State Representative Candidate Steven L. Smith announces Opposition to Further Taxpayer Funding of Indianapolis Arenas

By Steven Lowell Smith

The latest budget approved by the Indiana General Assembly cut $297M from education. The same budget authorized the diversion of sales and income taxes of $8M/yr from the Indiana state general fund to the financially troubled Marion County Capital Improvement Board (CIB). This diversion is for the next 30 years. The CIB is the government entity that runs Lucas Oil Stadium, Conseco Fieldhouse, and the Indianapolis Convention Center. Additionally the CIB received a $27M interest free loan to tide over its financial shortages. My opponent, incumbent State Representative from the 78th District Suzanne Crouch (R) was the only representative from Southwest Indiana to vote for this budget.

Furthermore, this summer the Mayor of Indianapolis, Greg Ballard (R), approved a deal where the Indianapolis Pacers will no longer pay the $15M/yr in operating costs towards the management of Conseco Fieldhouse and they were given a $30M interest free loan to be forgiven at $10m/yr depending on whether the Pacers continue to stay in Indianapolis for the next three years. A review of the CIB’s 2009 financial statements shows that the CIB managed to turn their finances around and recorded operating income of approximately $10M. Now the CIB is facing a $25M negative swing to the downside.

The campaign rhetoric by the Republican candidates has been all about promoting smaller government and less spending yet we see our Governor Mitch Daniels (R), and the republican Mayor of Indianapolis deeply involved in the management of the CIB and authorizing taxpayer subsidies of these stadiums. Who are the indirect beneficiaries of these taxpayer subsidies? The billionaire owners of the Colts and the Pacers are the beneficiaries of this government largesse. Supporters of these policies have asserted that Professional Sports franchises bring in millions of dollars in tourism and entertainment while keeping Indianapolis in the on-deck circle to become a major American city. We can debate the amount of Hoosier pride that Professional Sports franchises bring to the state all day; however numerous studies show that Professional Sports are of dubious value to economic development and job creation.

In the course of my campaign I have knocked on thousands of doors and attended dozens of candidates meetings.

I have listened to laid off and displaced workers from Whirlpool and other Southwest Indiana businesses who have been waiting for months to begin their retraining classes so they can acquire a new skill in hopes of landing a new job that is less likely to be outsourced.

I have had many discussions with teachers right here in SW Indiana and across the state about the how damaging the cuts to education have been and continue to be.

I have heard tearful heart wrenching testimony from parents of children with developmental disabilities. Some of these parents are working two jobs to keep the bills paid while waiting day after day for the much needed news that they have been approved for a Medicaid waiver, yet our Governor continues to maintain that his budget cuts have not hurt ordinary Hoosiers.

I have heard about how Vanderburgh County has been a net tax giver to the statehouse for years, receiving fewer dollars from the state than we pay in taxes to the state.

I have learned recently that Indiana’s already high poverty rate is higher than the national average and that SW Indiana where District 78 is located is one of Indiana’s poverty pockets.

I have heard about Indiana’s looming pension fund crises. I have had elected officials tell me about our Unemployment Compensation Fund being several billion dollars in debt to the Federal Government. I have had business and community leaders tell me about the final leg of I-69 still being on the back burner of funding compared to road projects in the rest of the state.

Barring a dramatic upturn in Indiana’s economy and with the federal stimulus dollars running out, the upcoming state budget will present enormous challenges. To help alleviate some of the state’s budget problems I have put forward my ideas to help increase economic development and create jobs, including cost savings recommendations like a statewide smoking ban that would improve the health and welfare of thousands of restaurant, bar and casino employees and save the state millions of dollars in health insurance costs.
So what has any of this have to do with Southwestern Indiana and my campaign for the statehouse against incumbent Representative Crouch? Well, given the CIB’s shaky finances it is highly likely that the CIB will come to the legislature this fall hat in hand asking for more money. I have already pledge to vote no to any further taxpayer subsidies to the CIB.

With all the needs of Hoosier families, the need for infrastructure improvements, and all the other vital needs across the state, the state legislature needs to ask Mr. Irsay, the owner of the Colts and the Simon family, the owner of the Pacers to make a business decision about the financial viability of their franchises without taxpayer subsidies.

Southwestern Indiana needs a champion and defender in the statehouse who will fight for funding our needs, not giving priority to the needs of the Professional Sports Franchises in Indianapolis. I hope District #78 voters will review the positions of each candidate and give my campaign serious consideration.