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MIKE PENCE BECOMES INDIANA’S 50th GOVERNOR  On Monday, Mike Pence was sworn in as Indiana’s 50th governor in an outdoor ceremony on the west side of the Indiana Statehouse.  Pence’s inauguration remarks were upbeat, declaring “While many of our sister states – some on the coasts, and some nearby – are struggling, our state is poised for an era of growth like no other in our lifetime . . . This is our time to shine . . . We dare not squander this moment with complacency or self-congratulation.”  At the same time, he recognized that the state and many of its citizens face significant challenges.  He stated, “With so many families and businesses struggling just to get by, we have no choice but to remain bold, optimistic and relentless in our work until good jobs, great schools, safe streets and strong families become the hallmark of every community in this state!  This we must do.”  The new governor also acknowledged the contributions of many of his recent predecessors: Mitch Daniels, Joe Kernan, Frank O'Bannon, Evan Bayh, Bob Orr, Doc Bowen and Edgar Whitcomb.

PENCE ISSUES EXECUTIVE ORDERS  Within hours of his inauguration, Gov. Mike Pence signed 15 executive orders.  Among them were executive orders ordering a moratorium on regulations, requiring several state agencies to consider the impact any new regulations might have on families, and transferring the board that oversees teacher contract negotiations from the Office of the Superintendent of Public Instruction to the governor’s office.

SHEETS PICKED TO HEAD ISDA  On Thursday, Gov. Mike Pence and Lt. Gov. Sue Ellspermann announced the appointment of Gina Sheets to be director of the Indiana State Department of Agriculture (ISDA).  Prior to her appointment, Sheets was director of economic development and international trade at the ISDA.  Before joining state government in 2009, Sheets served as economic development director and CEO of the Clinton County Chamber of Commerce, director of the Frankfort Urban Enterprise Association and director of the Clinton County Economic Advancement Foundation.  Sheets and her husband, Travis, own a farm in Clinton County where they raise pasture poultry, free-range hens, pasture beef, rainbow trout and a variety of produce.  She is a graduate of Stanislaus State University (CA) and the University of Oklahoma Economic Development Institute.

GENERAL ASSEMBLY TO OBSERVE MLK DAY ON MONDAY  The Indiana General Assembly will join the rest of state government in observing the birthday of Dr. Martin Luther King Jr. on Monday.  Legislative activities will resume on Tuesday.

PENCE UNVEILS BUDGET PRIORITIES  On Tuesday, OMB Director Chris Atkins presented the governor’s budget to the State Budget Committee.  The governor’s budget doubles growth in K-12 spending, provides permanent funding for full-day kindergarten, and increases teacher excellence grants by $6 million to provide pay increases for high-performing teachers and it provides for a 1 percent increase in funding for public colleges and universities and $18 million over two years for adult workforce improvement funds.  The budget also would invest $6 million over two years to launch Pence's effort to bring career, technical and vocation training to every high school in Indiana by creating Indiana Works Councils.  The councils will develop regional, demand-driven curricula to prepare students to start their careers when they graduate from high school.  Gov. Pence's budget proposal also targets over $300 million in excess reserves over the next two years and would reinvest that money in Indiana's roads and infrastructure.  The budget also includes $35 million for the Department of Child Services to hire more caseworkers and expand the emergency hotline.  It also fully funds the Medicaid forecast.  The Medicaid forecast is the projected increase in enrollment in Medicaid in the next two years.  The budget is also the vehicle the governor is using to implement his campaign promise of a 10 percent decrease in personal income tax over the next two years.
 
SENATE COMMITTEE HEARS AND HOLDS ELECTION OF REGIONAL SEWER DISTRICT TRUSTEES  On Tuesday, the House Elections Committee heard testimony on SB 205, a bill that would provide for the direct election of regional sewer district trustees.  In presenting the bill, its author, Sen. Jean Leising (R-Oldenburg) acknowledged that, as introduced, it had some problems that needed to be addressed.  Farm Bureau's Bob Kraft testified that Farm Bureau policy called for RSDs to be more responsive to the ratepayers in the district and pledged to work with Sen. Leising and other interested parties to develop a workable procedure that satisfied Farm Bureau policy.  Other witnesses explained how difficult it is currently to find people to volunteer for trustee positions and suggested that it would be even more difficult to find people who were willing to subject themselves and their families to an election.  Committee member Sen. Ron Alting (R-Lafayette) stated the problems with RSDs would not be solved by electing the trustees.  He cited his own experience with the Twin Lakes Water and Sewer District in White County and indicated that he felt the cost, which he acknowledged to be high, was worth it because of the marked improvement in water quality in Lakes Schaffer and Freeman.  At the end of the testimony, Committee Chair Sue Landske (R - Cedar Lake) held the bill to give Sen. Leising an opportunity to resolve some of the bill’s difficulties.

