July 23, 2014 at 2:10 p.m.
Davis gives update on legislature
Davis gives update on legislature
By Amanda Junk-
A state official updated members of the Jay County Chamber of Commerce Tuesday on the recent session of the Indiana Legislature.
Indiana State Rep. Bill Davis (R-Portland, Dist. 33) addressed local business leaders on the allocation of state funds and the fact that the biennial budget bill failed to pass during the regular session during a networking luncheon sponsored by the chamber at Jay County Hospital.
Davis said state government is still spending $750 million more than it is expected to take in, and is looking at a possible tax increase. Davis said his main concern is how effective the session was for rural areas.
"Many feel that the rural community will be left out because the budget is focusing more on projects in metropolitan areas," he said.
Davis said that complications over possible expansion of gambling issues at the state's two horse racing tracks were part of the reason legislators failed to pass a budget.
Davis also discussed the Unemployment Insurance Trust Fund bill, which was signed into law last month. The bill is expected to raise employer taxes $700 million to fix Indiana's bankrupt unemployment insurance fund.
Indiana has borrowed nearly $800 million from the federal government since late last year to continue paying unemployment claims.
The new guidelines nearly double the top tax bracket for those who lay off the most workers to 10.2 percent - accounting for the largest tax increase for employers in history, Davis said.
Davis said he was disappointed it wasn't discussed on the House floor and was passed directly to Senate because the new law affects 47,000 new Indiana businesses.
"The gap is still there; it does nothing for reform," he said.
Some Chamber members have similar concerns about the unemployment insurance plan, which is structured to raise taxes on businesses that lay off workers but which will lower taxes for those that retain workers.
"It will have a huge impact for the area as deficits pick up, so it's definitely something that's important to me," said Vicki Tague, executive director of the Jay County Chamber of Commerce.
Davis also said putting incoming stimulus money toward an infrastructure project like repairing storm sewers in Portland would create more jobs in the area, but said such funds are very targeted in how they can be used.
"There's nothing more shovel-ready than Portland paving a street but from a budget standpoint that's not efficient and probably not easy to get state funding," Davis said.
Legislators are waiting for Indiana Gov. Mitch Daniels to call the special session. Davis said that the budget is his No. 1 priority, and believes that with good leadership, one can be passed relatively quickly.
According to the Indiana State Constitution, the budget must be adopted by July 1, the beginning of the state's fiscal year.[[In-content Ad]]
Indiana State Rep. Bill Davis (R-Portland, Dist. 33) addressed local business leaders on the allocation of state funds and the fact that the biennial budget bill failed to pass during the regular session during a networking luncheon sponsored by the chamber at Jay County Hospital.
Davis said state government is still spending $750 million more than it is expected to take in, and is looking at a possible tax increase. Davis said his main concern is how effective the session was for rural areas.
"Many feel that the rural community will be left out because the budget is focusing more on projects in metropolitan areas," he said.
Davis said that complications over possible expansion of gambling issues at the state's two horse racing tracks were part of the reason legislators failed to pass a budget.
Davis also discussed the Unemployment Insurance Trust Fund bill, which was signed into law last month. The bill is expected to raise employer taxes $700 million to fix Indiana's bankrupt unemployment insurance fund.
Indiana has borrowed nearly $800 million from the federal government since late last year to continue paying unemployment claims.
The new guidelines nearly double the top tax bracket for those who lay off the most workers to 10.2 percent - accounting for the largest tax increase for employers in history, Davis said.
Davis said he was disappointed it wasn't discussed on the House floor and was passed directly to Senate because the new law affects 47,000 new Indiana businesses.
"The gap is still there; it does nothing for reform," he said.
Some Chamber members have similar concerns about the unemployment insurance plan, which is structured to raise taxes on businesses that lay off workers but which will lower taxes for those that retain workers.
"It will have a huge impact for the area as deficits pick up, so it's definitely something that's important to me," said Vicki Tague, executive director of the Jay County Chamber of Commerce.
Davis also said putting incoming stimulus money toward an infrastructure project like repairing storm sewers in Portland would create more jobs in the area, but said such funds are very targeted in how they can be used.
"There's nothing more shovel-ready than Portland paving a street but from a budget standpoint that's not efficient and probably not easy to get state funding," Davis said.
Legislators are waiting for Indiana Gov. Mitch Daniels to call the special session. Davis said that the budget is his No. 1 priority, and believes that with good leadership, one can be passed relatively quickly.
According to the Indiana State Constitution, the budget must be adopted by July 1, the beginning of the state's fiscal year.[[In-content Ad]]
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