Ballard Unveils C.I.B. Funding Proposal
THIS IS THE FULL VERSION UPDATED AT 3:50 P.M.
With a little more than two weeks to go in the Indiana General Assembly, Indianapolis Mayor Greg Ballard unveiled his plan to shore up the $47 million operational shortfall.
The plan includes the following…
- Increasing the local alcohol tax and expanding the professional sports district ($20 million)
- Contributions from the Colts and Pacers ($10 million)
- Increase in the hotel and motel taxes ($4 million)
- A two-percent increase in the car rental tax ($2 million)
- Increase the ticket tax 6-10% ($6 million)
- CIB budget cuts ($8 million)
Ballard hopes the tax increases can be sunset once the Marriott and Convention are brought on-line, as well any revenue from the Pacers once the NBA renegotiates its contract with the player’s union. This actually makes sense because Ballard has a reputation for reducing taxes after he returned a portion of the County Option Income tax which the city did not need.
The Mayor also says he did not want to raise the food and beverage tax because those would be too broad and hit too many families. There is no word yet on who will sponsor these proposals.
April 13th, 2009 at 2:31 pm
I will purposely drive out of the county for my alcohol purchases from now on rather than give a dime more to either of those two stadiums built for billionaires who receive far more from them than we do. Hamilton and Johnson County are not too far to drive when I need to stock up once a month.
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Also, will the Mayor’s plan make our hotel tax the highest in the country?
April 13th, 2009 at 2:58 pm
“Read my lips, no new taxes!”
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Uh huh!
April 13th, 2009 at 3:17 pm
Hey Wilson…Ballard has a long way to go to beat Peterson’s record of lying to the taxpayers. Unfortunately, Ballard doesn’t have the stones we thought he did. I’ll take him over Peterson anyday though. At least he’s not advocating we continue to secretly borrow operating costs from the bond bank. That was what Peterson did to us and a big reason why we find ourselves where we are today…a result of Peterson’s very bad decisions.
April 13th, 2009 at 3:56 pm
I think what’s key here is that these is the Mayor wants to make these taxes TEMPORARY measures.
He has a record of returning the taxpayers money already, so I don’t doubt his word.
April 13th, 2009 at 4:04 pm
I get a laugh when I hear “temporary” tax. No one is going to believe that. The first F&B tax was “temporary.”
The name of the Republican council member sponsoring such tax increases needs to be someone not planning to serve more than his or her present term in office.
April 13th, 2009 at 4:15 pm
Abdul AND Ogden both left correct remarks. Good to see tax is temporary.
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I still plan to go outside the county for alcohol and car rentals should this tax INCREASE pass.
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Ballard FAILED to stand up to the Colts and Pacers. $5 million each is NOTHING!
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So does that mean we’ll give the Pacers $10 million instead of the $15 million Simon wanted and call it a $5 million contribution from the Pacers?
April 13th, 2009 at 4:33 pm
Melyssa, let me assure you the tax won’t be “temporary.” When has a “temporary” tax ever been increased.
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We had a temporarly 1% F&B tax to pay for the RCA Dome. The tax was not paid off and the 1% tax never went away.
April 13th, 2009 at 4:38 pm
Paul, I tend to believe you…however, Ballard was not in charge then. I judge him after I see that tax increase stay.
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On the other hand, I want to know if we’re going to give the Pacers $10 million and say that they ponied up $5 million (instead of giving them $15 million).
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If our mayor gives either one of those billionaires a penny, I’ll do everything I can to see to it he is not re-elected.
April 13th, 2009 at 4:44 pm
…or the Pacers and Colts could charge an extra $25 per ticket and this wouldn’t be an issue. Have the people who use the stadiums actually pay for them?! What a novel idea!
April 13th, 2009 at 5:00 pm
Melyssa, the expiration of any tax will be long after Mayor Ballard went out of office. So it won’t even ben his call. Not that Ballard has a problem turning his back on taxpayers. He seems very good at that.
I’m wondering who the poor sucker is who will have to try to carry this through the council. That person can kiss their political career goodbye.
April 13th, 2009 at 5:01 pm
Interesting…
I wonder who will be the GOP sacrificial lamb on the Council who will sponsor this plan?
