Well, the latest is being described as a "shared Pain"...
Indystar.com
By: Mary Beth Schneider and Brendan O'Shaughnessy
mary.beth.schneider@indystar.com
http://www.indystar.com/article/20090327/LOCAL18/903270383/-1/ARCHIVE
March 27, 2009
Lawmakers: CIB fix will be 'shared pain'
Higher taxes, cash from Colts are options to overcome $20M shortfall
Solving the financial woes afflicting the Capital Improvement Board will be the responsibility of Marion County taxpayers, fans, visitors and Indianapolis' two largest sports teams.
That was the sentiment most clearly heard Thursday at the Statehouse, where lawmakers have been engaged in intense behind-closed-doors negotiations to find a way to bail out the agency that runs sports stadiums in Indianapolis.
Few specifics were available, but legislative leaders said many options were being discussed -- including requiring the Indianapolis Colts to pony up money, raising alcohol or hotel and restaurant taxes, and expanding special tax districts that already capture sales and income taxes for special purposes such as the arenas. Even raising parking meter fees has been floated.
Most likely, they said, is finding a way to tap a revenue stream that takes dollars from those who actually benefit from the facilities -- and doesn't tax people across the state to help out Marion County.
"Obviously, we're stuck trying to find an answer here. We're going to have to pass some legislation," said Senate President Pro Tempore David Long, R-Fort Wayne.
"My goal, and I think a lot of people's goal, is to try to make this pretty much a Marion County solution for the CIB. Whether that's possible or not remains to be seen."
The CIB is facing a $20 million shortfall this year, and that could grow next year if the Indiana Pacers, who are losing money, can't pay the team's $15 million share of the costs of Conseco Fieldhouse.
The lobbying at the Statehouse began weeks ago. On Wednesday, Herb Simon, co-owner of the Pacers, met with Gov. Mitch Daniels, though details of what they discussed were not available.
Sen. Luke Kenley, the Noblesville Republican who is working with Rep. Bill Crawford, D-Indianapolis, on the issue, said lawmakers would meet again next week with "all of the appropriate parties."
"It's probably going to be behind closed doors to get a feel about where we could go," he said.
A contribution from the Colts was at the top of the list for many lawmakers.
House Speaker B. Patrick Bauer, D-South Bend, said legislators wonder "why there is no contribution from the Colts to equal what the Pacers contribute."
The Colts negotiated what many now regard as a sweetheart deal for Lucas Oil Stadium, pocketing an estimated $41 million annually in new revenue above the $150 million a year the club had made at its old stadium, the RCA Dome.
Kenley said he's had a couple of meetings with Colts attorney Dan Emerson about the issue.
"Everybody wants to solve the problem. Nobody is very happy about giving up any revenues or finding revenues on their own part. It's going to be a shared pain," he said.
Colts owner Jim Irsay was unavailable for comment. Greg Schenkel, vice president of sports and entertainment for the Pacers, said the team is "not engaged in any active discussions (with lawmakers). We've been asked questions about our situation. This is not about the Pacers. It's about the CIB."
Lawmakers expressed frustration Thursday that Indianapolis Mayor Greg Ballard has not laid out a proposal for what is essentially a city problem.
Senate Minority Leader Vi Simpson, D-Ellettsville, said Ballard needs to "take a position on a solution before it's put out there for a vote."
Ballard declined an interview, instead issuing a statement that said: "We have been open and forthcoming with the legislature about the severity of our situation, and I appreciate the effort the legislators are making to help find a solution. I look forward to a continued and constructive dialogue with all stakeholders."
A month ago, Ballard said he would prefer a ticket or admissions tax that collects from the stadiums' users rather than a general tax such as food and beverage.
But he has said little publicly over the past few weeks about the ongoing negotiations with the legislature.
Additional Facts
What are the odds?
Food and beverage taxes: Bumping up Marion County's 2 percent food and beverage tax by 1 percentage point would bring in $18 million a year. This is one of the best options because it raises the most money. But opposition from taxpayer groups would be high. Odds: Still alive.
Hotel taxes: An increase of 1 percent in Marion County's 9 percent hotel/motel tax would drum up $4 million a year. The hotel industry is opposed to any increase, saying it would make it more difficult for Indianapolis to compete against other cities for convention business. Odds: On the table.
Raising admission taxes: Increasing Marion County's 6 percent admissions tax by 1 percentage point would bring in $1.5 million a year. Mayor Greg Ballard likes this idea, though the Indiana Pacers are especially loath to do this because it would make it harder for the team, already struggling with thin turnout, to draw crowds. Odds: Possible.
Concessions from the teams: The Indianapolis Colts now get a share of revenues generated during non-Colts events at Lucas Oil Stadium. Giving that up would mean $3.5 million for the Capital Improvement Board a year. The Pacers hope the CIB will assume $15 million a year in operating costs at Conseco Fieldhouse. As a compromise, the CIB might assume a portion of that amount. Odds: Uncertain.
Expanding taxing districts: Adding new hotels and other stadium-related businesses to a sales tax increment financing district in Downtown would generate $10 million a year. Odds: Possible.
Alcohol tax: Indiana's spirits, wine and beer taxes are on the low end, but lawmakers are more interested in solutions that affect Marion County alone, not the whole state. The taxes raise about $42 million a year, which is split between the state and local governments. Odds: Unlikely.
Alcohol taxes
Note: All amounts are per gallon.
In Indiana
» Spirits: $2.68.
» Table wine: 47 cents.
» Beer: 11.5 cents.
In neighboring states
» Illinois: $4.50 for spirits, 73 cents for wine, 18.5 cents for beer.
» Kentucky: $1.94 for spirits, 50 cents for wine, 10 cents for beer. (There's an extra 11 percent wholesale tax on alcohol.)
» Ohio: $8.73 for spirits, 32 cents for wine, 18 cents for beer. (State controls alcohol sales.)
Source: The Tax Foundation, data as of January
