Capitol Steps Newsletter

March 2008 No. 13

Table of Contents

2008 IN General Assembly Wrap-up

Recession? Depression?

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2008 IN General Assembly Wrap-up

Capitol Steps covered the failed immigration bills last week, so here’s a report on the rest of the 16% of the 777 bills filed that eventually passed, though the contents of many bills were merged into others, and most bills got revised along the way.

While the primary property tax restructuring bill consumed media and lawmaker attention, with a compromise package adopted on the last session day, only time will tell whether homeowners will receive the estimated “average 30% reduction” in their property taxes as well as whether the reductions are nullified by increases in sales tax, local option income taxes, and/or other local fees.

HEA1001…

Governor Daniels signed HEA1001 with much ado.

211. HEA1159 requires a study of information and referral (I&R) and a way to fund I&R, including statewide 211. The study will be conducted by the standing legislative Regulatory Flexibility Committee. Not unlike studies completed in Nebraska, Texas, and Michigan, the intent is to review how toll-free hotlines, human service databases, and human service resource directories work in Indiana, including methods to increase the use and ensure adequate funding of 211 and increase collaboration with human service providers. The report is due by December 1, 2008.

IaUW still works for passage of the federal “Calling for 2-1-1” Act. Thus far, Senators Bayh and Lugar and Representatives Souder and Donnelly are among the 41 Senate and 127 House co-sponsors on the bill.

Government Reorganization. While many hoped for enactment of recommendations from 2007’s Local Government Reform Commission (aka the Kernan-Shepard Report), the majority of legislative restructuring proposals related to transfer of funding and tax levies from local government to the State. Two of the Commission’s 27 recommendations made it into law—a reduction in the number of property assessors and moving funding for child welfare from counties to the state.

The 805-page omnibus HEA1001 transfers school, mental health, child welfare, indigent hospital care, pre-1977 police and firefighter pension, and other local levies to the State. One specific provision relates to UW-funded programs. It requires that child welfare programs are reimbursed by the State within 60 days of being invoiced.

A minor provision of HEA1001 calls into question the future of local county offices of the Division of Family Resources, although Senator Kenley assured senators immediately before the vote that reduction in county offices was not the intent of the language.

Health Insurance. There were several bills making changes in Medicaid and Medicare policies. Efforts failed to extend Healthy Insurance Plan eligibility to 300% of poverty.

Family Financial Security. Promoted by the Coalition for Human Services and other advocates for low- and middle-income workers, HEA1001 includes provisions to offset the increase in sales tax by increasing the State Earned Income Tax Credit (EITC) and the renter’s deduction.

These bills also promote financial stability:

Other bills failed that would have helped low-income Hoosier families achieve financial stability and not be dependent upon government assistance, e.g., childcare/dependent care state income tax credit.

Nonprofit Sector issues.

For more info on new laws affecting health and human services, contact Lucinda Nord at IaUW.

Recession? Depression?

With more and more analysts drawing comparisons about Federal Reserve actions last week and the cascade of bad news that prompted the Wall Street’s 1929 “Black Friday,” it is no surprise that half (49%) of Americans are pessimistic about the U.S. economy. One-tenth of us in the Midwest are “very pessimistic,” HarrisInteractive found. Democrats (50%) and the lowest-income households (55%) say they’re worse off today than last year and don’t expect their financial situation to get better in the next 6 months (39%). Republicans (49%) and $75k+ families (46%) say things have improved, and near majorities of them and 18-31 yr olds (50%) are optimistic about their finances in the near future.

Just a month ago, these demographic groups diverged on the question of whether the country was on the right track or not. In general, the younger, more wealthy, and members of the current party in the White House tend to be more positive about the nation’s present and the future course. More often Democrats (91%) also think “big companies” have too much influence in Washington DC (Republicans, 80%), while the reverse is true in gauging the media’s influence (R=80% “too much,” D=69%).

Yet, major charities say their fundraising has not fallen off, the New York Times reported. That’s what the Assn of Fundraising Professionals found in its most recent survey. But “it’s too early to say” is a common theme when projecting 2008’s results.

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