Thursday, April 16, 2009

HB 1604 - CIB bailout bill - fiscal impact analysis

The Legislative Services Agency (LSA) does a fiscal impact analysis of all bills before the State Legislature. Here is what the LSA considers the new taxes proposed in HB 1604, if implemented, would generate for each of the next three years.

The LSA leaves the revenue prediction for parking fees as 'indeterminable'. The total revenue for all remaining tax increases combined are:

2010 = $19.2 million
2011 = $23.5 million
2012 = $26.8 million

The CIB claims they need an additional $48 million annually to make ends meet. Even if you support the claims of the CIB and the tax increases, this still leaves a sizable gap in revenues.


Downtown Indy said...

This is why I am skeptical of this latest dip into my pocket. It leaves the distinct impression they'll have to do it again next year. It's the old 'frog in a pot of hot water' trick. They heat it up a little this year, just enough that most won't notice, a little more next year and so on. Before you know it the pot's boiling but then it's too late to hop out - you're cooked.

Had Enough Indy? said...

Downtown: you have an excellent analogy with the frog. But, once in a while its the politicians who find they have been the ones in a pot with heating water. It happened two years ago with the property taxes. If the Council has to vote on tax increases to bail out sports teams, it could very easily happen again.

The whole system of propping up the hospitality/tourist industry needs a thorough study. At some point they must be able to stand or fall on their own. And that industry should not be used as a thinly veiled excuse to keep sports teams in Indianapolis for the enjoyment of a dwindling few.