INDIANAPOLIS (AP) — Indiana lawmakers are hailing the legislative session they completed early Saturday as a bipartisan success despite disagreements that at times threatened to derail talks about key pocketbook issues including jobs, taxes and funding for cash-strapped schools.
But Indiana University economist Morton Marcus said much of what lawmakers accomplished amounts to "foolishness." The tax breaks passed and a one-year delay in an increase in taxes businesses pay into the state's unemployment insurance fund likely won't spur hiring, he said.
"Firms hire people because they have sales that justify hiring more people. If you don't have enough people coming into your store, you don't hire that extra person. If there aren't enough people dining at your tables, you don't hire that extra bus boy," he said.
House Democrats agreed to delay the unemployment tax increase despite the fund's financial problems. The fund has borrowed $1.6 billion in federal money to remain solvent. Republicans wanted to delay the increase because they said it would cause businesses to lay off workers in an economy that is still floundering.
Marcus said delaying the increase doesn't mean there will be more jobs, nor were businesses certain to cut jobs if the tax increase had taken effect as scheduled, he said.
"It's very unlikely you will see jobs cut because of an unemployment tax. It's just foolishness that is going on here. This is playing to the grandstand, and the grandstand is full of people who don't understand how the game is played. There is nothing meaningful here," Marcus said.
Lawmakers "know economic theory" but don't understand the way businesses work, he added.
Still, top lawmakers and Gov. Mitch Daniels insisted taxpayers won during the session that began in early January and was scheduled to adjourn by Sunday.
They touted a bill that tightens Indiana ethics and lobbying rules for lawmakers and the executive branch and compromises on the unemployment taxes, job-creation incentives and a bill that will allow schools to tap some accounts funded by property taxes to help offset $300 million in state-ordered cuts.
They also agreed to let voters decide in November whether the state constitution should limit property tax bills to 1 percent of homes' assessed value, 2 percent on rental property and 3 percent on business property. Daniels had pushed to include the caps in the constitution, saying it would make them harder for future Legislatures to undo.
Lawmakers also passed legislation giving workers the right to keep weapons locked in their car trunks or out of sight in locked vehicles parked on their employers' property. Schools, child-care centers, domestic violence shelters and some other sites would be excluded.
Other passed legislation said parents behind on child support payments who hit big slot machine jackpots would have to give up the cash to their children. The withholdings would generally kick in on slot machine winnings of $1,200 or more.
Efforts to impose a statewide smoking ban in all public places, except gambling venues, and to add accountability and transparency to the state's highly criticized privatization of welfare intake died, as did a bill to prevent most schools from starting classes before Labor Day.
Even so, "The taxpayers got their money's worth this session," said House Minority Leader Brian Bosma, R-Indianapolis.
House Speaker Patrick Bauer, D-South Bend, said he was pleased that lawmakers tended to job-creation issues that he hopes will help the more than 300,000 Hoosiers who are out of work.
"When the history of this session is written, it will be remembered that we have given these Hoosiers hope," Bauer said.
Daniels said lawmakers did well in a difficult economic climate.
"In all honesty, this was an essentially defensive, Hippocratic session," Daniels said in a statement issued Saturday. "I prefer playing offense on behalf of change for Indiana's future, but in this economy and political environment, this was not a bad outcome."
More Information:
Indiana General Assembly
Closed Friday
57 bills passed
Microbreweries: Senate Bill 0075 - Microbreweries may sell beer for carry out on Sundays and Election Day
Child Support: Senate Bill 0163 - Casino owners can deny winnings to adults who haven't paid child support
Custody: Senate Bill 0178 - Mothers will be given primary physical custody in custody battles
Research resources: Senate Bill 0084 - State educational institutions must make research tools available to legislators and staff of the legislative services agency
Unlimited teaching contract: House Bill 1005 - Removes age limit for teachers who hold an indefinite contract
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