Tough budget decisions for lawmakers

TERRE HAUTE, Ind. (WTHI) - On the eve of Organization Day and the short session, Indiana lawmakers will have some tough decisions to make. The latest revenue numbers show Indiana is more than $300 million behind in expected revenue.

Representatives Bruce Borders (R - Jasonville) and Clyde Kersey (D - Terre Haute) agree raising taxes is not an option.

Governor Mitch Daniels has asked all departments to cut an additional 10 percent of their budget. In just September, there was a $167 million shortfall in expected revenue.

Both Borders and Kersey want Daniels to continue to cut into the rainy day fund, but if the economy does not turn around, it could lead to more painful cuts next year.

Perhaps the next biggest item on the agenda is property tax caps. They expire next summer.

Kersey said making them permanent may be too damaging to local governments.

"I'm opposed to making it permanent and putting it on the constitution until we see what the overall effect of the property tax will be," said Kersey. "It's kind of difficult to get it out of the constitution once you get it in there."

But Borders disagrees and said permanent caps will positively force everyone to be tighter with money.

"No matter what it is, a city, a town or a county spends money on, there's no question they are going to have to look at it and say 'Do we absolutely need this?'" said Borders.

Borders added there are always local income taxes or other measures to raise funds.

Other bills that could be filed starting Tuesday include tightening rules on lobbyists and giving grandparents more rights as guardians.

Organization Day takes place Tuesday in Indianapolis. The 2010 legislative session will begin Jan. 5.