Statehouse Progress: Not So Fast

Any illusion (or perhaps delusion is more apt) of this special session going smoothly and ending quickly are pretty much history.
 
Not only don’t we have a behind-the-scenes deal from House Democrats and Republicans to put forth a state budget to the Senate in a timely manner, but day one of the special session showcased partisanship and maneuverings that will likely push the proceedings right up to the June 30 deadline.
 
The House Democrats introduced their own one-year budget via House Bill 1001, which is in line with their approach for the regular session and in contrast to the governor’s traditional two-year plan announced last week.
 
From virtually the start of the proceedings on Thursday, the two parties were at odds. Minority Leader Brian Bosma appeared blindsided that two additional measures – House Bill 1002 (aiding the Capital Improvement Board) and House Bill 1003 (involving public assistance) – were coming into play instead of focusing strictly on the budget. Time was also taken up by Republican concerns that gaming provisions would find their way into the bills.
 
As testimony surrounding House Bill 1001 begins today in the Ways and Means Committee (9 a.m.), amendments to the measure are already in the works. And that’s before the Senate gets its hands on it. So things are shaping up nicely to mirror the back and forth that led to no budget at all in April. Will someone blink this time? You would like to think so – especially since each day of the special session means taxpayer dollars are being spent for something that should have been done right the first time!
 
The full House reconvenes on Monday; when the Senate comes back is anyone’s guess as they are at the mercy of the House actually moving the bill. That leaves a little over two weeks to straighten out this entire budget mess.
 
Wonder what the over/under is on hitting June 30? On second thought … let’s not even think about it.

Statehouse Leaves One Searching for the Right Words

I’ve been doing this writing thing for publication for more than 30 years now (must have started from the crib, right?) and rarely experience trouble expressing myself. The problem here is not the dreaded writer’s block, but what not to say following a long, long day at the Indiana Statehouse on Wednesday.

(Indiana Chamber members can get the full story directly from ICC president Kevin Brinegar on Friday from 9:30-10:30 a.m. ET in our monthly Policy Issue Conference Call. Kevin has just about seen it all in his nearly 30 years around the Statehouse, but Wednesday’s developments had him joining others in shaking his head. Remember, this is for members only. Registration is required).

I’ll try to be brief. First key point: At a time when economic fortunes are low and unemployment is high, legislators pass an unemployment insurance trust fund bill that practically guarantees additional job losses. Figure that one out. Second, a state budget proposal (the lone requirement for the nearly four-month session) fails in the House (71-27) and that is the good news. The "compromise" would have started the steady climb up the "cliff" that everyone said needed to be avoided (in other words, relied too heavily on stimulus funds and set the stage for big tax hikes two years from now or sooner) and took several steps in reverse on education policy.

I’ve come to learn in 11 years at the Chamber that negotiations in the final days of the session produce the ultimate final bills on the major issues. I’m not a big fan of that, but I’ve come to accept it as reality. The products of these conference committees, however, seemed to evolve from one-sided negotiations. House Republicans and Senate Democrats, the minorities, talked of being shut out. Senate Republicans unfortunately seemed to be missing in action based on the conference committee outcomes.

Just a few details. The unemployment "solution" was termed a $685 million tax increase on employers over two years. Econ 101, or maybe freshman common sense, tells you struggling employers faced with monumental tax increases will have to cut costs in other ways — quite likely in personnel. Passionate speeches aside from both caucuses, the bill passed the House 52-47 (party line vote) after 96-3 passage in the Senate.

The budget proposal: Too much spending ($28.1 billion over two years when the state doesn’t have that much money to spend). A message that we’re still not serious about education. No scholarship tax credit. A cap on charter schools at a time when everyone from President Obama on down is calling for more school choice. House Minority Leader Brian Bosma said this move would have jeopardized $275 million in education stimulus funding and disqualified the state from Obama’s $5 billion Race to the Top education grant fund.

I’ll stop there. There will be plenty more to come as those two dreaded words — special session — are now reality.