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Indianapolis Star
19-06-2025
- Business
- Indianapolis Star
Diego Morales: 'I will not apologize' for overseas trips, no-bid contracts for campaign donors
A defiant Secretary of State Diego Morales is defending himself to lawmakers against criticism after Morales' no-bid contracts to campaign donors, spot bonuses to a relative, overseas trips, absence at a crucial legislative budget hearing, alleged election law violation, and $90,000 taxpayer-paid luxury SUV. Morales, who appeared before the State Budget Committee on June 18 to request budget augmentations totaling more than $10 million from various state funds, faced a grilling — and criticism — from both Republican and Democratic lawmakers. "I will not apologize to anyone because my work ethic is unmatched," Morales told lawmakers. "I'm going above and beyond the call of duty." Morales said he's been "criss-crossing the state" in record time by visiting all 92 counties, as well as arriving at the Statehouse daily around 5 a.m. He also asserted he's never used taxpayer money to fund any of his overseas travel, and that he purchased a new luxury SUV because he had put too many miles on his previous vehicle. He defended missing a legislative budget hearing earlier this year to go on an overseas trip by saying he was "not the first secretary of state who has missed one of these." Those explanations didn't appear to satisfy lawmakers on both the left and right. In fact, some of the most pointed questions and comments came from Republican state Sen. Chris Garten, R-Charlestown. "I just want to be on the record as saying you have a vehicle that cost almost twice as much as the average salary of a Hoosier," Garten said. Garten then pressed Morales about whether any of the expenses slated to be funded by the budget augmentations were to financial contributors to Morales' campaign. The biggest augmentation request was for $8.1 million to fund IT upgrades and personnel, subject to sufficient revenue from the Electronic and Enhanced Access fund. "A lot of people contribute to my campaign," Morales responded to Garten. "It's a yes or no," Garten said. "I think Indiana Hoosiers deserve to know that. ... I would like them to be identified." Morales acknowledged that some firms with contracts were campaign donors, including contractor MTX, which donated at least $80,000 to Morales and has been paid more than $2.5 million in the 2025 fiscal year, according to secretary of state records. But he defended the deals to companies as experts who are "getting the job done." Meanwhile, state Sen. Fady Qaddoura, D-Indianapolis, criticized Morales for failing to meet his basic duties or being transparent with taxpayers. "I'm disappointed in your leadership," Qaddoura said. "I'm disappointed in the way you're leading your office. Please do better for the state of Indiana."
Yahoo
12-05-2025
- Business
- Yahoo
Should more state taxes go toward MLS stadium? $2B revenue shortfall paused those talks
Indianapolis could have secured more state tax dollars to attract a future Major League Soccer stadium and team during this legislative session, if not for the disappointing revenue forecast that projected $2 billion less in state revenue than anticipated over the next two years. There were discussions about inserting into the state budget bill language that would allow more tax dollars collected nearby to go toward construction costs of such a stadium. Once the revenue forecast hit, it no longer seemed like quite the right time to do that, and that idea was temporarily tabled, according to a person familiar with the discussions. This has little to no bearing on the future MLS prospects for the capital city ― those talks are very much alive, and there's plenty of time to make such a change ― but it's one of many consequences of the vast revenue shortfall, among other cuts. The talks also provides a clue into what greater state involvement in the quest for a state MLS team could look like, since the request could come back in the future. "The opportunity for Indianapolis to secure a Major League Soccer club remains promising," Mayor Joe Hogsett said in a statement to IndyStar. "The city is engaged in ongoing conversations with MLS and Commissioner Don Garber, and is actively working with business and civic leaders to position Indianapolis as the next MLS city, further boosting our reputation as a global sports capital." MLS prospects have been the subject of intrigue in Indianapolis since last summer, when the MLS commissioner said Indianapolis was doing "all the right things" to acquire a team. There's still no timeline on if or when the MLS plans to add another franchise or relocate a team; an ownership group has not yet gone public, though the Simon family might be involved. Adding to the intrigue this year, Commissioner Don Garber came to town in February to meet with Gov. Mike Braun. State lawmakers created the pathway to finance a new downtown sports stadium, originally with