Saturday, January 31, 2009

Legislature to vote on an alternative tax model

It looks like the LOIT (local option income tax) may not be the only tool in the belt for resolving deficit issues in St Joseph County. Rep. David Wolkins (R-La Grange) has authored a bill (HB 1031) that would allow certain local governments in the state to enact a 1% LOGRT (local option gross retail tax). The bill is being sent to committee next week, and would give municipalities designated by the Indiana Office of Tourism as "outstanding Indiana tourist destinations", the ability to levy up to a 1% excise tax on all products currently paying a retail tax.

There have not been any concrete economic feasabilty studies done yet to see what kind of revenue could be generated for governments in St Joe County, but it will definitely be able help to off-set at least some of the large deficits we have. A consumption or excise tax, such as this, would be a much easier tax to sell politically to cizitens of this county. A retail tax taxes only those who have the ability to purchase, while those who are trying to save money are not affected. The greater your ability to spend, the greater contribution you pay -- the more of your money you save or use for bills or groceries, the less contribution you make.

The problem many taxpayers have with the LOIT is that it taxes everyones income the same percentage. In that scenario, families which are struggling paycheck-to-paycheck to get by would be unfairly taxed. If the bill is passed into law, the local goverments would then have to decide if this is tax would even be beneficial enough to enact. Crowe and/or Umbaugh accounting firms would be hired to figure out how much revenue would be create versus the burden on taxpayers. The decision to enact such an ordinance would have to come from the local councils.

Thursday, January 29, 2009

OPINION: The New Economy of Innovation, Communication and Transportation

Global experts are stressing that as the United States and global economies emerge from these trying financial times within the next 4 to 8 years, it will be entering into an entirely new economy altogether. The economy we have now is based primarily on 'profits and growth'. This has accounted for an outrageous portion of our economy to be built around financial markets, housing markets, and land use development. Sub-economies upon sub-economies upon countless of sub-economies have been built around these foundation economies to get us where we are today. These economies have provided our country and other portions of the world with unparalleled standards of living, technological inovations, and supporting revenue that has allowed governments to maintain vital infrastructure improvements.

The premise for these economic machinations have been around for centuries -- each generation adding more diversity to the global economic portfolio. There have been many game-changers throughout history that guided our global economies (for better, or worse) to where we are today: advent of gunpowder, the Mongol hordes, the industrial revolution, European discovery of the New World. Right now, we are at the end of an era, whose beginnings were marked by the Great Depression and World War II. Rather than look at these instances as beginnings, however, it would be more prudent to see these events as transitions in our economic landscapes.

If the period of financial crisis we are in right now does not represent one of those transitions, then it at least represents a significant mile-marker. As a newer world economy starts to take shape almost a decade from now, it will have shed some of its tendancies of the financial sector growth and profit speculation. Things such as Innovation, Communication, and to a smaller extent Transportation will be added to supplement our global economic portfolio.

Don't believe it? Let's put it into a little better perspective. The use of computers and the internet has represented a very significant mile-maker to the human experience. But so far, has mostly expanded to the extent that it has greatly bolstered our financial sector by the exponential growth of newer markets. The world still pretty much looks the same...yeah, we have quicker access to information, but we still keep talking about the "still undiscovered potential of the internet". This is because it is being held back in a sense that it can only grow so far as its ability to generate profits allow it to. There is evidence to this during the dot.com boom of the 90's. While we abviously have more content now, there isn't as diverse of uses as there was then. Before the dot.com boom burst, there were all sorts of cool free things: free computer phone calling, 24-hour neighborhood or urban surveillance systems, and tons of other cool things long forgotten.

Transportation is another example of stunted growth by our economy: we still drive cars with combustion engines. period. Not only that, but the vehicles still all use antiquated mostly analog devices such as foot pedals, turn key ignition, etc. Nothing has really changed much in the past 80 or so years since mass production started. We still use the exact same nasty polluting energy source that we drudge out of the ground to operate them. This is a far cry from the innovative human spirit that had children growing up back in the 1950's doodling pictures of flying cars in their school books.

