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10 Days of the Legislature

We are now in the last full week of the Indiana General Assembly.    This is where life gets interesting.  This is where lawmakers (Senate Republicans and House Democrats) get together in a room and try to negotiate differences in legislation that has passed out of both chambers.  And hanging over their heads is the spectre of of Governor Mitch Daniels.  As far as I am concerned, there are only three real issues lawmakers will have to get resolved if they don’t want to stay late: the budget, unemployment insurance and the Capital Improvement Board.  

IB wrote about the CIB yesterday, so today we’ll just focus on the budget and unemployment insurance.

The Budget

  • The chambers will have to compromise over a House plan that budgets for one year and a Senate plan that does two years.  Speaker Pat Bauer has said his priorities were jobs and education, while on the Senate Republican side they want to preserve the surplus as much as possible.  A new factor into the equation is the state revenue forecast released Friday which was not as bad as it could have been; showing the state down about $830 million, not as bad as the $1 billion as originally thought.  However, lawmakers are skeptic because they’ve been down that road before and the numbers have been wrong and the state was in a deeper whole than thought.
  • I think on the budget, Senate Republicans get a slight upper hand, because of the economic stimulus dollars which is shoring up a lot of programs right now.  So education is fully funded.  Their hope is that the stimulus will provide a two-year stop gap in the shortfall and by 2011 the economy will have turned around.  It is somewhat wishful thinking, but it works for now.   The real question is will the Governor go along with the program?  Right now, I don’t think so.  I say that in part based on an interview I did this morning with State Budget Director Chris Ruhl who said the administration will not be afraid to keep lawmakers here past their April 29 adjournment date if they don’t pass an acceptable budget and unemployment insurance plan.

Unemployment Insurance

  • With Indiana’s unemployment rate now averaging 10-percent, you’d think that would be motivation to get a working plan in place.  However the conference committee that was supposed to be working on this hasn’t really met in the past week or so.   Democrats don’t want benefits cut, Republicans don’t want the system to go belly up any further.  Since these sides aren’t meeting, and we’ve only got a few days left, I would not be surprised to see the federal government step in and take over Indiana’s unemployment fund, because lawmakers failed to act and get past their own differences.

Life is going to be fun for the next few days.

  • Shorebreak

    What jurisdiction does the federal government hold over Indiana unemployment insurance? Also, what gives them the right to pay Indiana unemployment using loans that would impact non-Indiana residents? Should some family in Florida be forced to share in Indiana’s unemployment costs? And if Indiana allows, it, does that obligate Indiana residents to reciprocate and pay the fedral unemployment bill for other states?
    .
    Isn’t all of this much more than we should be willing to pay as a result of Fed monetary manipulation and SEC refusal to act on banks who are suffering because their unregulated multi-trillion dollar derivitives ponzi is now collapsing?
    .
    There’s a huge hole in the bottom of this ship and nobody has launched the lifeboats. Instead of working to help the passengers, the crew has instructed everyone to pony up and start bailing so that the ships owner can salvage what’s left before it goes under.

  • Taxpayer 834512

    Very tough act to follow, but to pound one of SB’s nails further: In the theoretical seperation of federal and states rights, our marvelous state assemblymen (who have been known to whine about this would-be seperation just a bit), are going to throw-up their arms, adject their responsibility, cry, “No Mas”, and NOT EVEN MEET in an attempt to resolve unemployment? Let me make a wild, random, haphazard guess: It’s perceived that a vote on this issue might possibly make a difference in their reelection chances, already better gerrymandered than if they’d used moats and brick walls.
    .
    But, why would we think that some how, some way, just maybe, they’ll find a way to go from, “Golly, gee…don’t know how we’ll fix that one, Mortimer” on umemployment insurance, to some how, some way (amazing how these things happen), bailing out our beloved CIB.
    .
    Just watch.
    .
    The Indiana Assembly- STILL the best assembly money can buy!

