INDIANAPOLIS | Given a second term in office, Gov. Mitch Daniels says he would repackage a proposed lease of the Hoosier Lottery as a way to make college more affordable.
The Republican governor pitched lottery privatization a year ago in an attempt to stem what he called "brain drain." His plan to pour at least $1 billion into university research endowments and merit scholarships for top high school graduates who pledge to stay in Indiana following their studies cleared the GOP-led state Senate only to stall in the Democratic-controlled House.
Daniels discussed his tax plan, the lottery, South Shore expansion and several other topics in a year-end interview with The Times. Check out the full question-and-answer session in next Sunday's Forum section.
Daniels decided to put the lottery plan on hold next year while lawmakers concentrate on corralling runaway property taxes. But the governor told The Times a 2009 lease deal "still has great possibilities."
"I expect to re-propose a transaction but with the proceeds maybe going in a slightly different direction -- probably aimed very much at the affordability of higher education for our low- to moderate-income kids," Daniels said. "I forgot about any idea of proposing it in '08 when it became obvious that we would be working on property tax reduction."
Property taxes took center stage this summer when a slew of factors, including a new assessment system and the elimination of the business inventory tax, collided to send residential bills soaring an average of 24 percent. The governor has presented lawmakers with a multifaceted plan designed to cut homeowners' bills by about 40 percent and cap future increases.
In April, the Daniels administration said at least two firms were willing to pay more than $2 billion up front and another $200 million a year for a 30-year deal to run the Hoosier Lottery and collect its profits. But Democratic House Speaker Pat Bauer, D-South Bend, was unmoved by the dollars signs.
Some rank-and-file Democrats have stressed the need to keep college affordable, but it's not clear whether they could get past their privatization qualms.
Next year's election should go a long way toward deciding the future of the Hoosier Lottery. Daniels must win a second term to pursue a lease deal. And Bauer needs to retain or strengthen his bare-minimum 51-49 House majority if Democrats are to stand in the way.