a minor league soccer stadium in mind, in 2019. The mechanism was called a Professional Sports Development Area, a taxing district that could capture new state and local sales and income taxes generated in a one-mile radius to put toward paying off the cost of building the stadium. More: Indiana lawmakers passed the state budget over night. Here are the biggest winners and losers A stipulation in that bill capped the amount of state taxes that could go toward the construction costs at $9.5 million a year. That was the cap being discussed during this legislative session, given that a major league stadium would likely cost far more than a minor league stadium. The State Budget Committee has yet to approve the financing for a potential MLS stadium. Removing the cap might have provided some more flexibility with a financing plan. But an MLS stadium is still years away from being reality, so the legislature will have more opportunities in the future to consider this proposal. A spokesperson for Sen. Ryan Mishler, R-Mishawaka, the top budget writer in the Senate, said he is "unable to comment." The House budget writer, Rep. Jeff Thompson of Lizton, did not respond to a request for comment. Contact IndyStar state government and politics reporter Kayla Dwyer at kdwyer@ or follow her on X @kayla_dwyer17. Sign up for our free weekly politics newsletter,Checks & Balances, curated by IndyStar political and government reporters. This article originally appeared on Indianapolis Star: $2 billion revenue shortfall hit pause on MLS action this session


Indianapolis Star
12-05-2025
- Business
- Indianapolis Star
Should more state taxes go toward MLS stadium? $2B revenue shortfall paused those talks
Indianapolis could have secured more state tax dollars to attract a future Major League Soccer stadium and team during this legislative session, if not for the disappointing revenue forecast that projected $2 billion less in state revenue than anticipated over the next two years. There were discussions about inserting into the state budget bill language that would allow more tax dollars collected nearby to go toward construction costs of such a stadium. Once the revenue forecast hit, it no longer seemed like quite the right time to do that, and that idea was temporarily tabled, according to a person familiar with the discussions. This has little to no bearing on the future MLS prospects for the capital city ― those talks are very much alive, and there's plenty of time to make such a change ― but it's one of many consequences of the vast revenue shortfall, among other cuts. The talks also provides a clue into what greater state involvement in the quest for a state MLS team could look like, since the request could come back in the future. "The opportunity for Indianapolis to secure a Major League Soccer club remains promising," Mayor Joe Hogsett said in a statement to IndyStar. "The city is engaged in ongoing conversations with MLS and Commissioner Don Garber, and is actively working with business and civic leaders to position Indianapolis as the next MLS city, further boosting our reputation as a global sports capital." MLS prospects have been the subject of intrigue in Indianapolis since last summer, when the MLS commissioner said Indianapolis was doing "all the right things" to acquire a team. There's still no timeline on if or when the MLS plans to add another franchise or relocate a team; an ownership group has not yet gone public, though the Simon family might be involved. Adding to the intrigue this year, Commissioner Don Garber came to town in February to meet with Gov. Mike Braun. State lawmakers created the pathway to finance a new downtown sports stadium, originally with a minor league soccer stadium in mind, in 2019. The mechanism was called a Professional Sports Development Area, a taxing district that could capture new state and local sales and income taxes generated in a one-mile radius to put toward paying off the cost of building the stadium. More: Indiana lawmakers passed the state budget over night. Here are the biggest winners and losers A stipulation in that bill capped the amount of state taxes that could go toward the construction costs at $9.5 million a year. That was the cap being discussed during this legislative session, given that a major league stadium would likely cost far more than a minor league stadium. The State Budget Committee has yet to approve the financing for a potential MLS stadium. Removing the cap might have provided some more flexibility with a financing plan. But an MLS stadium is still years away from being reality, so the legislature will have more opportunities in the future to consider this proposal. A spokesperson for Sen. Ryan Mishler, R-Mishawaka, the top budget writer in the Senate, said he is "unable to comment." The House budget writer, Rep. Jeff Thompson of Lizton, did not respond to a request for comment. Contact IndyStar state government and politics reporter Kayla Dwyer at kdwyer@ or follow her on X @kayla_dwyer17.

