INDIANAPOLIS -- Gov. Mitch Daniels and Indianapolis Mayor Greg Ballard on Thursday unveiled a new proposal to bail out the Capital Improvement Board, which faces a $47 million operating budget shortfall.

The Republicans said their plan will maintain Indianapolis' sports and convention facilities with less new tax money than a previous plan that failed to gain legislative approval in April.

The new plan would solve the CIB's gaping deficit with $20 million in tax increases and $27 million in savings.

Daniels' and Ballard's plan would eliminate the CIB and combine it with the Marion County Building Authority, which operates the City-County Building and the airport, bringing savings of $13 million in personnel and operating costs, 6News' Norman Cox reported.

Hotel, rental car and ticket taxes would be increased and tax money gleaned from the new JW Marriott Hotel would be funneled directly to the facilities' operating budgets.

"Here's a solution that involves $27 million in savings, $20 million in new revenue … no alcohol taxes, no food and beverage taxes, no taxpayers elsewhere paying anything additional," Daniels said.

"I said all along, I did not want any broad-based tax increases as part of this solution, and I'm really proud that they are not part of that solution," Ballard said.

The plan doesn't outline specific savings, but Daniels said two independent studies comparing convention and stadium costs between Indianapolis and several similar-sized cities showed that Indianapolis was overspending by a large margin.

Without mentioning former Mayor Bart Peterson by name, Daniels said he was embarrassed by the situation Ballard had to deal with when he took office.

"To tell you the truth it's a little embarrassing, the problem that this mayor inherited," Daniels said. "We've got a facility that's been spending three times as much as the one in Columbus per dollar coming in the door, (and) twice as much or more as several other cities."

The proposal didn't include any contributions from the Indianapolis Colts or the Indiana Pacers, but Daniels and Ballard each said they expect both to "step up soon," but they didn't discuss what that meant.

Democrats said they generally liked the plan, but questioned by Daniels would have two appointees on the Marion County Building Authority.

"The board dealing with existing issues like the jail or the Juvenile Detention Center, why the governor needs two appointees on that board, that's questionable," said Rep. William Crawford, D-Indianapolis.

The CIB situation will be taken up by legislators when they begin a special session to pass a state budget on June 11.