV bill passes House
Legislation that would shift administration of the Bureau of Motor Vehicles from a governor-appointed post to the secretary of state passed the House on a straight party-line vote Wednesday, with all 51 Democrats voting for it and all 49 Republicans against.
Democrats also passed a bill on a party-line vote that would give state employees and some local government workers collective bargaining authority through state law.
The BMV bill would abolish the BMV Commission, which provides oversight of the state’s 139 license branches. The commission’s powers, duties, functions and property would be overseen by the secretary of state, a post currently held by Republican Todd Rokita.
Scott Pelath, D-Michigan City, said his bill would make a single, elected official accountable for an agency that has had a troubled history under both Democratic and Republican governors.
Those problems included delays and long lines last summer during the agency’s transition to a new computer system. The agency at the time was led by Joel Silverman, an appointee of Gov. Mitch Daniels. He already had irked many lawmakers for closing more than 20 license branches with the blessings of Daniels.
Pelath has said his bill would aid Indiana’s elections by making the secretary of state — who oversees elections — responsible for the agency that issues drivers licenses, which many Hoosiers use as the photo ID required in order to vote in person on election days.
Republicans said new BMV Commissioner Ronald Stiver, also a Daniels appointee, was working hard to fix problems at the agency and it was a superficial change to simply switch oversight away from the administration.
The other bill passed by Democrats would give state employees collective bargaining rights they enjoyed under executive orders issued by Democratic governors for 16 years, beginning in 1989 under then-Gov. Evan Bayh. On his second day in office in January 2005, Daniels rescinded collective bargaining rights and settlement agreements that unions had negotiated for thousands of the state’s more than 30,000 executive branch workers. He said the pacts hindered his ability to quickly reshape government.
Democrats said collective bargaining rights gave state employees a voice that should be respected by state government. Republican opponents said the bill would force public employees to pay union dues whether they joined such an organization or not, and could lead to large increases in salaries and benefits to be paid for by taxpayers.
Given the party-line votes on both bills, their chances of passing the Republican-controlled Senate are slim.
Several initiatives advance or fail on close party-line votes.
From The Associated Press
INDIANAPOLIS — House Democrats turned back GOP attempts to change a bill that would give local governments new taxing powers and moved the legislation to the full chamber on Wednesday.
Republicans on the budget-writing House Ways and Means Committee offered at least a dozen amendments to the bill, but all failed mostly along straight party-line votes. The bill was then endorsed 16-9, with Rep. Larry Buell of Indianapolis casting the only Republican yes vote.
House Democrats say the bill would provide significant property tax relief to homeowners and give local governments more flexibility in raising revenue.
But most Republicans criticized the bill for providing no tax relief this year, when a variety of factors are expected to increase property taxes on homeowners by an average of 15 percent statewide.
They also said that although it might provide some property tax relief starting in 2008, it also would allow local governments to spend more money than currently authorized.
The plan would allow counties to raise local individual income taxes by up to 1 percentage point and do the same with a new local income tax on corporations. At least 60 percent of the new revenue would have to go toward offsetting property taxes, with the remaining 40 percent used to fund public safety services.
The proposal would freeze property tax levies used to pay for child welfare services at 2005 levels and shift future growth in those costs from counties to the state. That would save property taxpayers $121 million in 2008, according to House Democrats.
Espich said if all counties opted for the maximum income tax increase, the bill would provide local governments with about $500 million in new money that would not have to go toward property tax relief. One of his amendments would have required that all new revenue be spent on that, but it was rejected.
Governor’s health plan approved by panel
A Senate committee unanimously approved the governor’s plan to provide health insurance to thousands of uninsured Indiana residents — but the legislation does not include a way to pay for the program.
Gov. Mitch Daniels has proposed raising the state’s cigarette tax to help fund the program, dubbed the Healthy Indiana Plan. The Indiana House, not the Senate, is expected to take the lead on studying the cigarette tax.
The plan contained in the Senate bill would be available to people without employer-provided health insurance and who earn less than double the federal poverty level, a sliding scale that is $9,800 for a single person. An estimated 850,000 Indiana residents lack health insurance, and Daniels says those earning less than double the federal poverty level number 350,000.
The more the cigarette tax is raised, the more people could be covered by the plan, the Daniels administration says. Although there is bipartisan backing for expanding health care coverage, there has been no groundswell of support so far for increasing the cigarette tax, which is currently 55 cents per pack.
Under the Healthy Indiana Plan, beneficiaries would get up to $500 in free preventive care, as well as $300,000 of annual insurance coverage. Participants would have to pay into personal health accounts used for doctor visits and prescriptions.
The Senate Health Committee made several changes to the governor’s plan before approving it 9-0.
Sen. Patricia Miller, R-Indianapolis, said the changes make the plan more flexible, but added that the legislation is a work in progress.
“We will be working on this bill the entire session,” she said. Because bill does not include a way to fund the program, it will now be sent to the Senate Appropriations Committee.
BMV bill passes House
Legislation that would shift administration of the Bureau of Motor Vehicles from a governor-appointed post to the secretary of state passed the House on a straight party-line vote Wednesday, with all 51 Democrats voting for it and all 49 Republicans against.
Democrats also passed a bill on a party-line vote that would give state employees and some local government workers collective bargaining authority through state law.
The BMV bill would abolish the BMV Commission, which provides oversight of the state’s 139 license branches. The commission’s powers, duties, functions and property would be overseen by the secretary of state, a post currently held by Republican Todd Rokita.
Scott Pelath, D-Michigan City, said his bill would make a single, elected official accountable for an agency that has had a troubled history under both Democratic and Republican governors.
Those problems included delays and long lines last summer during the agency’s transition to a new computer system. The agency at the time was led by Joel Silverman, an appointee of Gov. Mitch Daniels. He already had irked many lawmakers for closing more than 20 license branches with the blessings of Daniels.
Pelath has said his bill would aid Indiana’s elections by making the secretary of state — who oversees elections — responsible for the agency that issues drivers licenses, which many Hoosiers use as the photo ID required in order to vote in person on election days.
Republicans said new BMV Commissioner Ronald Stiver, also a Daniels appointee, was working hard to fix problems at the agency and it was a superficial change to simply switch oversight away from the administration.
The other bill passed by Democrats would give state employees collective bargaining rights they enjoyed under executive orders issued by Democratic governors for 16 years, beginning in 1989 under then-Gov. Evan Bayh. On his second day in office in January 2005, Daniels rescinded collective bargaining rights and settlement agreements that unions had negotiated for thousands of the state’s more than 30,000 executive branch workers. He said the pacts hindered his ability to quickly reshape government.
Democrats said collective bargaining rights gave state employees a voice that should be respected by state government. Republican opponents said the bill would force public employees to pay union dues whether they joined such an organization or not, and could lead to large increases in salaries and benefits to be paid for by taxpayers.
Given the party-line votes on both bills, their chances of passing the Republican-controlled Senate are slim.