The focus of the new economy will have a much greater emphasis on innovation, communication, and transportation than what is currently the situation which our economy's main proprierter's like financials, profits and land development growth. It is hard from many people's fiscally conservative views to accept that fact that without market driven profits, there could be much innovation. In all actuallity, there will be MORE innovation this way. Innovation is currently merely a by-product of a market driven economy. Look at where all of the major intellectual developments have come from over the past 60 years -- government funded university studies, NASA, the military, world wide internet infrastructure, subsidation of alternative fuels...the harnessing of nuclear energy and the creation of the atomic bomb were all done in a government laboratory.

First published in 1951, the novel The Foundation by Issac Asimov envisioned a future with limitless energy through the use of nucleics (items and energy sources that use advanced forms of nuclear power). Coal and Oil, however, are treated as commodities in our financial system, thus an integral part of our economy. These industries have put pressure on governments to limit research in this field for fear of a financial meltdown. Nuclear energy is the cleanest and most efficient form of energy on the planet, yet provides only 15% of the world's electricity. Only through government subsidised or direct action can nuclear power be helped to realize its full potential, because the markets have fail us.

10 to 20 years from now the world's economies will be a vastly different landscape. Communities that emerge as succeses, will be the ones that collectively invested in the areas of Innovation (sustainable energy will be a huge driver for this), Communication, and Transportation.

Sunday, January 25, 2009

How can Obama's stimulus package affect the South Bend region's budget woes?

As major deficits plague many local governments in the Greater South Bend region, what aspects of Obama's stimulus plan will help get us back on our feet? Most of the talk has been focused lately on the infrastructure improvements, but will that really help us here in South Bend?

Most of the city and county roads in our region are already paid for by the federal government. This comes about in either fully-funded or matching road grants. This means that any more infrastructure money will only serve the purpose of repairing more roads without actually freeing up any money for the municipality to fund other essential services such as police and fire protection, libraries, county health services, jails, justice system, etc.

There is one provision in Obama's rescue proposal that does not, however, get too much media attention: saving the jobs of the nation's police officers. This will be of great benefit to communities all over the country. As The Journal talked about in another article, most local government's budgets consist of over 80% police and fire protection. Most law enforcement jobs are paid directly out of the coffers of the city's or county's general fund as opposed to state or federal grant money.

This could result in keeping our police officers -- a vital taxpayer funded service -- while at the same time freeing up some much needed revenue for local goverments to pay down their huge deficits. As it stands now, governments in the Greater South Bend region are looking at cutting 400 to 500 government jobs and the possibilty of a 1% income tax increase.

Saturday, January 24, 2009

Ivy Tech to expand its South Bend Campus

Ivy Tech Community College - South Bend is currently in the process of buying property along the south side of Sample St between Michigan St and Fellows St near downtown South Bend. School officials are reporting that an over abundance of students is leaving them no choice but to turn away students from enrolling in many classes.

The community college's current building is located on South Michigan St behind the fire station on the east side of the street. Some opponents of the expansion claim that school would be taking up potentially valuable retail space along a main corridor of the city. Since the school is a non-profit, there would be no chance for the city to collect tax revenues either.

School officials insist that the area of proposed development will bring positive development to the area and will be welcomed by the all ready existing businesses such as Mossberg & Co and Ziker Cleaners. Along with the expansion will come more jobs which pay income taxes and the ability to educate more people in the community.

IVY Tech administrators believe that they can be of future service to coming nanotechnology industries that need to provide continuing education for their employees. The school already provides customized education like this for many area businesses, law enforcement agencies, trade organizations, and hospitals. Memorial hospital is a regular contractor with the college to provide continuing education to their nursing staff for things such as new developments in surgical technology.

Saturday, January 17, 2009

Kostielney is the new 1st District County Commissioner

Former District B councilman Andy Kostielney has been voted in by the GOP to take Mark Dobson's old seat as county commissioner. He will be finishing out the next two years of Dobson's term, and if he wishes to seek reelection will have to run again in 2010.

Who is this guy? Will he be good for St Joseph County? The Journal is initially confused as to why anyone in their right mind would like to enter into the unappreciated and underpaid world of public service, but this guy may actually have a decent head on his shoulders.

As a former Republican county councilman, Andy voted in favor of the controversial Tondu Coal Gasification plant. One may think "of course, the republican wants to do whatever corporations tell him to do." This is not the case. Kostielney happens to be a big fan of the Democratic led and government exectuted Project Future. It was Project Futures recommendation and plan to allow Tondue to build an environmentally friendly plant in New Carlisle. The county council shot down the idea with a vote of 7-2. Tondu would have brought in at ;east $400 million immedeatly into the region.

