Pardon my bad grammar, but the Indianapolis Star this morning is reporting Colts owner Jim Irsay is saying the Colts have no intention of ponying up any cash to help cover the $47 million operational shortfall with the Capital Improvement Board.

He repeated the line that the Colts have “contributed” $100,000,000 to the building of Lucas Oil.  A claim thoroughly discredited here on IB when you look at the donation in context.

Irsay is correct on one point that the Colts are under no legal obligation to contribute anything, but as my lovely mother would say, what goes around tends to come around.  And it would be unfortunate if something ever happened to the Colts and they needed the community’s support because payback can and will be a real you-know-what.

I wonder if the Colts will participate in the 500 Festival parade this year?

Okay, everybody and his mom has offered up possible solutions to solve the Capital Improvement Board’s operational shortfall so it’s only fitting that Indiana Barrister (IB) gets into the act as well. And like any good comedian, I have no problem stealing ideas from others and improving on them.

1. Increase the downtown sports district to include Circle Center Mall, as well as the Westin and Marriott which are adjacent to the convention center.  This could easily generate up to $12 million in annual revenue.  Now I understand out-state lawmakers are not crazy about giving up that sales tax revenue, even though it would not exist but for the convention center and downtown Indianapolis, I think as the new hotel is brought on-line and the convention center expands, the state’s contribution can be phased out and the new revenue replace it.  If that is not an option, the state could withhold an equal amount of assistance to local governments.
2. Refinance some of the CIB debt obligation.  Republican Jeff Espich is proposing that.  Some estimates say there could be up to $26 million in savings. 
3. Ask the Colts and Pacers for a total of $15 million in contributions.  Don’t mess around with $10 million, ask for $15 million.  If they say no, I would say fine and make their lives in Indianapolis as difficult as legally possible.
4. I would increase the ticket tax to 15 percent.  I would not raise the hotel or car rental taxes.  Since it is the events that draw the crowds, the users should pay for them.  And for people who think this is a real hardship, I would probably offer a tax rebate when filed with income taxes, but users would have to itemize. 
5. I would also allow Marion County, as well as every county to keep every dime if the County Option Income Tax it levies.  I have never been a big fan of allowing revenue from one county to go to another county.  My Illinois income taxes do not come to Indiana and vice-versa.  Since there is this aversion to anyone outside of Indianapolis paying for anything in the city, I am sure out-state Hoosiers would not want to engage in hypocrisy by taking money earned in Marion County.
6. Continue with the $10 million in budget cuts at the C.I.B. but I would increase the marketing budget by $5 million.  You can’t get conventions here if you don’t promote the city.

By my rough estimate, my plan easily generates the money needed to cover the C.I.B. and then some.  And this is done with keeping the tax increases down to a minimum and put solely on the people who use the facility.  I welcome your thoughts as always.

Indiana lawmakers are feeling more positive that a solution can be reached on the Capital Improvemerddnt Board, however they aren’t so sure if the Indianapolis Colts will contribute.  I spoke to three lawmakers on the CIB conference committee as well as Mayor Greg Ballard.  Here they are…

Phil GiaQuinta (3:35)

Luke Kenley (3:30)

Jeff Espich (3:25)

Greg Ballard (7:20)

I think they will be able to work something out.  Tomorrow I will offer up my own “solution” for solving the CIB issue.  Hey, everybody else is getting into the act so why not your favote political pundit?

Governor Mitch Daniels today called the budget lawmakers are currently considering unacceptable, but denied he was using a veto as a threat.  Daniels says the budget spends to much and leaves Indiana in a more vulnerable position down the road.  He says he wants to give lawmakers flexibility, but they need to be aware of shrinking state revenues.

Daniels also commented on the unemployment insurance trust fund shortfall, saying he prefers the Senate version over the House.

He also said the Capital Improvement Board issue must be addressed and the Colts and Pacers should “participate” in any solution.  He also chastised local lawmakers for shying away from tax increases as a possibility to solve the funding problem, saying if they want home rule, they can’t expect the state to come to their rescue.

You can hear all of those comments, and more in the following audio clips.

Daniels #1 (13 minutes)

Daniels #2 (13 minutes)

Although, the Indianapolis Colts are saying they never asked for a new stadium as part of a deal to stay in the city, the facts seem to indicate otherwise.

Here’s the excerpt from today’s post at the Colts website.

The Colts never asked for a new stadium. In 2004, the City of Indianapolis approached the Colts about the possibility of a new stadium, not the other way around.

If that’s true then why in a 2004 interview with RTV 6, did Colts Owner Jim Irsay said a new stadium will be needed sooner or later?

Negotiations to keep the Colts in Indianapolis may be skirting the issue of a new stadium, but make no mistake: In the not-so-distant future, the football team will try to get The key question, team owner Jim Irsay says, is when.

