Jul 31, 2006

HEA 1124 Rainy Day Fund

A new Indiana law authorizes a loan from the State Rainy Day Fund of up to $13,000,000 for any taxing unit whose property tax revenue is affected by the bankruptcy of a taxpayer that manufactures microelectronics. If you think this provision seems awfully arbitrary and exclusive, you’re not alone. The bill was authored by Republican lawmaker James Buck of Kokomo. Ironically, Mr. Buck is chairman of the Government and Regulatory Reform Committee. Interestingly enough, the Howard County city has just experienced this particular phenomenon with the October 8, 2005 bankruptcy announcement of local microelectronics giant Delphi Delco Electronics, already the recipient of over $875,000 in two years from the Indiana Department of Workforce Development. Due to the Political clout of Representative Buck, Howard County receives Department of Workforce Development subsidies that are nearly three times the per worker awards of the next highest counties and over six times the statewide average. This special interest pork appropriations law comes directly out of the pockets of all Hoosiers.

Author: James Russell Buck
Sponsor: Jeff Drozda

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