I understand that there are few good options in dealing with this mess created by a previous administration, however, like it or not, #2/Wilson is absolutely right-and somewhere, Ed Treacy is salivating over not only this plan, but also over who he’ll back to challenge Ballard and any GOPer who will support it. Sad but true, along with the pious/hypocritical demeanor of the Democratic members of the Council who WONT support it..
And so it goes
April 13th, 2009 at 5:10 pm
I never thought I’d see the day when Mayor Ballard would pick supporting billionaire campaign contributors over the people of Marion county. But that’s exactly what he did.
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Abdul? Do you recall what you once said were the necessary conditions to bring about the election of a Libertarian mayor in Indianapolis? I think it had something to do with billionaires getting tax money, didn’t it?
April 13th, 2009 at 5:17 pm
Colts and Pacers Support Tax Increases on Peasants
Guess they think the public is stupid enough to believe a $47 million tax increase a year and agreement to pay $10 million more in Pacer operating expenses a year some how equals a $5 million contribution by the Pacers?
Let them eat cake said Jim Irsay and Mel Simon. Only poor people pay taxes.
April 13th, 2009 at 5:25 pm
“Increasing the local alcohol tax and expanding the professional sports district” amount to encouraging vice and diverting revenue from taxpayer needs. If, these actions were ever ethically sound to ask of citizens in the present economic climate, wouldn’t we want the benefits to help a wider demographic of citizenry? Why aren’t we going to this trouble to fund hiring police, mentoring teens, fixing sewers, upgrading parks, and tearing down foreclosures? It’s really more important to jump through hoop after hoop for pro teams instead of doing with college, minor league, or high school sports, while taking care of the basic needs of our city?
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If the owners, hospitality industry, patrons, and media can’t pay for it, then it’s very unfortunate, but neither can the taxpayers of the city and state.
April 13th, 2009 at 5:49 pm
Ballard can’t even balance a budget…he has taken this city into such deficit spending that all is going to crash soon……they can’t even feed the dogs at the Animal Care and Control every day because they dont have enough dog food……can’t wait to see who the republican sponsors of this are going to be/
April 13th, 2009 at 6:24 pm
We need to treat OUR venues as OUR property! Stop giving parking, concession stand revenue, and event revenue to the billionaire Simon’s or Irsay!
Let’s take what is ours and use the revenue to pay for the venue!
April 13th, 2009 at 7:44 pm
We’re still paying the ‘temporary tax’ we got hornswoggled into for the Hoosier Dome.
April 13th, 2009 at 8:15 pm
FYI..Hearken back to the Indy Star’s March 6th article (pg.A9):
“Indianapolis now has the ninth-highest taxes on food and beverage in the country at 9%. An increase in the tax would put it at the 2nd highest, equal to Washington, D.C., and just behind Chicago. This option would bring in the most money for the CIB, raising $19 million per year.
Boosting the inkeepers tax by 1% pt.would produce $4 million and make the city first in the nation on that front. Increasing the 16% tax on hotel rooms would tie the city with convention competitors Cincinnati and Houston.”
April 13th, 2009 at 8:15 pm
John…”hornswoggled” should be a real word!
April 13th, 2009 at 8:54 pm
My friend Abdul, the only solution the people want is for the CIB to go bankrupt and then our city can renegotiate the contracts with the Colts and Pacers. I voted for Ballard, but if he’s going to raise my taxes, he can find a new job.
April 13th, 2009 at 8:56 pm
My only complaint would be to double (or even triple) the ticket tax. 20%-30% increase would suit me fine. Abbie, look at who is buying the Colts and Pacers tickets. Reduce or drop the alcohol tax rate because we will all need a drink when this is said and done.
April 13th, 2009 at 8:58 pm
I’ll be at the tea party folks. We must have a talk about this CIB crap during the protest. I’ve paid taxes in this damn city for years and Mayor Ballard wants to put his hands in my stinking wallet, I say resign you coward or we find someone to replace you when voting season comes around.
April 13th, 2009 at 9:15 pm
Indianapolis is Broke
http://www.youtube.com/watch?v=_uBXk5dcc1s
April 13th, 2009 at 9:56 pm
InDglass, I enjoy and attend Colts and Pacers games when I can afford them–which is about once every two years. I wouldn’t mind an affordable ticket tax. $25 is a bit excessive.
