The Indiana House Ways and Means Committee just passed HJR 1, the proposed permanent property tax caps, on a 21-to-3 vote.

The measure now goes to the full House.  An identical proposal is on its way to the state Senate floor.

With the State of the State address coming tomorrow night, I wondered what city leaders might want to hear from the Governor.

Carmel’s Mayor Jim Brainard says he’ll listen for the topic of property tax caps.  Brainard says he supports the caps proposed by Governor Daniels.  Brainard admits it’s “somewhat easier for me to say than other mayors because Carmel doesn’t butt-up against the caps.  We’re substantially lower than the caps.” 

Brainard says the caps are important for people on fixed incomes.  And, on a broader level, he sees value for economic development because “we think it’s important … to be able to say [to a corporate prospect] this is the maximum that you’re going to pay in the State of Indiana.”

Brainard acknowledges the need to find other sources of revenue.  “It just takes better, stronger management, I think, to work in this environment.  But, I have every confidence that most cities in Indiana can do that.”

State Representative Craig Fry sometimes seems to seek out controversy but says he doesn’t like the fact that he was the only “no” vote when the Indiana House voted 93-to-1 on the property tax plan from Governor Mitch Daniels.  “Its no fun being alone,” said Fry.

He’s done it before, however.  Fry was the only “no” vote on the bill to repeal the inventory tax in 2002.  Says Fry, “I was right then, too.”  He thinks the advantages of the governor’s plan are oversold and believes part of the property tax problem at the moment comes from a shift to homeowners caused by the inventory tax repeal.

The 2008 General Assembly begins tomorrow (though the halls are full of lawmakers and even a few lobbyists today.)  How long will it last?

The scheduled end date is March 15th and one lobbyist, trying to measure his pain tolerance, today calculated that to be 70 days from now.  A Senate staffer, he said, put it at 49 days, not counting weekends and holidays. 

It could also be a lot longer if lawmakers don’t find a compromise on property tax reform.

The Indiana Realtors employed a new technique this week to get their message through to state lawmakers.  (The message deals with eliminating elected assessors.) 

They produced what looks like a TV ad and e-mailed it to every legislator.  The realtors also want to get that message to the public so they produced radio ads and made a statewide buy.

  Governor Mitch Daniels says he will start working on the State of the State Address over the holiday weekend.  He already has a main theme:  Property tax relief.  In fact, Daniels says that his 2008 agenda will include property tax relief and “not much” else.  By his assessment (and most others, not doubt), that’s a big departure from previous years.   His plan to privatize the lottery will wait at least until 2009. 

Its more evidence that Daniels recognizes that his re-election may well depend on the delivery of property tax relief.  (He heard the Ballard alarm.)

 By the way, the governor says his family will have turkey on Thanksgiving but this year it won’t be deep fried turkey.