INDIANAPOLIS – There’s more at stake in the upcoming special session than just getting a state budget approved.

Gambling issues are still hovering, lawmakers will have to deal with a bailout of the Indianapolis Capital Improvement Board and Gov. Mitch Daniels is trying to salvage an otherwise lackluster legislative agenda with a win.

“The danger of a special session is, No. 1, it costs money. And No. 2, you start all over again. And you go round and round and don’t know where you land. We were in a solid place,” Democratic House Speaker Pat Bauer said. “I think when you have a special session, … it’s open to everything.”

The legislature failed last week to adopt a new budget largely because of friction over cuts, causing the need for a special session before the current budget runs out June 30.

Daniels declined to set a date yet, and it’s unclear whether the session will be a one- or two-day affair in which legislators merely adopt a pre-negotiated budget, or whether they will start at the beginning and stay for weeks.

Conventional wisdom is that a governor always wins in special session. After all, he looks like the adult calling out the kids for not doing their homework.

Rep. Win Moses, D-Fort Wayne, said this is mainly because the governor has the bully pulpit and can more easily control the message.

“And often he can maneuver better in a special session – talk to legislators individually and reason with them,” he said. “New revenue numbers and time can only help his case.”

A reasonable budget might end up being Daniels’ only accomplishment this year as his agenda took a beating.

His bid for constitutional property tax caps, local government overhaul, an automatic taxpayer refund and pushing dollars to the classroom all failed. His only win was a small bill clarifying teacher immunity in classroom discipline lawsuits.

Daniels said Bauer unilaterally killed most of his agenda but also didn’t quarrel with his lack of success.

“Sure I’m disappointed,” he said.

As for winning in special session, the governor said that is not on his mind.

“I really don’t care,” Daniels said. “All history will note or remember about this is the result. Did Indiana find a way in the toughest circumstances we’ve known to hold it together and protect taxpayers, or did we go down the rathole with so many other states and make a bad situation much worse on working families in Indiana. That’s all that matters to me.”

Daniels is hoping legislative leaders limit the special session to work on the budget and a plan to help elected officials in Marion County close a $47 million operational shortfall for the city’s sports and convention facilities.

Senate President Pro Tem David Long, R-Fort Wayne, said the bill related to the Indianapolis improvement board died on the last night of the session. He said he hopes discussions focus on raising revenue from the tourism industry, such as hotel and car taxes as well as ticket taxes.

“In the end we’ll see where that discussion goes,” Long said. “It’s a distraction, and it won’t be allowed to disrupt our budgeting.”

Long also said the state budget and gambling “aren’t going to be simpatico.”

But keeping the issues separate might be difficult, especially because taxes from expanding gambling are often used to prop up state coffers.

The gambling lobby reared its head on the last day of session, pushing a number of items including moving a Gary riverboat, casino tax breaks and even a referendum for Fort Wayne.

The surge was short-lived, but a special session gives the powerful lobby another chance.

Daniels at first said he hopes the legislative leaders say that gambling issues are out of bounds for a special session.

But minutes later, he left the door wide open.

“I’ll just say this. Anything that can contribute to a pro-taxpayer result on the budget I’m open to listening to,” Daniels said. “That includes ulterior agendas that somebody might have out there.”

House Republican Leader Brian Bosma already is making noise about the constitutional property tax caps resolution again, something Democratic leaders said lawmakers can focus on next year.

“I think that is a top priority for those of us who are concerned primarily about taxpayers, especially in these difficult times,” Bosma said. “That assurance that the caps will be on the ballot in 2010, I think, is reassuring to Hoosier taxpayers.”

And he also feels some education-overhaul items need to be included in the budget, including no limits on charter schools and a new tax credit program for private schools.

A special session costs money, an estimated $75,000 a week.

The majority of the expense comes from an increased per diem legislators receive to cover food and lodging.

Daniels didn’t seem concerned, saying the state might save $500 or $1,000 for every dollar the special session costs when compared with the bloated budget nearly passed.

“It will be the best return the taxpayers of Indiana ever got,” he said.

nkelly@jg.net