Indiana GOP Hits Gregg's Legislative Record

Indiana State GOP Chairman Eric Holcomb believes Democratic gubernatorial candidate John Gregg is embellishing his record during his tenure as Speaker of the Indiana House of Representatives, particularly on the issues of fiscal restraint and property tax reform. "Speaker John Gregg has consistently embellished his record as speaker, trying to claim credit for balanced budgets and reforming property taxes, but his Fiscal Report Card shows a record riddled with gimmicks and delayed payments, massive deficits and a refusal to repeal a tax harmful to Hoosier farmers and families," Holcomb said. He continued:

Holcomb says that when Gregg became Speaker back in 1996, Indiana had a $1.7 billion budget surplus. By the time he left office, the state had a budget deficit of nearly $1 billion, contradicting Gregg's claim that he always balanced the budget when he was Speaker. The final state budget under Gregg's leadership spent about a half billion dollars more than the state collected in revenues. When Gregg was asked by a reporter as the time where the money went, Gregg responded, "Well, it was spent."

After the state's property tax system was declared unconstitutional by the Indiana Tax Court, Gregg promised real property tax reform, but in the end Gregg chose "tweaking" of the existing system through "assorted tax reductions and controls" rather than comprehensive reform. Holcomb cites a special session called by former Gov. Frank O'Bannon in 2002 to provide relief to homeowners facing skyrocketing property taxes due to the inaction of the legislature under Gregg's leadership. "Gregg is trying to claim credit for reform when all he did was kick the can down the road a little further," Holcomb said. Holcomb also hit Gregg on his opposition to a repeal of the inheritance tax, which Gregg said at the time had "a big price tag on it."

Gregg denounced Holcomb's criticism of his record by calling him a "hatchet man." "Rather than own up to that record and defend it, John Gregg's campaign lashed out," Holcomb responded. "Is this the kind of rhetoric we should expect from a candidate for governor?" Holcomb asked.