INDIANAPOLIS - A broad coalition of special interest groups representing teachers, universities, farmers, mayors and businesses united behind a common call to lawmakers Friday: Fix the state's financial problems and tax system this legislative session.

They share something with lawmakers, however: They don't agree on the specifics of how to do it.

"We are not endorsing any specific plan," Steve Ferguson, executive vice president of the Bloomington-based medical device company Cook Group Inc., said during a Statehouse news conference.

"We are addressing a need for vision, a call to action to lay aside the politics and create a 21st century tax program that also provides the appropriate revenue necessary for the investments in our future."

Said Chris LaMothe, president of the Indiana Chamber of Commerce: "I think what we're trying to do is encourage a movement away from a political discussion of the issues to a more public policy discussion of the issues."

The coalition, called the Alliance for Indiana's Future, also includes the Indiana Association of Realtors, Indiana Farm Bureau, Indiana State Teachers Association, Indiana Metropolitan Mayors' Alliance and Indiana and Purdue universities.

They said problems with the state's budget deficit, an outdated tax structure and higher property taxes on homeowners expected from the unfolding statewide reassessment were too pressing to put off for another year.

Karl Berron, vice president of the Indiana Association of Realtors, said court-ordered changes in property tax assessment threatened the state's housing market. He said Indiana has a home ownership rate of 75 percent, making affordable housing one of the state's few competitive advantages over other states.

"We don't think that large increases in residential property taxes are acceptable at this point," Berron said.

Nobody at the news conference specifically called for tax increases, but several said the budget deficit - projected to top $1 billion by July 2003 if nothing is done - threatens adequate levels of funding for schools and universities.

Purdue President Martin Jischke said Purdue stands to lose $60 million for operations, technology and capital projects because of the funding crisis and budget cuts.

He also said that Gov. Frank O'Bannon had frozen spending from a state fund used to promote research and development, work often done in partnerships between businesses and universities.

"As a result, opportunities are being frozen as well," Jischke said.

Judy Briganti, president of the Indiana State Teachers Association, said the state's current revenue stream would not support existing programs and services in schools and allow them to meet recently adopted higher academic standards.

"The progress that public education is making cannot be continued if hundreds of teachers are laid off . . . and vital instructional programs are reduced or eliminated," she said.

Despite their call for action, the coalition's lack of agreement for solving the budget deficit and restructuring taxes was seen as troublesome to Senate Finance Committee Chairman Larry Borst, R-Greenwood.

INKY

-- Anonymous, January 12, 2002

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-- Anonymous, January 12, 2002