Paul is right. The original F&B tax was to be retired once the Dome bonds were paid off. It hasn’t been. Like a cancer, it’s been increased and expanded into neighboring counties, at Mitch’s behest. Stage 4. No remission or chemo in sight. Call Flanner and Buchnan–the patient is about to die.
Ballard’s cafeteria-approach seems to have it about right, tho. I’m wondering, Abdul, if the mayor would’ve announced it if ther weren’t sufficient lgislative support. That would be kinda silly, wouldn’t it? At this late stage, publicly floating a dream is not appreciated by the Lobbied 150. Not that anyone should work overtime to appease those fat bastards.
I can’t wait until Sine Die. Send these overpaid goofs back home.
April 13th, 2009 at 10:30 pm
Melyssa, it IS a real word
http://www.thefreedictionary.com/hornswoggled
April 13th, 2009 at 10:34 pm
One thing I’ve consistently observed over many decades – a tax hike never solve any fiscal problem. It just creates a new one, or it makes the same problem bigger, a few years later.
April 14th, 2009 at 1:09 am
There is no guarantee that upping the alcohol tax and expanding the professional sports district will bring in 20 million. Maybe the CIB should just give Lucas Oil back to the state since they own it and let them take care of it.
April 14th, 2009 at 1:10 am
As for the tax going away! Yeah right! Where did the mayor stop for drinks before his porposal?
April 14th, 2009 at 5:45 am
People, if you don’t like this, you have to call your city-county councilman, state representative, and state senator- or you’ll likely get it. Your choice.
April 14th, 2009 at 6:11 am
The best thing we can do is to stop eating out. There is no other way to tell the lawmakers (at both the local and state level) that we are sick and tired of their nickle and dime taxes. The #1 problem here is that small sports market teams _demand_ they make almost as much (or as much) as large market teams. If Irsay wants LA type income, then he and other need to move to LA.
So, do your best to not eat out. If you just have to eat out, try to cut back as much as possible (start taking your lunch every day, etc.). Next, try to cut back on how much you spend. Don’t eat at sit down restaurants and get your hamburgers and grilled chicken at fast food places. Depending on how much you eat out every year, you could literally save thousands of your own dollars while also sending a strong message that you are not going to pay these “voluntary” taxes.
April 14th, 2009 at 6:45 am
I’m as frustrated as you, Doe, but cutting back on dinner out, is already happening at my house, due to the economy.
Cut back more, and we hurt the restaurant industry, which is not at fault here. Although they’re good at whining. Waiters and kitchen staff all over town depend on our business, and they’re certainly harmless here.
Small-market sport teams are needed by the pro leagues as much as small-market cities want them. Otherwise, it becomes only a sport of major cities, and that won’t work.
I advocated a week or so ago, that Ballard lobby with other small-market mayors, to the pro sport commissioners and Congress. The anti-trust exemption now applies, inexplicably, only to baseball.
If the NBA and NFL could talk among themselves about strategies to halt these runaway salaries, they have some hope for the future.
Otherwise, the Lebrons of the world will continue to demand more than they’re worth, and someone will pay it. LeBron is worth a ton, but not as much as he’s getting. Whatever he earns in endorsements is certainly fair game, but if there were legitimate salary caps in place, things would change. Caps can’t realistically happen without owners talking among themselves, and the anti-trust laws prohibit most of that discussion.
One critical element of business truth has been removed from most pro sports owners’ P&L statements–venue cost. If the arena costs too much, they recoil and threaten to move or shut down. Sure, it’s juvenile, but it’s worked too often nation-wide.
Nobody wins in that scenario.
