Allow me to be the last one to the party on this, but Indiana Barrister (IB) got some serious love from Chris Cillizza of the Washington Post.

IB has been named one of the Best State Blogs in all 50 states.  Also sharing that title were Frugal Hoosiers and Advance Indiana.

The Fix went through hundreds of recommendations before making the list.  We’re honored to have made the cut.   Thanks to my buddy Kevin who takes care of all the technical stuff here.  And thanks to all you for reading us everyday.

Indiana House Democrats are threatening to subpoena Daniels administration officials if they don’t the documents they say they need to pass a budget.

House Ways and Means Committee Chairman Bill Crawford this morning said he’s frustrated that he’s gotten very little data he’s requested from various state agencies in order to craft a budget.

Republican Leader Brian Bosma  did not think subpoenas were necessary and said he would help Crawford get whatever documents he needed.

This comes when a senate panel passed the first draft of the $28 billion spending plan by a vote of 10-2.

A plan to use of combination of user fees and taxes to close the Capital Improvement Board’s $47 million operational deficit may have come to a halt even before it had a chance to really get out of the gate.

Republican State Senator Luke Kenley tells me reaction to the plan unveiled last week has been very negative. He says the public doesn’t want to pay more taxes in the economy, there is a growing resentment towards the owners of the Colts and the Pacers and none of the stakeholders are crazy about ponying up more cash.

Kenley says Indianapolis Mayor Greg Ballard is looking at an alternative proposal, but until that plan is unveiled lawmakers need to keep something viable on the table even if it may not pass the Legislature.  

Some ideas that have been floated include expanding the downtown sports district to capture more state sales tax revenue, however that is not popular with some state lawmakers because they don’t want to give up that revenue. 

In addition, Sunday alcohol are not that likely, but Marion County may get a local option sales tax for alcohol similiar to the original state plan penny on a beer or glass of wine and two cents on a shot glass.

Kenley also acknowledged that public perception that there has been a lack of trust is a valid one.  And one result may be to reform in the CIB reporting its financial status.  Oddly enough, the CIB’s financial committee meets later today to outline more potential budget cuts.  

Kenley also says the Colts and Pacers need also be more open with the public.

Despite those challenges,  Kenley says he’s hopeful a deal can be worked out before lawmakers adjourn on April 29. 

You can hear my entire conversation with Senator Kenley by clicking the link below.

Luke Kenley’s Comments

As lawmakers try to figure out a way to address the Capital Improvement Board funding shortfall, I have a suggestion to help them out, privatize Conseco Fieldhouse.

We already know that it costs $15 million a year to run the Fieldhouse, at least that’s what the Pacers and the Capital Improvement Board are telling us.  And since neither entity can afford to run the place, why not just bring in a third party.

Mayor Greg Ballard’s office has been looking for privatization opportunities for a while and this would be something that would definitely put their efforts on the map.  

If Indiana can get a few billion bucks for the Toll Road,  the city should easily be able to get a few million bucks for Conseco and have someone else pick up the operating costs.  

And for those of you who say a private company is already running Conseco and can’t afford to keep the doors open, then maybe it’s time to get another private company to take over.

Your thoughts.

If anyone thought a sagging economy and high unemployment might be hurting Indiana Governor Mitch Daniel’s approval ratings they might want to think again.

According to a poll conducted last week by the Indiana Association of Realtors,  Daniels has an approval rating of 69 percent.  That’s up five points from September 2008.

His favorable ratings are 68-28, up 10 percent from September 2008.  And the number of Hoosiers who think Indiana is on the right track 50-42 percent, up three percent over last Fall.

61 percent of Indiana voters also say the poor economy is their most important priority.

The poll surveyed 600 likely voters and has a margin of error of  plus or minus 4 percent.

It’s nice to be back after a few days of lawyer school.  Here are my thoughts on few events that have, are happening or will happen soon…

Legislative Meltdown?

• Don’t be surprised if there is a total meltdown at the Indiana General Assembly over the unemployment insurance fund and the fact that the budget forecast revenues are worse than anyone thought.

I’m in Chicago today for a legal seminar and a couple other things, but I’ve noticed a repeated call for transparency for the Capitol Improvement Board.

As much as some people would like to think that it is a mysterious cabal that operates in darkness with robes and a pentagram, it really isn’t.   The meetings are public and anyone can  ask questions.  You just have to show up.

The CIB is a quasi-municipal board, which means even though the members are not elected, they are all appointed and there is oversight.   They have no authority to raise taxes.  And a copy of their budget and finances are available if you just ask for it. The meetings are not broadcast live, but they are replayed on Channel 16.

So contrary to popular, and usually uninformed opinion, there is no conspiracy here.  All you have to do is take some initiative and show up and ask a question.

By the way, you’ll notice the recurring theme here is called show up.  And yes, I do know when the next meeting is, but let’s see if anyone here can find out for themselves and I’ll see you there.

Indianapolis Mayor Greg Ballard has come under fire lately because of the way he has handled the Capital Improvement Board issue regarding Lucas Oil Stadium and Conseco Fieldhouse.   Some criticism I think is well-place, some is just over the top and ridiculous.

