Indiana Economy Needs a Kick Start
HEIM TIME
(Editor�s Note: Steve Heim of Culver is the District 17 Indiana Representative in the Indiana House. The Pilot News has offered Heim column space whenever he wishes to write to the folks back home.
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As the 113th General Assembly convenes today, Indiana�s 150 senators and representatives will be facing many challenges.
Foremost among them are a moribund economy and a budget deficit that may approach $1 billion by June 30 � the end of the state�s budget year.
While the state�s economy and budget deficit receive most of the media attention, however, a bigger problem is lurking in the shadows.
Indiana�s economy has the dubious distinction of being the weakest in the nation. In 1988, Indiana ranked sixth in the nation in new job creation, but, by the year 2000 Indiana had slipped to 46th. In 2001, Governing Magazine ranked Indiana 50th in economic momentum. On a personal level, this means that about 135,000 Hoosiers have lost their jobs over the past two years, which has made Indiana the national leader in lost jobs, personal bankruptcies and mortgage foreclosures. To live in a state that has been saddled with such a negative image is frightening to many Hoosiers, but these statistics should motivate us to create permanent, exciting solutions to make Indiana the economic envy of the Midwest.
Another major challenge facing legislators this year is the growing budget deficit. Just a few years ago, Indiana was awash in cash thanks to a
tantalizing $2 billion surplus that was quickly depleted by a series of administra-
tive snafus and inflated state spending. In 2001, the governor let
a drastically out-of-balance budget become law without his signature.
Today, even after a record $1.5 billion tax increase that was signed into law last summer, Indiana1s budget deficit is approximately $750 million and growing.
Despite a sales tax increase (which you probably noticed popped up just in time for your Christmas shopping), a large tax increase on cigarettes and increased rates on riverboat wagering taxes, there is again talk of another tax hike. Some state officials claim there is no other way to handle the mess they�ve made of the budget.
However, I do not believe that raising taxes in tough economic times is ever the answer.
While the budget and economy are significant problems, the most difficult challenge to overcome is the leadership vacuum that currently exists in the state. Legislators from both sides of the aisle have publicly lamented the lack of leadership from Gov. O�Bannon�s administration, which is in its lame duck years.
While legislators from both sides of the aisle have the utmost respect for Lt. Governor Kernan, he, too, is a lame duck after announcing he would skip the 2004 governor1s race. In addition, the new Speaker of the House is known for his strong partisan tilt, which will not play well in the House where his party holds a slim 51-49 majority.
In short, effectively addressing the problems facing our state will first require establishing a strong bi-partisan working relationship in the House and Senate, which I am committed to doing.
Despite all of the negative news, there is certainly hope for Indiana. I wholeheartedly believe our great state will pull through its financial woes in due time and that we will be able to reverse the negative economic trends in our state. Many bills will be introduced this year to get Indiana back on the right track and I look forward to discussing many of those proposals in future columns.
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