April 14th, 2009 at 9:33 am
I remember back when the star and blogs here and around Indianapolis was full of people speaking in favor of the new stadium. What happen? I have not seen such post of late. When it comes down to the bottom line, everything is great until the bottom line; you have to pay for what you get. Were there hundreds of protesters lined up when the city was signing the contract with the colts? No. But now you are ready to throw Irsay and the colts out of the frying pan into the fire. When the first Market Square area was in the planning stages the star quoted me as saying, “Is this downtown building that the taxpayers will have to pay for but most of us will never use?” That was when you had to call or write the Indianapolis star. So now here we are several years later and it comes down to pay the piper now. I will tell you the same thing smokers were told the last few weeks. If you don’t like the tax on alcohol here, stop drinking alcohol. There is not one tax that Ballard mentions that would have an effect on me or my spending. Now that you have built a World class sport city, someone has to pay for it.
April 14th, 2009 at 9:35 am
And all of you are yelling, NOT ME
April 14th, 2009 at 10:04 am
I have to disagree that all people were in favor of financing the Colts and Pacers venture projects. I gave a speech years ago in Noblesville where I highlighted my concerns and the Republican-dominated County Council voted in favor of the tax increases. Throughout the years I have found myself more on the right path compared to our elected representatives and those waiting to have their palms greased with free taxpayer money and to think that others are still given any consideration in their plans makes me sick to my stomach.
However, there is a blessing here for all of us because the people are waking up from all avenues here in the good ole USA and as these tea party events build, more people will be joining this chorus to demand their government to reduce it’s size and return our money back to our pocketbooks.
Today, I am playing the financial FAS stock again knowing that the market is in a true bear-market run and also realizing that Goldman Sachs has fudged their numbers (dealing with fiscal year changes in reporting) to make it appear that they are more solvent. Just watch if the unemployment numbers continue to spin out 500K+ newly unemployed people and as more and more people are left deciding which bills are best to pay, foreclosures will continue to rise. I also see a continuation of the fall in gambling revenue, retail sales, and restaurant/alcohol sales. Isn’t it ironic that the bucket they Mayor and our other myopic representatives count on in generating revenue will eventually fall short? This is going to lead to some very interesting times.
April 14th, 2009 at 10:16 am
You all keep screaming tea party? Well guess what? The tea party is about federal issues, not our local. In fact, most of the people at the tea party couldn’t tell you what the CIB does. Most of the people going to the tea party can’t give you the name of the their state representative, their state senator, or their city councilperson.
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The State House Revolt on 3/25th spent a lot of time focused on the CIB issue. That’s when you should have showed up if you didn’t.
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It is too late for our federal government and we’ve got to stay focused on state and local issues where we have a chance of applying enough pressure to get our representatives to do our will before the will of billionaire campaign contributors like Ir$ay and $imon.
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The tea party folks don’t want other groups involved or anyone’s message but theirs (which is a good one, but too late). The tea party message to the federal government is to stop spending immediately, undo the bailouts already in law, and obey the constitution. Yeah, like any of that will happen.
April 14th, 2009 at 10:20 am
Attagirl, Melyssa–focus. I knew you could.
April 14th, 2009 at 12:00 pm
Got to crawl before running laps. The statehouse got people out and into the den of the beast, participating as citizens. Wednesday is no different. Yes, it’s more Federal with fewer issues- but it’s still about taxpayers getting off the couch and into a public vigilance that’s been incredibly lacking. You can say it’s too late. But, as long as the facts are on you side, you’ve got someone to recite them, and still have an audience- I think things eventually turn. Maybe not in our lifetime.
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Thanks to Melyssa and the other public and non-public figures that provide momentum. See you Weds.
April 14th, 2009 at 1:22 pm
I don’t think I’m going to go to the tea party. My being there will not make a shred of difference. I’ll show up on Thursday at the City Council CIB meeting instead as my civic duty this week. I want my time to count for something.
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As individuals gathered in LOCAL protest we have much more power to stop tax increases that directly affect our city than we do getting the federal government to do anything.
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Thousands will show up tomorrow where they won’t make a difference in the federal government’s actions they protest. Conversely about 6 will show up for the non-glamorous CIB meeting where they CAN make a difference.
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The sheep are too stupid, selfish, lazy, and uninformed to know better. They don’t care enough to invest the time learning because American Idol is on tonight.
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The government counts on our citizens to be sheep. They count on the sheep to be led to a tea party, but not to the CIB or the city council meeting.