So I figured before I hit the road to Chicago for more lawyer schooling, I figured I would open the forum and ask if you were Mayor how would you close the funding gap?  However, just so people don’t spout off nonsense, you have to act under the same parameters as the Mayor.   So here are the restrictions.

1. You have no taxing authority, so you must go to the Legislature for approval to raise revenue.
2. The Colts have a 30-year contract that they are under no legal obligation to break.
3. The public does not want any tax increases.
4. Most of your Republican caucus opposes tax increases as well.
5. The rest of the state has no desire to help, even though downtown Indianapolis generates 25% of the sales tax revenue in Indiana.
6. Municipal bankruptcy is also not an option, because you are not bankrupt.

Have at it.

I finally had some time to work on the Indianapolis Colts’ $100,000,000 “contribution” to Lucas Oil Stadium.

The Indianapolis Colts say they contributed $100 million to building Lucas Oil Stadium.  It all depends on how you define “contribute”.

Let’s just say for sake of argument they did write a check for $100 million.  First of all the Stadium cost about $750,000,000.   Which meant the Colts only picked up 13 percent of the tab.

In order to break the lease on the old RCA Dome so the Colts would have a new place to play, the city paid the Colts $48 million, but the Colts don’t want to give up $5 million.

The Colts got $121 million in naming rights, but don’t want to pony up $5 million.

The Colts get about $41 million in stadium annual revenue, but don’t want to part with $5 million.

The Colts also get up to keep up to $3.5 million  for non-game events and the CIB picks up the operational costs of the Lucas Oil, but the Colts don’t want to pay $5 million to ease your tax burden.

They do pay $250,000 a year in rent and make reimbursements to the CIB to the tune of $800,000 to $1,000,000 a year.

So let’s do some math.  The Colts put in $100 million + ($250,000 x 30 years in annual rent payments) + (1,000,000 x 30 years of annual reimbursements) = $137,000,000 in total Colts contribution over the life of the lease.

Here’s what they got back.  $48,000,000 (lease payback) + $121,000,000 (naming rights) + ($41,000,000 x 30 years of annual revenue) + ($3.5 million X 30 years of non-game revenue) = $1.57 billion over the total life of the lease.

So the Colts put in $137,000,000, they get back nearly $1.6 billion and they don’t want to contribute $5 million a year ($150,000,000 over 30 years; less than 10 percent of their total revenue stream) and would rather see your taxes go up.

Oh and this does not even include a $74 million dollar loan the Colts took out a couple years ago to make that $100,000,000 contribution.  Which by the way, the Colts did not float the bonds on their own, they used the City of Indianapolis’ good credit to do it.  That means the $74 million loan is at the municipal interest rate of 5.9% as opposed to the market rate of 8-10%.  So they’ve saved millions in interest on your good name, but they don’t want to pay $5 million to help keep the lights on.

Way to go team.  I wonder if it’s too late to become a Patriots fan?

I’m doing some legal education classes today and tomorrow to keep my Illinois law license current, however during breaks I check my email.  Here’s what I got from the Indianapolis Colts.

STATEMENT FROM THE INDIANAPOLIS COLTS

FOR IMMEDIATE RELEASE

4/2/09

The Indianapolis Colts understand and are concerned about the current CIB funding shortfall as well as the financial difficulties faced by our friends at the Indiana Pacers.  We understand all too well the current economic atmosphere has made operating in this climate very difficult as we have had to make cuts ourselves.

We know the work of the Indiana General Assembly is always difficult and solving problems like the shortfall facing the CIB will be made more difficult because of the current economic climate.  The Indianapolis Colts will remain engaged with Senator Kenley and the leadership of all four of the House and Senate caucuses in seeking to find an appropriate solution to this situation.

Nevertheless, the work can only be effective if people are dealing with accurate information.  Thus, we feel it is critical that several misperceptions and inaccuracies about our contract with the CIB be dispelled.

Contrary to reports in today’s Indianapolis Star, the Indianapolis Colts have a significant financial investment of more than $100 million in the building of Lucas Oil Stadium, together with annual lease payments to the CIB of $250,000.00, and expense reimbursements to the CIB (which are currently in the neighborhood of $800,000 to $1,000,000 per year) throughout the life of our current contract with the City.  We pay those substantial sums for the right to use Lucas Oil Stadium no more than 19 days a year. There are many other significant financial sacrifices and commitments the team has made and will continue to make as we try every season to field a championship caliber team worthy of our fans, while living within the means dictated by our smaller market.  In short, contrary to the Star’s inaccurate report, we’ve already contributed a tremendous amount of money to the construction and operation of Lucas Oil Stadium and we’re contractually obligated to continue to do so for at least the next 26 years.

We remain optimistic that when all the facts and possible avenues to resolution are on the table, and considered in context, good people working together in good faith will be able to fashion a solution that’s fair and effective. We remain willing to continue our dialogue with the leaders of the General Assembly, within our own operational constraints and consistent with our principal commitment to field the best team possible—a team this City and this State can continue to be proud of both on and off the field.

Believe what you will, but I will show you how that $100,000,000 “contribution” is at best a half-truth.  I have to get done with school first though.  I’m headed back to class.  I’ll try to have something up by tomorrow mid-day.