  • Taxpayer 834512

    Puleeze try to remember next election day what your state assembly left on the table: property taxes, about everything re the (bipartisan) Kernan-Shepard recommendations, lobbyist reform (imagine that), illegal hiring, redistricting (HA!), the ombudsman legislation…….
    .
    Regardess of your political stripe, you can probably find something that merited enactment more than sugar cream pie.

  • Shorebreak

    And with regards to budget planning (one year v. two years?), who the heck are we dealing with here? Dumb and Dumber? When I was three years old I knew that if I didn’t time things right with my brother on the see-saw, one of us would either be left hanging in the air, or hitting the ground too hard on the way back down.
    .
    If anyone here is truly sold that this “one year v. two year” issue is simply a matter of circumstances that needs to be overcome, I’ve got some great oceanfront property for you in Iowa. If I planned a project budget like that without coordinating cost with other implementation teams, I’d be tossed out on my ear as an idiot. We’ve either got idiots running things, or someone is throwing a wrench in the works at taxpayer expense. Either way, they need to be removed.

  • Wayne Kirk

    Shorebreak: I agree. Their (Mayor, CIB, and the Indiana Legislature) projections are based upon an unrealistic figure. I believe the economy is going to get a lot worse in the next couple years which will further blow away most people’s projections. We can sell Hope all we want like President Obama, but that will never bring home the bacon when investors trade long term gain for short term profit. Volatility is too high in the marketplace which one must consider looking at the marketplace with making focused short-term investments based upon technical analysis and combine the fundamentals for insuring against future viability.
    .
    The so called “very lucrative” investment for enhancing the convention business downtown has turned out to be a very costly burden for the taxpayers.

  • Think Again

    Shore, we’ve done biennial budugets for over 100 years. They’ve worked pretty well, but: we’ve never faced this kind of income pitfalls.

    I’d favor a one-time one-year budget, with reopeners next year ONLY for income. Or, if income isn’t up, cuts in existing programs.

    And here’s an ugly little secret that makes biennial budgets tougher for schools: by law, and it’s a good law, any contracted employee must be given notice of potential non-renewal in Feb., for the next school year. Biennial budugets are on calendar years; school budgets convert to calendar, but they operate on school year (Aug-May).

    So, as an example, your school district’s 2009 budget included money for parts of three different calendar years. It’s nuts.

    And the people charged with putting together the guts of these budugets? School administrators, in the centrla office, who haven’t had a coherent common sense fiscal idea in their freaking lifetimes. Reality is not their strong suit.

    A one-year budget this time could give us much more information to help prepare a candid 2010 budget.

    Just a thought.

  • Robert – NW Side

    Shorebreak, the scheme began in 1909, and came to fruition in 1913 with the passage of the Income Tax and the Federal Reserve.
    -
    Recall that the tax was sold to We the People as only embracing about 1 percent of the population. Look at it now.
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    Since the monstrosity known as our NATIONAL (no longer federal) government began collecting tax dollars that should have stayed in the States, the States must now prostrate themselves before our National government and beg for crumbs.
    -
    I believe this was by design as a means to circumvent the 10th Amendment to the Federal Constitution.
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    Once you accept the government bribe, you have to dance to their tune.
    -
    Bye, bye, State’s rights.

  • pascal

    Mitch may be the only adult in the building.

  • Shorebreak

    pascal – Mitch is the only adult in the building? Mitch who?
    .
    The “National ID Card Mitch”?
    .
    Or is that the “sell infrastructure for short-term gain but long-term citizen cost Mitch”?
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    Maybe it’s the “Take the Stimulus Package Mitch” who agrees to allow a growing national government to have increasing scope over our lives?
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    Or perhaps it’s “Martial Law Mitch” who allowed federal forces to conduct martial law drills in Indiana towns and cities?
    .
    Which Mitch is the adult in the room? I need to know, so that I’ll know who to talk to when I have new ideas on increasing federal control over Indiana citizens, if I need to find a way to bring foreign corporations into control of state infrastructure, or if I just need someone who’ll fold up and bend like a wet pretzel when someone wants us to conform to federal and international agreements.

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