HOUSE APPROVES AG TRANSPORTATION BILL  The first bill to work its way through the process in the House was HB 1068 (Rep. Bob Cherry, R-Greenfield).  On Tuesday, the House passed by a vote of 98-0 this bill which allow drivers of farm trucks in Indiana to take advantage of some beneficial changes which were included in the federal transportation act passed by Congress last summer.

PERSONAL PROPERTY AND PROPERTY TAX APPEALS KICK OFF FISCAL ISSUES  The Senate Tax & Fiscal Policy Committee chaired by Sen. Brandt Hershman (R-Buck Creek) started the session by examining the property tax appeal process and with the issue of reducing the burden of personal property tax which is important to farmers whose operations are so capital intensive.  SB 152, authored by Sen. Doug Eckerty (R-Yorktown), states that once an assessment has been appealed and settled through the Property Tax Assessment Board of Appeals (PTABOA), the new assessment is the base value to be “trended” for the following year’s assessment.  Katrina Hall of Indiana Farm Bureau testified in favor of the bill, stating that she hears from members frequently who are frustrated by back-and-forth struggles with assessors on appeals.  Those representing assessors expressed concerns about how the bill would interfere with providing true market value assessments.  The bill was held so the author could work out issues with assessors.

SB 353, county option exemption for personal property, authored by Sen. Hershman would permit a county council to approve personal property tax exemptions in the county for all taxpayers and set a maximum dollar amount.  Testimony for this bill was taken along with testimony on SB 375, depreciable personal property assessment authored by Sens. Dennis Kruse (R-Auburn) and Jim Buck (R-Kokomo).  SB 375 would change the 30 percent floor used in personal property assessment to 20 percent.  Katrina Hall testified in favor of both bills, stating that Farm Bureau policy supports the elimination of personal property tax as long as the revenue is replaced for local units of government.  Replacement revenue is the most complicated part of this issue since personal property tax generates about $1 billion in local revenues.  The problem for the agricultural community is that its part of that revenue is large to Indiana’s farmers but a small part of the personal property pie.  If personal property were eliminated, most farmers would pay more in additional real estate taxes than they would receive in relief.  These bills were both held for future action.

SENATE LOCAL GOVERNMENT COMMITTEE HEARS ASSESSOR QUALIFICATION AND GOVERNMENT MERGER BILLS  SB 19, dealing with local government reorganization and authored by Sen. Jim Tomes (R-Wadesville), was heard on Wednesday.  Katrina Hall testified in favor of the bill that attempts to provide for a separate vote tally for those inside and outside the city limits when a city and county are attempting a merger.  Sen. Tomes offered the bill to address the unequal playing field that rural residents were subjected to in the recent merger referendum dealing with Vanderburgh County and the City of Evansville.  Hall offered three additional provisions to improve the bill, including the requirement of a public fiscal plan that would give voters an idea of the ramifications of proposed mergers and a prohibition of referendum campaign contributions to the city or county from vendors doing business with either.  The Indiana Chamber testified against the bill saying it was not needed due to the extreme success those opposing the Vanderburgh/Evansville merger had on November 6.  The bill was held until next week when a major amendment is expected to be offered.

The Senate Local Government Committee also heard SB 12 (Sen. Phil Boots, R-Crawfordsville), which deals with whether a county assessor must obtain a Level III certification before running for or continuing to hold office.  The bill would instead allow an employee or contractor to hold the Level III designation.  County assessors who were in Indianapolis for a training conference testified against the bill saying that the Level III certification has provided credibility to their office and much needed expertise.  The assessors present felt SB 12 was a step backward.  The bill was held for further negotiations.

