Heim Votes His Conscience
By Mike Siroky
Pilot News
State Representative Steve Heim of Culver stood his ground and voted with his constituents Tuesday night.
He was one of nine state representatives to vote against Governor Frank O'Bannon's �Energize Indiana� plan.
It is on to the Senate and will likely have another run through the House. Heim hopes the fixes he cares so passionately about will be included.
The sticking pit is �securitization.� That means the bill, as passed, would require the state to sell bonds secured by future payments from tobacco companies received under the Master Tobacco Settlement Agreement. The goal is to raise $500 million that would be spent over the next 10 years on a variety of economic projects.
�That�s like a payday loan,� said Heim. �You�re behind, so you borrow against your next check and you never catch up. I had so many constituents tell me not to vote for this.
Heim said the increase in state debt would jeopardizes funding for several important health care programs, including HoosierRx, the prescription drug program for low-income elderly Hoosiers.
�These tobacco settlement funds were initially allocated to fund health-care programs and now the governor wishes to mortgage these funds to plug the state's current financial crisis. Tobacco securitization ties our budget to the uncertainty of the tobacco market and draws already allocated funds away from health programs. We were one of the few states to say we would set aside the tobacco settlement funds for heath care.
"The state of Indiana made a promise several years ago to use tobacco funds for health care programs, but this year the House is using much of the money for other purposes," said Heim.
"A few weeks ago, the House voted to use $200 million of tobacco settlement funds to balance the budget and today the House voted to spend $54 million per year for economic development projects. If we keep this up, there won't be anything left to spend on health-care programs."
Heim said economic development projects should be funded out of the state's general fund and that spending cuts could free up the necessary money.
"Indiana has a $23 billion, two-year budget," said Heim. "I find it hard to believe that we can not identify $50 million in spending cuts that could be used to fund the projects in the Governor's Energize Indiana plan.�
HB 2008 now goes to the Republican-controlled Senate, which is expected to remove the provisions of the bill that securitize the tobacco funds.
�The Senate is expected to produce an economic development plan that does not rely on securitized tobacco funds,� said Heim. �I look forward to voting on an economic development plan that incorporates the positive provisions of House Bill 2008.
�I will not borrow against the future to pay for today. No one questions the need to jump-start the economy. But increasing state debt and sacrificing critical health care programs is not the way to fund economic development,� said Heim.
�The economic development concepts within the bill are good. They did not have enough Democratic votes to pass the bill, so they allowed us to put in five Republican amendments. We significantly changed the bill. I voted for the amendments. I could not, in good conscience, vote for the bill.�
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