Project Future -- a whole entire blog of its own -- was a well planned mission for the region that many in local government have been dismissive about. As a councilman, Andy fought to keep Project Future funded and keep its mission. Thats right, a Republican that believes in the responsibility of government to its taxpayers by working to attract economic development....Regan would be spinning in his grave.

Kostielney will be a welcome addition to the commissioners' office.

Friday, January 16, 2009

Bill introduced to allow Major Moves funds to be used in more progressive manners

State Rep. Scott Pelath (D-Michigan City) has introduced some very forward thinking legislation to allow for Major Moves funds to be used for Public Mass Transportation. The current legistation on the books allows the money to be used only for roads, highways, and bridges.

House Bill 1273 addresses many concerns about the Toll Road legislation that was rushed through by Gov Mitch Daniels. At the time of the Republican led legislation, there was much concern from Democratic leaders that reserving funds only for roads was very short-sighted. Many Democrats believed that to much money was being spent year after year by both the state and local governments on roads. Not only are new roads expensive to build, but old roads are expensive to maintain.

Many ideas were thrown around such as the expansion of the South Shore, interurban transportation, or even high speed rail between South Bend and Indianapolis. Mitch Daniels, however, shot down every one of them. The arguments for use of the Major Moves funds for Public Mass Transportation are getting stronger. With prices of road construction materials rising -- in some cases quadrupling -- governments are not able to purchase anywhere near the same amount for a road anymore.

Still, there may be some Republican opposition to HB 1273. Stay tuned to The Journal for further updates from the 2009 legislative session.

GOP Election Day tomorrow/Chairman's race in two months

Tomorrow is the election day for Mark Dobson's vacant 1st District County Commissioner's seat. 40 Republican precinct committee people will vote on one of two candidates: Karen Vargo and Andrew Kostielney. The Journal predicted earlier that there could be a third candidate in current county council member Dale Devon. The GOP chairman said that there is still time for another candidate to join in the race, but he doesn't think that it is very likely.

The election will be held tomorrow at 1 pm at St joe County Republican Headquarters.

St Joseph County GOP chairman Chris Reily is also going to be seeking another term shortly, but that election is not until March 17th. Mr. Reily had initially indicated two years ago that he would only seek one term in this office. He claims that he has seen a new future for his party and he wants help it grow in this county. In a release last month Reily stated that,

'When I first took the helm, people cautioned me "you'll be the captain of an empty ship"--a statement that proved patently false. Over the last two years, dozens of people dedicated their lives to this Party, and--and a result--we made enormous progress.'

Some of the accomplishments he cites are:
* over 125 new members
* the hirng of an Executive Director
* newsletter email list of over 1000
* establishment of new College Republican groups at area universities
* restarting Young Republicans and South Bend City Committees
* creation of a Candidate's College to train future elected officials

Sunday, January 11, 2009

Ignition Park....more?

The city of South Bend announced the upcoming ground breaking of the new Ignition Park in the 83 acre lot just South of Sample Street and West of Chapin St. This is potentially some great news for the "Westside." I mean, multinational bio and electronic companies relocating to the old Studebaker site could mean a revamping of property values, job opportumities, tax bases, etc.

So, is this just "smoke in mirrors" or could this really help to spelll economic recovery for our fair city?

Experts from across the nation are saying yes.

In the Journal's conversation with international development planner Abe Farkas, we find out why this may transform South Bend's economic landscape forever. According to Mr. Farkas, the best way to grow jobs in a region is to first partner up with a particular industry by offering unbeatable incentives. In our case, the Federal government has provided more incentive than could be imagined. Technology parks such as this are being bankrolled by the feds in only four areas of the country. The four technology parks in the U.S. are as follows: Westcoast= Los Angeles, South= Austin, TX, Northwest= Albany,NY, Midwest= South Bend, IN.

WOW! Talk about exclusive!

The nanotechnology sector in the U.S. is currently (even in the midst of this recession) a 1 trillion dollar a year industry. This type of money is sure to have an effect similar to the one that (if not greater) the Eli Lilly Corp had in Indianapolis. "Federal programs such as these turn out to be gold mines not just for [the cities they are in], but for the entire region as well," said Farkas " I am confident that this will be the cause for some major long term revitilization efforts for the City of South Bend."

