The Associated Press

INDIANAPOLIS - Kathy Davis took office as Indiana's lieutenant governor Monday by pledging to "tackle tough issues" facing the state, including a struggling economy and $1 billion budget deficit.

"We will solve this, as we have before, with honest assessment, open discussion and cooperation," Davis said to several hundred people at a Statehouse ceremony.

Davis was sworn in by Chief Justice Randall Shepard shortly after the General Assembly voted unanimously to confirm her nomination, completing a change in top leadership caused by last month's death of Gov. Frank O'Bannon.

Davis, a seasoned government manager nominated by Democratic Gov. Joe Kernan, is the first woman to serve either as Indiana's governor or lieutenant governor. She noted that while thanking Kernan and his wife, Maggie, for "placing your confidence in me."

"I accept my new responsibilities gladly and wholeheartedly," Davis said. "You have made history here today. The women of Indiana thank you."

Former first lady Judy O'Bannon, in an invocation, said Davis had pledged herself to public service at a time of "great need and opportunity."

"We are so grateful for her - for her competence and compassion and selfless dedication to others," Mrs. O'Bannon said. "Fortify her for the challenges ahead."

After the Republican-ruled Senate voted 48-0 to confirm Davis, she was invited by Republican Senate President Pro Tem Robert Garton to the podium where lieutenant governors preside over the chamber.

"What an excellent-looking group you are," Davis said from the elevated perch.

She and Kernan then headed to the Democrat-led House, where her nomination was approved in a unanimous voice vote. She was escorted in by all 14 female representatives - seven Democrats and seven Republicans.

Both chambers recognized a moment of silence for O'Bannon before voting on the nomination.

Kernan won bipartisan praise for nominating Davis to become lieutenant governor - the post he held for nearly seven years before O'Bannon's death on Sept. 13.

Davis, 47, was state budget director under then-Gov. Evan Bayh, held the top position in the state's Family and Social Services Administration for two years under O'Bannon, and had been the Indianapolis city controller under Mayor Bart Peterson since January 2000.

She has earned a reputation as a pragmatic administrator with a firm grasp of her job and a diplomatic way of downplaying the politics involved. She is well-liked and respected by legislators from both major parties.

"I pledge to work actively and openly with you to tackle the tough issues that face us as a state," Davis said to lawmakers. "I ask for your help."

The full General Assembly was not expected to meet again until an organization day Nov. 18, which could stretch into a mini-session of sorts on property tax legislation.

House Speaker Patrick Bauer, D-South Bend, wants lawmakers to pass stricter controls on local levy increases and more tax breaks for homeowners. He says they are needed responses to a reassessment "gone wildly down the track."

The House Ways and Means Committee plans an initial hearing on property taxes Thursday, with other meetings around the state to follow.