HOUSE WAYS & MEANS HEARS ONLINE SALES TAX BILL  On Wednesday, the House Ways & Means Committee considered HB 1007, authored by Reps. Tom Dermody (R-LaPorte) and Ed Delany (D-Indianapolis), which would require online vendors with a physical presence in Indiana to collect sales tax and remit it to the state of Indiana.  Studies estimate that this bill would raise anywhere from $75 million to $150 million per year for state coffers.  The bill only requires collection of sales tax already owed by those buying from Amazon, for example.  Taxpayers who are not charged sales tax in an online transaction are supposed to report that sales tax owed as “use tax” and remit it with their annual Indiana income tax return.  Most taxpayers are skipping the reporting so the revenue is lost and, more importantly, local retailers are put in the position of being a showroom for online retailers.  This situation is very anti-competitive for brick-and-mortar retailers – particularly small retailers who are often in rural towns.  Katrina Hall testified in favor of the bill stressing that IFB members see many constructive ways the state could spend these tax dollars that are in fact already owed.  HB 1007 was held for further consideration.

SHOULD IT BE EASIER TO CREATE A TOWN?  This question was examined on Thursday morning in the House Local Government Committee chaired by Rep. Tim Neese (R-Elkhart) when HB 1186 was presented by author Rep. John Price (R-Greenwood).  HB 1186 would lower the threshold for the number of landowners required to initiate the proceedings of incorporating a town.  If this happens, a referendum of voters, not landowners, would decide whether or not the designated area becomes a town.  This bill does not involve annexation per se but deals with areas being designated parts of a new town rather than joining an existing one.  Katrina Hall testified against the bill, in particular because it removed the provision in current law allowing 51 percent of the landowners to stop such a proposal.  Others testifying on the bill pointed out concerns.  HB 1186 was held so Rep. Price could propose an appropriate amendment next week.

AMERICAN FARM BUREAU RECOGNIZES INDIANA FB ACTIVITIES  The American Farm Bureau Federation held its annual convention in Nashville, Tenn., this week.  Indiana Farm Bureau was recognized with AFBF Awards of Excellence in all five of the categories considered.  The awards were presented in the categories of policy development and implementation, public relations and communications, education and outreach, member services, and leadership development.  While all of these categories reflect the high level of involvement by Farm Bureau members, the IFB Public Policy Team is especially gratified that Farm Bureau members continue to support our efforts to develop and implement policy that reflects the opinion of a truly representative cross section of our membership.  We thank all of the Farm Bureau members whose involvement helped us achieve this recognition.

AFBF DELEGATES SET POLICY FOR UPCOMING YEAR  Delegates to the AFBF convention set the policy that will guide the organization’s lobbying and other policy implementation activities throughout the upcoming year.  Recognizing the fluid nature of federal farm policy negotiations, delegates gave the AFBF board of directors discretion to take positions on the farm bill.  The delegates also supported the collection of state sales tax on internet sales.  Indiana Farm Bureau President Don Villwock reminded the delegates that the sales tax issue required action to repeal the federal law that states cannot compel the collection of their sales tax by online merchants that do not maintain a physical presence in their state.

OBAMA TO BE INAUGURATED FOR SECOND TERM ON SUNDAY  President Barak Obama will be inaugurated for his second term on Sunday.  Because the constitutionally mandated inaugural date of January 20 falls on a Sunday this year, Sunday’s inauguration will be a private White House ceremony.  The balls and other ceremonies observing the inaugural will occur on both Sunday and Monday.  The Indiana Society of Washington, D.C., will have its inaugural ball on Sunday at the Omni Shoreham Hotel.   The non-partisan social and philanthropic group will celebrate the re-election of President Obama and honor the election of Gov. Mike Pence and the Hoosier congressional delegation. This formal dinner-dance has been conducted every four years on the eve of the presidential inauguration since 1953.  District of Columbia tourism officials reportedly expect about 800,000 people for Obama's January 21 public swearing-in, compared with 1.8 million in 2009.

VILSACK TO CONTINUE AS SECRETARY OF AGRICULTURE  Former Iowa Gov. Tom Vilsack will stay on as Agriculture Secretary in President Obama's second term.  According to Politico, the president asked Vilsack, who has headed USDA since 2009, to remain on the job, and Vilsack agreed to remain.
             

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