“There’s no denying saying that sooner or later, you have to have a new stadium,” Irsay (pictured, left) told RTV6’s Ray Cortopassi on Thursday.

The Colts have been negotiating for a new agreement with the city, saying their revenues are among the bottom third of the league. According to Forbes.com, the Colts ranked 27th out of 32 NFL teams in terms of revenue in 2002 (and 29th in terms of value).The team’s current lease at the RCA Dome runs into 2013, but the Colts could break it after the 2006 season if their revenue isn’t equal to or greater than the median in the NFL in two out of the next three seasons, beginning with this season.

And what about this excerpt from the same story…

Irsay points to the NFL teams whose revenues have soared with new stadiums. Of the NFL’s top 15 revenue-making teams in 2002, 13 had stadiums that either were built or significantly renovated within the past 10 years, Cortopassi reported.

“A new stadium, obviously, is … something we have to get to,” Irsay said. “I think a new stadium provides the additional luxury suites, club seats, tickets, et cetera, that allow the people who love football … to take more pressure off the political element, so to speak.”

Never asked for a new stadium, eh?  Sure you didn’t.  (Wink. Wink.)

Here is a statement put out today by the Indianapolis Colts.  If these guys aren’t going to contribute to keep Lucas Oil open, the least they could do is STFU.

Thursday,April 23

COLTS STATEMENT ON THE CIB

By Colts.com

Dear Colts Fans:

Much has been reported and communicated about the Colts over the past several months, including several statements which have been either misleading or simply untrue. We would like to set the record straight by sharing with you facts of the Colts’ financial contributions to the State of Indiana and the City of Indianapolis and the club’s significant investment in the building and on-going operation of Lucas Oil Stadium.

First and foremost, the Indianapolis Colts have not sought in the past, nor is the club currently seeking, any special favors from the CIB, the City of Indianapolis, or the State of Indiana.

The Colts never asked for a new stadium. In 2004, the City of Indianapolis approached the Colts about the possibility of a new stadium, not the other way around. The City’s need for an expanded convention center and desire to accommodate the NCAA for future Final Fours prompted its exploration of a facility to replace the RCA Dome. At no time did the Colts threaten to leave Indianapolis or otherwise “hold the city hostage.”

The Colts negotiated in good faith with the State and the City and eventually entered into a development agreement with the Indiana Stadium and Convention Building Authority (ISCBA), governing the construction of Lucas Oil Stadium, and a lease with the CIB, governing the Colts’ use of the stadium.

The Colts made a 30-year commitment to the community. Those written agreements, signed nearly four years ago, committed the team to this community for the next 30 years with no option to renegotiate, regardless of any financial downturns that might arise.

The Colts agreed to take the risk and responsibility to achieve financial success in Indianapolis. The new agreements also removed the financial guarantees for the Colts that existed in our RCA Dome lease that could have cost the city tens of millions of dollars on a regular basis. In essence, the risk of financial success in a small market has been shifted from the city solely to the Colts.

The Colts have been meticulous in meeting and, indeed, often exceeding the requirements of those agreements. We have contributed over $100 Million to the construction of the facility and it is simply untrue for anyone to suggest we don’t have “skin in the game.”

It is also important to note that, from the very beginning, Lucas Oil Stadium was designed to be a multi-use facility to accommodate many users, not just the Colts. Already, the stadium has successfully hosted many events having nothing whatsoever to do with professional football and many more are already scheduled for years to come. While we are immensely proud to be able to call Lucas Oil Stadium our home field, the fact of the matter is the Colts only use the stadium a maximum of nineteen days a year; and the facility is available for use by virtually anyone else the remaining 346 days.

Second, the Colts have been engaged in extensive dialogue, based upon facts and equity, with those leaders who are working hard to find a solution to the CIB funding shortfall. Jim Irsay has personally met with Senator Luke Kenley and Mayor Greg Ballard to discuss these matters. Our representatives have also been in frank, open, and continuing communication with the CIB and the financial leaders of the state legislature since this issue began to emerge early last winter.

Third, our understanding of the CIB’s history is that the CIB’s budget shortfall is neither new nor unexpected. In fact, only a relatively small portion of the predicted shortfall can be directly attributed to the increase in actual maintenance and operations expense required by Lucas Oil Stadium. What is particularly puzzling is that the shortfall appears to have only become a crisis when the CIB concluded it might be obliged to assume all the operating costs of Conseco Fieldhouse to avoid an early termination of the Pacers’ lease.

Fourth, the Colts believe recent criticism of its civic involvement to be unwarranted and unfair. We are extremely proud to have one of professional sports’ most comprehensive community outreach programs. While we are deeply involved statewide, we have not predicated charitable giving and civic involvement upon how much public acclaim the club gets in return. The Colts remain committed to that approach.