Could this be the "Studebaker" that leads us into the next century? The Journal hopes so, and we will keep our readers up-to-date on any new developments concerning this issue.

-stay classy South Bend

Tuesday, January 6, 2009

Indiana Legislative session to start Wednesday...HEA 1001 is the hot topic

The Indiana General Assembly convenes for the 2009 legislative session on Wednesday and much could be in store for the future of St Joseph County. This year is strictly a "budget year" and is scheduled to last approximately four months. There are many speculations on what (if any) amendments will be made to the provisions of HEA 1001.

The 1081 page House Enrolled Act 1001 (HEA 1001) was passed last legislative session as a potential streamliner for local governments. The bill included changes in tax structures, the ousting of township assessors, and allowed for referendum votes on large ticket spending items by local governments among other things. Benevolent in its premise, the passing of this bill resulted in millions of dollars of debt to many of the old industial communities in the northern part of the state.

St Joseph County, South Bend, and Mishawaka have all been hit very hard by HEA 1001 and have already layed-off many workers and cut some services. Despite this, the three municipalities are looking at the laying off of hundreds more workers, but also a Local Option Income Tax (LOIT) increase just to break even. While law enforcement and fire safety usually comprise about 80% or more of a city or counties budget, it is likely that these departments will see the most cuts. This will surely mean less fire fighters, drastically less police, less paying for criminals to be detained in jails, and a slew of other essential services that our community needs.

Groups such as the Indiana Association of Cities and Towns (IACT), Indiana Association of Counties (IAC), as well as many local leaders themselves have been lobbying the Governor and the legislature to make some much needed updates or amendments to HEA 1001 to ensure the future fiscal solvency of the municipalities in our county. Some believe that since Speaker of the House Pat Bauer (D) is from St Joseph County himself that he will be spearheading some of these changes immedeately. Others believe that the House Democrats are stuck in a political headlock between a Republican controlled Senate and Governor, and do not have the clout to deal with these problems.

Below I listed both the House and Senate committees with the members from our area that sit on them. It will be very important for the electorate to pay close attention this session to the legislature this year. With the many constitutionally protective layers of government, it is sometimes difficult for the average citizen to at which elected official "the buck stops".

Stay tuned to the Journal for legislative updates throughout the session.

...stay classy South Bend.

House Committees:
Commerce, Energy, Technology and Utilities:
Rep. Ryan Dvorak
Courts and Criminal Code:
Rep. Ryan Dvorak
Elections and Apportionment:
Rep. David Niezgodski, Vice Chair
Environmental Affairs:
Rep. Ryan Dvorak, Chair
Family, Children, and Human Affairs:
Rep. Jackie Walorski
Financial Institutions:
Rep. Craig Fry
Insurance:
Rep. Craig Fry, Chair
Judiciary:
Rep. Ryan Dvorak
Labor and Employment:
Rep. David Niezgodski, Chair
Public Health:
Rep. Craig Fry
Public Policy:
Rep. Jackie Walorski
Roads and Transportation:
Rep. David Niezgodski
Committee on Joint Rules:
Speaker B. Patrick Bauer (ex officio)


Senate Committees:
APPROPRIATIONS:
Senator John Broden, R.M.M.
Senator Ryan Mishler
COMMERCE, PUBLIC POLICY & INTERSTATE COOPERATION:
Senator Jim Arnold
Senator Joe Zakas
ELECTIONS:
Senator John Broden
ETHICS:
Senator Jim Arnold
HEALTH & PROVIDER SERVICES:
Senator Ryan Mishler, R.M.
Provider Services Subcommittee
Senator Ryan Mishler
HOMELAND SECURITY, TRANSPORTATION & VETERANS AFFAIRS:
Senator Jim Arnold, R.M.M.
Public Safety Subcommittee
Senator Jim Arnold
INSURANCE & FINANCIAL INSTITUTIONS:
Senator Joe Zakas
Insurance Subcommittee:
Senator Joe Zakas
JUDICIARY:
Senator Joe Zakas, R.M.
Senator John Broden
Probate Code & Trusts Subcommittee:
Senator Joe Zakas, Chair
Senator John Broden
NATURAL RESOURCES:
Senator Ryan Mishler, Chair
Senator Jim Arnold
PENSIONS & LABOR:
Senator Jim Arnold
TAX & FISCAL POLICY:
Senator Joe Zakas
Senator John Broden

Saturday, January 3, 2009

Rum Runner's Turned J and F's Pot of Gold?