Yahoo
21-04-2025
- Business
- Yahoo
‘Sin tax' looms over Indiana budget as legislators face shortfall of more than $2 billion
Increasing 'sin taxes' loomed over the Indiana budget as it was discussed in conference committee Monday, but one of the budget architects reiterated the increase was 'on the table' along with increasing other revenue streams. House Bill 1001, the biennium state budget, was discussed Monday because it was amended in the Senate. But the meeting was held a handful of days after the State Budget Committee received a revenue forecast, which projected a more than $2 billion shortfall for the next budget cycle. Sen. Fady Qaddoura, D-Indianapolis, asked the conference committee chairman and budget architect Jeffery Thompson if Republican leaders have decided to increase the sin taxes – cigarette, alcohol and gaming taxes – as well as delaying reductions to income taxes, management care assessment fees and school vouchers. 'Everything is on the table right now. All topics have to be discussed at this point, and we'll kind of see how it shakes out in the next 48 hours,' Thompson said. Raising cigarette taxes by $2 a pack would result in an additional $800 million over the 2-year budget, Qaddoura said. Increasing alcohol and gaming taxes would raise $250 million over the biennium, he said. Delaying reductions to income taxes to 2027 would yield $300 million, Qaddoura said. Adjusting the management care assessment fee could result in about $1 billion in savings for the state budget, he said. 'The total for these ideas, over the next biennium, is north of $3 billion. None of these ideas raise taxes on property taxes, income taxes or sales taxes,' Qaddoura said. As Republican leaders touted 'progress made' over the weekend on the budget, Qaddoura said it was done 'behind closed doors.' 'The public deserves full transparency in these decisions because there's nothing secretive about it. $2.4 billion are needed. The solutions are in front of our own eyes, and the bill is going to come before us for a vote. I don't understand why this top secret negotiation is happening behind closed doors,' Qaddoura said. Rep. Ed DeLaney, D-Indianapolis, said the state has 'under taxed' the sin taxes. 'We don't seem to want to tax sin the way we used to and the way we know how,' DeLaney said. 'We could do better on that and help our people.' Rep. Mike Andrade, D-Munster, said in addition to increasing the cigarette tax, he'd like to see the state consider a fireworks tax. In Lake County, firework sales skyrocket, especially around the Fourth of July, Andrade said. With Senate Bill 1, the property tax relief bill, now signed into law, Lake County could benefit from an additional revenue stream, Andrade said. For example, as it's likely fire departments will see a negative impact to revenues from Senate Bill 1, Andrade said the firework tax could fund fire departments. 'If you're buying fireworks and you're out there just blowing them off, you're just blowing off money. Why don't we tax it? It's not a luxury,' Andrade said. As the committee met the day after 4/20, Andrade said the legislature should consider legalizing marijuana, in some form, to create an additional taxing stream. Michigan, Illinois, Kentucky and Ohio have all legalized marijuana for medical and/or recreational use. 'I think we need to have those conversations as well, that we're losing those revenue dollars to our neighbors around our state,' Andrade said. After the legislators addressed the budget, eight people testified before the committee with suggestions or requests for future funding. Joel Hand, with the Indiana Coalition for Public Education and the American Federation for Teachers Indiana, said the state could save over $81 million in the biennium by capping the school voucher program at its current levels. 'This is an expansion of school vouchers to make it universal that we simply cannot afford, and we ask that you put a cap on that choice program effective today for the 2-year biennium,' Hand said. Tiffany Nichols, advocacy director of the Lung Association in Indiana, said the legislature should increase the cigarette tax by $2 a pack and to establish taxing parity among all tobacco products. Indiana's cigarette tax hasn't been increased since 2007, Nichols said, and it remains the lowest in the country at 99 and a half cents per pack. Research has shown that increasing tobacco prices 'is one of the most effective ways to reduce use.' A 10% price increase typically reduces cigarette consumption by 4% among adults and 7% among youth, Nichols said. 'A $2 cigarette tax increase would not only prevent thousands of Hoosiers from dying of tobacco related deaths, but also generate nearly $371 million in annual revenue that could support tobacco prevention, Medicaid and other budget shortfalls,' Nichols said. After discussion, the committee went into recess. The members did not reconvene for further discussion or a vote by presstime. akukulka@