Fifth, the Colts’ commitment to the City of Indianapolis and the State of Indiana has also included providing an exemplary football team on and off the field. The club has invested heavily in recruiting players and coaches of which Indianapolis and the State of Indiana can be proud — on game days and all the other days they make positive contributions to our communities. There are no more positive role models than Peyton Manning, Gary Brackett, and Jeff Saturday. We believe the Colts’ record in wins as well as community leadership speaks for itself. In anticipation of this weekend’s NFL Draft, the Colts are preparing to make multi-year and multi-million dollar commitments to the next generation of leaders like those three.

The Colts remain optimistic that a fair and equitable solution will be found that assures the fiscal good health of the CIB, an organization that is very important to the long-term success of Indianapolis and the entire State of Indiana. We hope, though, that the public discussions of the issues will be based upon facts.

Sincerely,

The Indianapolis Colts

Senate Pro Tempore David Long seems to be getting impatient with Marion County when it comes to addressing the Capital Improvement Board shortfall.

The City-County Council is on record as opposing any broad-based tax increase to cover the CIB shortfall, however Long says the shortfall is predominately a Marion County problem and Marion County should solve it. 

He says the state is already contributing $16 million to the CIB and expanding the downtown sports district would add $6 million more.  He says local governments can’t complain about not having the power to make their own decisions and then try to run for cover when they have to make tough choices.

You can here the entire interview below as Long commenting on the budget and the state’s unemployment trust fund shortfall.

David Long

Indiana lawmakers are in a giant holding pattern on the budget, unemployment insurance and the CIB, so since there really isn’t anything to report right now, I figured I’d turn my attention to something else, last week’s tea parties.

It’s been a week or so since the tea party protests at Statehouse and around the country.  So I decided to do some follow up.  I decided to visit some local tea party websites to see what activity had been taking place.  What I found was little to no activity.

Indianapolis Tea Party – No activity since April 16.

Indiana Tea Party – No activity since April 18.

Boston Tea Party of Indiana –  No activity since October 21.

Now this doesn’t mean these guys aren’t going to do anything.  There are rallies being planned for the 4th of July, but you would think that the revolution would stay a little more active.  It will be interesting to see what gets posted in the next couple of weeks.

As Indiana lawmakers look for ways to solve the state’s unemployment trust fund shortfall, I have a thought I’d like to share with them.  Maybe the state should get out of the unemployment benefit business altogether.  Before you call me crazy there are some benefits to such a move.  The state gets a billion dollar albatross off its back,  employers no longer have to play collection agency and there is potentially more money in the pockets of workers.

Right now, the state’s unemployment trust fund has about a $642 million shortfall.    That comes in part from a more than $435 million deficit and $222 million benefit payout.  If you think Indiana is bad, try Michigan with a $1.9 billion shortfall or California with a $1.7 billion deficit.    These are dollars that could go towards other state programs like education or be returned to businesses and taxpayers in the form of tax cuts.

For now lawmakers are looking at raising taxes on employers as a way to close the shortfall.  Raising taxes should always be a measure of last resort.  More taxes means businesses will have less revenue and the odds increase of having to layoff employees.  More layoffs means more unemployment  and with fewer people paying into the system, the shortfalls grow even larger.   Behold, the vicious circle.

Removing the government out of the equation the responsibility for unemployment will be put exactly where it belongs, on the worker.  Individuals should be responsible for their own unemployment insurance. By not having to pay unemployment, the money would be transferred to the worker or the employer could use the funds to hire more workers.  And there is a big benefit for the self-employed who, if memory serves me correct, have to pay unemployment taxes, but can’t get the benefit.  Individuals could buy whatever plan that best suits them and rates would be based on how much of their income they want to have while they’re out of a job and how long they want the benefits to last.

For those of you think people won’t take their extra money and buy unemployment insurance, but instead pocket the cash, welcome to the world of individual choices and personal responsibility.  Those individuals will have to live with the consequences of their actions.   But like most people who buy life and car insurance, I think most of the population will be fine.  In addition, a new cottage industry of unemployment insurance providers will spring up, and ironically, employ more people.   

So if I was an Indiana lawmaker, once this crisis is over, I would seriously look a a plan to phase out Indiana’s participation providing unemployment insurance.   It obviously isn’t doing any taxpayer a whole lot of good right now.

The word on the street is that State Senator Theresa Lubbers will step down if she is appointed the State’s new Higher Education Commissioner.

Should she step down the two front runners for her job, based on my numerous conversations at a legislative cookout at the State Fairgrounds tonight, are Ann Shane and City-County Councilor Ryan Vaughn.

I called Vaughn tonight who declined to comment out of deference to Lubbers.  However he said if he did run, he would resign from his position at Barnes and Thornburg.