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Indianapolis Star
05-05-2025
- Business
- Indianapolis Star
Lawmakers acted to rein in fellow state officials on no-bid contracts, luxury cars and more
From new rules over out-of-state travel to restricting luxury car purchases, lawmakers took steps this session to assert more oversight over other state officials. Some Republican lawmakers who supported the proposals were reticent to call out the behavior of specific officials, saying the moves weren't an "attack" on anyone. Secretary of State Diego Morales has been scrutinized since taking office in 2023 for issuing millions in no-bid contracts, hiring his brother-in-law to a six-figure job, and a 10-day India trip. A Democratic state lawmaker, Rep. Carey Hamilton of Indianapolis, says the oversight moves appear to be in response to a series of embarrassing headlines. From banning most no-bid contracts to restricting state officials from using tax dollars to buy luxury cars, the Republican-dominated legislature this session appeared eager to send a signal to constituents they weren't thrilled with some of the recent actions from their fellow GOP state officeholders. Secretary of State Diego Morales' no-bid contracts were not visible in the state's transparency portal? Senate Enrolled Act 5 put an end to that, requiring most contracts to be publicly bid and disclosed to the public within 30 days. Lieutenant Gov. Micah Beckwith and Morales are driving around in $90,000 SUVs provided by the state? House Enrolled Act 1518 made sure that from now on, public officials will have to settle for standard- or government-trim vehicles. Morales takes a 10-day economic trip to India but won't reveal who covered his travel costs? The new state budget requires annual travel reports for separately elected officials. And then lawmakers fixed their eyes on the budgets of many state offices. Beckwith's office, for example, ended up with about $3.7 million annually, less than half of what he requested, and about $500,000 less each year than his predecessor Suzanne Crouch received two years ago. Likewise, Morales' office was allocated $8.3 million for each of the next two years, less than the $10.7 million the Secretary of State's office got in the last two-year budget. To lawmakers who spearheaded the efforts, including state Sen. Scott Baldwin, R-Noblesville, the moves aimed to restore the legislative body's power, which some believe has waned in recent years. "We approve the budgets ... then we send everybody off into the wild to spend the money," Baldwin said when he introduced Senate Bill 5. "There is no legislative oversight." Democratic state Rep. Carey Hamilton of Indianapolis said lawmakers this year made "small steps in the right direction" but it wasn't enough. She credited a series of "embarrassing headlines" with convincing lawmakers to take action. "I was truly stunned to learn that a statewide elected official could put out a large no-bid contract, let alone that it could go to a campaign donor," said Hamilton, referring to Morales' contracts. "We've discovered over the past few years that there are significant holes in transparency in state government spending and also in campaign finance reporting. We definitely have work to do to stave off corruption with public dollars." 'This isn't an attack on anybody' The moves to rein in some state officials followed a year of unflattering headlines, from Morales giving spot bonuses to his brother-in-law, who has a six-figure job in the Secretary of State's Office to influential Southern Indiana former sheriff Jamey Noel's corruption scandal, which lawmakers addressed with another bill. "These are unprompted, unprovoked, unnecessary scandals and headaches," said Greg Shufeldt, an associate professor of political science at the University of Indianapolis. "When we think about political parties as brand labels, I think these scandals and headlines are bad for the brand. Efforts that the Indiana General Assembly does at reform, regardless of their efficacy or whether they have teeth, provide voters the bare-bones appearance of oversight." Some Republican lawmakers have been reticent to tie the changes to any one elected official. Rather, they said, more accountability would shield taxpayers no matter who is in office. "It's not an indictment of previous performance in any way; it's simply an effort to do better," said Baldwin, during discussions about Senate Bill 5. "This isn't an attack on anybody." Other Republicans also dodged naming names. State Sen. Blake Doriot, R-Goshen, who sponsored a bill banning taxpayer-funded luxury car purchases, was somewhat coy when IndyStar asked him earlier this session about whether he approved of Beckwith's $87,000 SUV purchase. "I really wouldn't like to