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I went to a tea party planning meeting. I asked people at the tea party planning meeting who their legislators and city councilors are and most did not know. They were clueless about the CIB. They are the dumbed down masses being led by highly paid mainstream media heads like Glenn Beck who only months ago despised Ron Paul (and now conveniently embraces).
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I have people from my life call me now to tell me how excited they are about the tea parties (like I have anything to do with it). Yet they still don’t care to attend the events and meetings where they CAN make a difference. Many of my old friends are sheep. They think they are “awake” now because they are going to a tea party where they won’t make a difference.
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I don’t like being right about this, but I am.
April 14th, 2009 at 1:40 pm
I disagree Melyssa…
Tomorrow’s event will be great! I’ve been watching the events across the country and it appears that many people are shedding their affiliations with both the Republicans and Democrats and are now calling themselves “Independent” which is a great positive. Libertarians are the true voice of America no matter how you shake a stick at it for we represent Liberty…freedom. We represent faith in the individual which has been transferred to faith in Government and now that people have a taste of what more government does, it has a very bitter aftertaste that forces people to impulsively spit them out.
More than ever, this is the time for Libertarians to be active and involved in their communities for the people will notice. I have been a Libertarian for fourteen years now and have seen the LP grow and become more professional and focused. Tomorrow is a very important day here across the USA and this is an excellent opportunity to build relationships and I hope you are there with thousands others as we celebrate the vision our founding fathers have given us.
April 14th, 2009 at 1:52 pm
Wayne, I hope YOU are right. Randomly ask people who their local representatives are and they won’t be able to tell you.
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I’m not going. Sorry, but my being at a tea party won’t make a difference and I’d rather spend my time where I can make a difference this week…the boring, unglamorous city council meeting on Thursday at 6pm in room 260.
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The sheep won’t be there. Heck, most at the tea party couldn’t tell you where the city county building is, let alone what the CIB does.
April 14th, 2009 at 2:25 pm
I’m glad for about ANY civic gathering that’s issue(s)-centric & not party-in-lockstep or oozing over the next political messiah. People that may not yet know all their elected officials, but have finally perceived a need to turn-off the DVD and stand-up for something definitive are the ones we lack- with due and genuine respect to the diehards.
April 14th, 2009 at 2:57 pm
Why do you guys think the MSM is promoting the tea parties? Think really hard about that. Think about who controls MSM and why they would let that happen? That should bother you.
April 14th, 2009 at 4:00 pm
Melyssa….Glenn Beck references? He has no credibility.
April 14th, 2009 at 4:49 pm
I think spending money we don’t have is madness, on any level of government. I can’t get radio reception at the office for any MSM & busy raising kids at night. If going billions and trillions in debt is a great idea, then I confess, I’m a certified nutcase.
April 15th, 2009 at 12:07 pm
For anyone who wants to know the real dope on the stadium, read this courtesy of Brian Howey…
INDIANAPOLIS – The headline in the May 4, 2005, edition of Howey Politics read: “Mitch’s Triumph: The Devil’s in the Details.”
Now, four years later – with the Indianapolis Capital Improvement Board facing a $47 million deficit – the Devil is back at the Indiana Statehouse where a bailout of the CIB is underway. The remedy, as brought to you by Senate Appropriations Chairman Luke Kenley with another on the way from Indianapolis Mayor Greg Ballard today, is a statewide tax hike on beer, wine and liquor (which have been unchanged since 1981), increases in Indianapolis hotel, food and beverage taxes (again), and a higher tax on tickets to CIB stadiums.
There is considerable doubt that the Kenley plan will pass in its current form when it’s heard on second reading next Monday. This potential implosion sets the stage for an Indianapolis casino, or at the very least a short-term bailout by legislators. Taxpayers are already numbed by the stunning array of government rescues from Wall Street to Detroit. Statehouse sources tell HPI that their focus has been on the biennial budget and the Unemployment Trust Fund, though Gov. Daniels is monitoring the Senate discussion and wants to be helpful.
That this mess – amid the deepest national recession and bailout mania – is one where the seeds were planted four years ago.
In the April 28, 2005, edition of Howey Politics, CIB President Fred Glass – now athletic director at Indiana University – said he was “worried” about the CIB “going bankrupt.”
