Ind.: Governor Discusses Lottery

Daniels told reporters that he believed legislators should concentrate on the property tax debate when the short session starts Jan. 8.

"I think the agenda will be too crowded. We'll hold that," he said a day after lawmakers were at the Statehouse for their organization day meeting.

During the Legislature's last session, Daniels proposed leasing the lottery to a private operator for 30 years to raise money for a life sciences fund and a scholarship program for college students who stay in-state after graduating.

The Senate, which is dominated by Daniels' fellow Republicans, passed a version of the lottery plan. But he withdrew it in April after it stalled in the Democratic-controlled House, saying more discussion was needed on how to invest the extra money the state could potentially get for the lease.

Daniels initially said he expected the lottery lease to attract a bid of $1 billion plus $200 million in annual payments. But shortly before he pulled it, he said at least two companies were willing to pay the state more than $2 billion upfront plus $200 million in yearly payments.

Daniels on Wednesday also signed a bill lawmakers passed Tuesday endorsing his extension to this past Oct. 15 of the deadline for homeowners to apply for homestead property tax exemptions on their principal residences.

That bill also endorsed Daniels' decision to move back to Dec. 31 the deadline for counties to adopt local option income taxes aimed at freezing growth in property tax levies, for other property tax relief, and for public safety.

Last month, Daniels proposed a property tax plan that he said would lower homeowner bills by about one-third on average statewide and, to make up for the lost tax revenue, raise the state sales tax by a percentage point to 7 percent.

His proposal is aimed at addressing Indiana homeowners' complaints over property tax bills that rose an average of 24 percent statewide, with some areas seeing taxes double or triple.

Daniels' plan also would cap homeowner property taxes at 1 percent of a home's assessed value beginning in 2009, with limits of 2 percent for rental property and 3 percent for business property. He wants those caps amended into the state constitution.

Daniels said that he was not concerned by comments by Democratic House Speaker Patrick Bauer on Tuesday that passing the governor's proposed sales-tax increase will be difficult.

"I think the speaker expressed realism. I'm not the least bit pessimistic, and I don't think he is either," Daniels said. "It won't be easy to do this, but what I think his comments meant is that we're going to need bipartisan support."

Daniels said that over the Thanksgiving Day holiday weekend he would likely begin working on the State of the State address he'll deliver in January. He said he expects the speech will focus largely on the need for property tax reforms and related issues.

He said he had not ruled out addressing the House Ways and Means Committee, which is planning a series of public hearing around the state on property taxes, to push his tax plan.

"I'm not sure if there's a precedent or not," Daniels said. "But this is certainly a matter of such urgency and priority to me that I wouldn't rule it out."