The temporarily named J&F's Pot of Gold, formerly known as Rum Runners, located in downtown South Bend has officially dropped their franchisee and decided to embark upon a venture of their own. The decorative theme and nightly specials are expected to remain solid throughout the process. The 21 and up bar and restaurant is known for its tropical atmosphere and dueling pianos and is dear to the hearts of South Bend college students particularly on Wednesday nights when they provide well mixed drinks for just $.75 a pop.

Sources say that the downtown hotspot hasn't lost its steam and that the owners are just eager to run things the way they want to without being attached to the strings of their franchiser. They maintain that the restaurant's fairly recent move from the 100 Center in Mishawaka to the growing downtown district of South Bend was a good decision. The business has since gained more popularity and revenue.

It's hard to guess how long it will take for J&F's Pot of Gold to take it's name to fame, however, the owners aren't expecting it to stick and plan to change it one last final time in the spring. To Tequila Tamers? Or Randy Brandys, perhaps? We'll just have to wait a few months and see.

How will Michigan's new medical marijuana laws effect Indiana border residents?

While Michigan policy makers are trying to determine oversight regulations for the use of medical marijuana in their state, Indiana law enforcement at the state and local levels are still unsure as to how to proceed with a potential spill over from the northern border.

If Michigan's medical marijuana laws end up being stuctured anything like the state of California's laws, there may be an entirely new economy built around these regulations. Even the marijuana decriminalization advocates at the Drug Reform Coordination Network were not shy in describing the ease of an ordinary citizen being able to get prescribed the drug for medical purposes. In one statement by the group, they allege that California's laws allow for:

"...virtually anyone with $150 for a doctor's visit to seek certification as a a registered medical marijuana patient, and with its thriving system of co-ops, collectives, and dispensaries, the Golden State has created a situation of very low risk for consumers and significant protections even for growers and sellers."

Q & A
Q: If an Indiana citizen travels two minutes across the border to a doctor in Michigan and receives a prescription for marijuana, are Indiana police required honor that presciption?

A: According to the Journal's local legal experts, the answer is yes. The federal constitution outlines a mandate requiring states to give "...full faith and credit to the laws of another state".

Interesting Predicament
Here's the situation:
Two men are sitting in a parked car in downtown South Bend smoking marijuana, one of the men has a Michigan medical marijuana prescription and the other does not. The men are approached by a police officer for suspicion of using a controlled substance. Under our current laws, the officer may only arrest the man who does not not have a prescription for the substance.

But...
If the same two men are approached in their car by a police officer in Michigan, then both may be arrested!

Reason:
Since the public referendum on medical marijuana went into effect on December 5, 2008 in Michigan, lawmakers in that state have been creating regulations prohibiting the use of the subtance in many places -- including in motor vehicles.

What does Indiana do to address this problem? There is obviously some serious legal loopholes that need to be plugged. The Journal does not have an official opinion on this issue....the Journal just reports the news.

...stay classy South Bend.

Friday, January 2, 2009

Dobson's vacant commissioner seat may prove to be a dogfight with a last minute surprise

As current county commissioner Mark Dobson plans to step down January 5 for a job at the Chamber of Commerce, GOP contenders are lining up to take his place. In a special party election by Republican precinct committeemen scheduled for January 17, the two frontrunners are former county council member, Andy Kostielney and IUSB Director of Fiscal Affairs, Karen Vargo.

South Bend Journal sources say that Kostielney is the favored candidate by Republican County Chairman Chris Riley, but that there may also be another legitimate candidate throwing his hat in the ring: current County Council member Dale Devon. The deadline for applications for this position is January 7, so he still has time to file.

A couple of "pros" for Devon:
>Devon -- a home developer -- would likely receive strong support from the St Joseph Valley Home Builders Association (a traditionally Republican money base).
>Electorally, Devon's council district boudaries comprise the majority of the commissioner's district he will have to run in 2 years from now
>Devon has far greater name recognition than the other candidates due to his county council race in 2006 and his unsuccessful bid for State Representative in 2008.

...stay classy South Bend