“It’s all in the hands of the legislature,” Glass said. He had taken exception to a Goldman Sachs report that surfaced at the 11th hour with Sen. Kenley and then House Speaker Brian Bosma. Based on that report, Kenley, Bosma, then-OMB Director Chuck Schalliol, and Gov. Daniels’ chief of staff, Harry Gonso, concluded that Indianapolis Mayor Bart Peterson had inflated the annual tax intake needed to fund what would become Lucas Oil Stadium. Peterson and Glass had used $70 million that UBS had recommended; Goldman Sachs recommended $54 million. Kenley recalled the numbers ranging from $72 million to $45 million in the final stages of the negotiations.
On April 17, 2005 Glass and Peterson concluded that they would never get their stadium legislation through due to Gov. Daniels’ power play “out of the blue.” Daniels had decided in early April that none of the existing plans would pass and reluctantly got into the game. With the GOP controlling both Houses, the Peterson administration didn’t have the votes. The state would take over the stadium as Peterson painfully ceded control, hoping that he would at least get his IndyWorks program through. “Try as I might on that, responsibility had to follow authority, whether it was with the city or state,” Glass told Howey Politics. “So what I concluded is the state would never agree to anything and the project would die. They needed to have it all. That was my personal conclusion.”
On April 22, 2005 – a week before sine die – Peterson said, “As customary with projects of this type and Bond Bank financing, the CIB would receive the newly authorized revenues and use those revenues with existing CIB resources, to pay all debt service to meet the agreed project budget and pay operations and maintenance for the project.” Senior administration sources tell HPI that while the governor became engaged on the stadium issue in early April, that was the first time the operating expenses were mentioned. Daniels had seen the other plans flag and he was more interested in the Indiana Convention Center expansion.
Glass had said the same thing in the April 27, 2005, edition of the Indianapolis Star. However, an April 4 Star story by Matt Tully noted that Peterson had “seemed to frustrate some members” of the Senate Tax and Fiscal Policy Committee when the mayor agreed “the project could be financed at $53.3 million a year – about $15 million less than he initially asked for.”
Daniels and Bill Oesterle, who headed up the administration’s stadium effort, were honked by Glass’ “bankrupt” comments. “There was almost a $20 million a year difference,” Oesterle told Howey Politics. “The governor didn’t talk about the stadium until five plans had been aired. He didn’t get involved until it was clear it wouldn’t go anywhere.”
On April 30 – after sine die – Daniels said at a press conference: “Why did they (CIB and Peterson) ask for hundreds of millions more than it turns out was really necessary? What were they planning to do with that money? I didn’t know. We only discovered in the last week or two they were planning to borrow the money for operation and maintenance. That didn’t happen at Conseco. It didn’t happen at the (Hoosier/RCA) Dome. It didn’t happen … ever. That’s like having your mortgage covering your grocery money or your car loan to cover your gas and oil.”
The problem with that statement is that the Hoosier Dome – which was completed in 1983 – did have maintenance and operating costs funded. The Colts wouldn’t arrive until 1984.
Kenley told HPI on Wednesday that he remembered a very intense 72 to 96 hours prior to sine die. “When we got engaged, the state was being asked to put money in,” Kenley said. “We took control. State was being asked to pay a substantial amount from doughnut counties. I remember saying, ‘Look, we’ll help you do the capital project and everything else will be outside of that.’”
Kenley remembers telling Glass on the operating funds, “State legislators would have a fit for contributing state dollars for a Marion County facility.” Kenley said that it was during the 11th hour that Glass pressed for the operating funds. “We were stunned by that statement,” Kenley said. “There was never any discussion on operating funds.”
Kenley said he asked Glass how much it would cost to maintain and operate the facility. He said Glass told him, “We don’t know. Could be $6 million. $10 million. We won’t know until we get it up and running.” Lucas Oil Stadium would have more than double the number of restrooms and concession stands, more escalators, more space to heat and cool. Within three months, Glass and the CIB would sign on to the financing.
April 15th, 2009 at 12:23 pm
“Why did they (CIB and Peterson) ask for hundreds of millions more than it turns out was really necessary? What were they planning to do with that money?”
Uh, cover their asses in anticipation of the problems they are now neck-deep in?