step in that bear trap," Doriot said, before saying he wouldn't personally choose to drive that kind of vehicle. Others have been a bit more direct. State Sen. Chris Garten, R-Charlestown, directly criticized Morales' office at a budget hearing in March after the office printed Indiana road maps with the secretary of state's name in large lettering. "Quite frankly, to me, it looks like a campaign sign," Garten said. "I will be asking we decrease your budget by exactly that amount." It's not just Morales and Beckwith Nor were Morales and Beckwith's offices the only ones scrutinized. Lawmakers trained their sights on other government officials too. For example, lawmakers took away some control of TrustINDiana, the state's local government investment pool, from state treasurer Daniel Elliott, putting a board in charge of overseeing the program. Elliott, however, remains the administrator of the program at the direction of the board. While Elliott at first called foul on what he described as a "backroom deal" to give banking executives more control over the fund, proponents of the change said the $3.4 billion pot of money needed more eyes on it. At the end of the legislative session though, Elliott seemed more amenable to the board, praising lawmakers and Gov. Mike Braun for standing up to special interests and safeguarding TrustINdiana. The treasurer's office said the final version allows the board to not be entirely run by bankers. "We appreciate the work done ... to help the board be more representative of the beneficiaries of the program," his office said. Lawmakers also approved more oversight on jail commissary funds, requiring quarterly reporting, more audits, and new record-keeping training requirements. That followed a scandal involving Noel, the former sheriff who last year was sentenced to 15 years in prison related to taking improper payments from one such fund. 'Fox guarding the henhouse' It remains to be seen what impact the legislation will have in the long run. Hamilton, the Indianapolis Democrat, pointed out that even Senate Bill 5, which aimed to increase transparency, was watered down throughout the legislative session via amendments. One amendment exempts state agencies from disclosing legal services contracts in the state transparency portal, such as the one Beckwith signed with a law firm closely connected to the church where he still works as a pastor. Hamilton said she would like to see the legislature go further in coming years. "We have the fox guarding the henhouse," Hamilton said. Indiana generally scores low on rankings of transparency and oversight in state government. A 2020 ranking by the nonpartisan Coalition for Integrity called the S.W.A.M.P. Index, which measured the efficacy of state ethics rules, had Indiana ranked in the bottom six states on anti-corruption standards. The group in 2022 rank ed Indiana dead last when it comes to campaign finance transparency. Shufeldt said he couldn't comment on the specifics of this session's legislation but was "skeptical" that any of it would result in a big change. "The Indiana Generally Assembly themselves are regulating industries they financially benefit from or are working in," Shufeldt said. "When there isn't this drip, drip, drip of bad news or scandals or unforced errors, do they return to this or add teeth to this?"
Yahoo
14-02-2025
- Business
- Yahoo
Indiana House passes nuclear-booster; Senate resists property tax relief changes
House lawmakers advanced a priority bill for the Republican caucus while senators resisted attempts to expand property tax relief. (Leslie Bonilla Muñiz/Indiana Capital Chronicle) Hoosier House Republicans on Thursday approved legislation incentivizing nuclear power development — despite potential risks for utility customers — and advanced a contentious school referendum measure. Senators, meanwhile, rejected bipartisan efforts to expand property tax relief. The wide-ranging House Bill 1007 would let public utilities ask for permission from utility regulators to spend money on small modular nuclear reactors (SMRs) and recover their costs — before getting certificates of public convenience and necessity. And it creates a 20% tax credit for SMR manufacturers. The U.S. hosts no operational SMRs. Across the globe, only China and Russia have functional SMRs. Rolls Royce, which has a major manufacturing footprint in Indiana, is exploring construction of an SMR with a capacity of up to 470 megawatts. Democrats argued the changes could leave utility customers on the hook for expensive projects — even if they're abandoned without providing any additional energy. Rep. Carey Hamilton, D-Indianapolis, said Indiana utilities have already abandoned projects, like the unfinished Marble Hill Nuclear Power Station, 'on the backs of ratepayers.' Most Hoosiers get their electricity from one of the state's 'big five' investor-owned utilities. They're monopolies with their own exclusive territories, and are regulated by the state. Rep. Matt Pierce, D-Bloomington, said the legislation makes 'guinea pigs' out of customers who 'bear the cost of a speculative venture.' It offers a way, under certain circumstances, for utilities to profit off projects even as they pass the expenses on, he said. 