Chicago Tribune
21-04-2025
- Business
- Chicago Tribune
‘Sin tax' looms over Indiana budget as legislators face shortfall of more than $2 billion
Increasing 'sin taxes' loomed over the Indiana budget as it was discussed in conference committee Monday, but one of the budget architects reiterated the increase was 'on the table' along with increasing other revenue streams. House Bill 1001, the biennium state budget, was discussed Monday because it was amended in the Senate. But the meeting was held a handful of days after the State Budget Committee received a revenue forecast, which projected a more than $2 billion shortfall for the next budget cycle. Sen. Fady Qaddoura, D-Indianapolis, asked the conference committee chairman and budget architect Jeffery Thompson if Republican leaders have decided to increase the sin taxes – cigarette, alcohol and gaming taxes – as well as delaying reductions to income taxes, management care assessment fees and school vouchers. 'Everything is on the table right now. All topics have to be discussed at this point, and we'll kind of see how it shakes out in the next 48 hours,' Thompson said. Raising cigarette taxes by $2 a pack would result in an additional $800 million over the 2-year budget, Qaddoura said. Increasing alcohol and gaming taxes would raise $250 million over the biennium, he said. Delaying reductions to income taxes to 2027 would yield $300 million, Qaddoura said. Adjusting the management care assessment fee could result in about $1 billion in savings for the state budget, he said. 'The total for these ideas, over the next biennium, is north of $3 billion. None of these ideas raise taxes on property taxes, income taxes or sales taxes,' Qaddoura said. As Republican leaders touted 'progress made' over the weekend on the budget, Qaddoura said it was done 'behind closed doors.' 'The public deserves full transparency in these decisions because there's nothing secretive about it. $2.4 billion are needed. The solutions are in front of our own eyes, and the bill is going to come before us for a vote. I don't understand why this top secret negotiation is happening behind closed doors,' Qaddoura said. Rep. Ed DeLaney, D-Indianapolis, said the state has 'under taxed' the sin taxes. 'We don't seem to want to tax sin the way we used to and the way we know how,' DeLaney said. 'We could do better on that and help our people.' Rep. Mike Andrade, D-Munster, said in addition to increasing the cigarette tax, he'd like to see the state consider a fireworks tax. In Lake County, firework sales skyrocket, especially around the Fourth of July, Andrade said. With Senate Bill 1, the property tax relief bill, now signed into law, Lake County could benefit from an additional revenue stream, Andrade said. For example, as it's likely fire departments will see a negative impact to revenues from Senate Bill 1, Andrade said the firework tax could fund fire departments. 'If you're buying fireworks and you're out there just blowing them off, you're just blowing off money. Why don't we tax it? It's not a luxury,' Andrade said. As the committee met the day after 4/20, Andrade said the legislature should consider legalizing marijuana, in some form, to create an additional taxing stream. Michigan, Illinois, Kentucky and Ohio have all legalized marijuana for medical and/or recreational use. 'I think we need to have those conversations as well, that we're losing those revenue dollars to our neighbors around our state,' Andrade said. After the legislators addressed the budget, eight people testified before the committee with suggestions or requests for future funding. Joel Hand, with the Indiana Coalition for Public Education and the American Federation for Teachers Indiana, said the state could save over $81 million in the biennium by capping the school voucher program at its current levels. 'This is an expansion of school vouchers to make it universal that we simply cannot afford, and we ask that you put a cap on that choice program effective today for the 2-year biennium,' Hand said. Tiffany Nichols, advocacy director of the Lung Association in Indiana, said the legislature should increase the cigarette tax by $2 a pack and to establish taxing parity among all tobacco products. Indiana's cigarette tax hasn't been increased since 2007, Nichols said, and it remains the lowest in the country at 99 and a half cents per pack. Research has shown that increasing tobacco prices 'is one of the most effective ways to reduce use.' A 10% price increase typically reduces cigarette consumption by 4% among adults and 7% among youth, Nichols said. 'A $2 cigarette tax increase would not only prevent thousands of Hoosiers from dying of tobacco related deaths, but also generate nearly $371 million in annual revenue that could support tobacco prevention, Medicaid and other budget shortfalls,' Nichols said. After discussion, the committee went into recess. The members did not reconvene for further discussion or a vote by presstime.