'If SMRs are so good, let's have some good old-fashioned capitalism,' Pierce said. 'Let's let the Wall Street investors, the utility shareholders, let's have them take on the risk of seeing if the technology works, and if it turns out it does, then let them benefit from the risk that they put into their investment.' Supporters, however, argued the legislation creates a path to lower bills. 'When I hear people say we need to get our rates down on electricity, … I think nuclear is the answer,' said Rep. Matt Lehman, R-Berne. 'The answer is, the more we build these, the cheaper the energy is going to get. I think now's the time to move on these. I really do.' Other provisions seek to limit coal plant closures, expedite the approval processes for large-load projects and provide standards for big customers' financial assurances and for cost-recovery mechanisms. The chamber approved the legislation along party lines, on a 67-25 vote. House lawmakers also advanced legislation limiting school referendums to general elections — a priority for Gov. Mike Braun. Author Rep. Tim Wesco, R-Osceola, noted more voters participate in general elections. Democrats opposed House Bill 1681, arguing that it strips local control. Rep. Sue Errington, D-Muncie, said that just over half of schools have never put such a funding mechanism on the ballot. Of those that do make it before voters, roughly 36% pass. She worried that schools, if forced onto a two-year schedule that is also out of sync with the school calendar, would struggle to budget accurately or to submit their budgets to the state on time. 'They have to gamble, I suppose, on whether they're going to win or lose the referendum and how much money they're going to have,' Errington added. The bill passed roughly along party lines, with 64 supporting votes to 31 opposing votes. Across the hallway, senators rejected bipartisan attempts to amend a property tax relief bill — striking provisions that would have expanded credits for renters and Hoosiers over the age of 65. A Senate committee majorly amended the property tax relief proposal earlier this week. In recent years, homeowners saw their assessed values skyrocket while bills jumped by double digits. An amendment from Sen. Fady Qaddoura, D-Indianapolis, targeted the state's renters, who also saw their monthly payments soar. The current tax credit for renters is $3,000 and Qaddoura would gradually increase that credit to $9,000. The average renter would see a savings of $270 at a cost of $10 million to local units of government and $17 million to state coffers, he said. Locals, lawmakers struggle to compromise on Indiana property tax relief For this reason, Sen. Travis Holdman asked his colleagues to reject the amendment to Senate Bill 1, which he authored. 'The fiscal impact of Senate Bill 1 exceeds $600 million,' Qaddoura countered. 'A $10 million impact to locals and $17 million to the state is only a fraction of that.' The amendment failed on a party-line vote, or 36-10. The majority of senators also rejected four amendments from a fellow Republican, who is not a member of the caucus. Sen. Mike Young, R-Indianapolis, would no longer charge seniors property taxes, regardless of income — similar to the state of Alabama. He said two other states don't bill those over the age of 65 under a certain income. 'Although I'm fortunate enough to be able to afford my property taxes, a lot of people aren't,' he said. He said it would cost $1.6 billion, with the state offsetting the cost to local governments. The change wouldn't be enacted until roughly 2030, when the state is set to pay down its sole insolvent retirement fund. At such a time, he said that senators could identify other funds to make the proposal feasible. Holdman, R-Markle, again protested, calling the proposal 'creative' but flagging the lack of income testing. '… which means the richest person living in your community pays no property tax whatsoever and they're probably the most stable person to pay that,' he said. Six Republicans joined nine Democrats and voted 'yes,' while one Democrat voted against the amendment. It failed on a 15-31 vote. Young's three other amendments also failed to get enough votes to advance. The bill will receive a full vote in the Senate Chamber next week. SUBSCRIBE: GET THE MORNING HEADLINES DELIVERED TO YOUR INBOX
