SOUTH BEND — Optimism is in the air as the countdown to kickoff at Notre Dame Stadium continues. But could a winning 2008 season for the blue and gold also mean big green for local governments?

The Fighting Irish kick off against San Diego State on Saturday, and after last year's lackluster 3-9 season, many local businesses are crossing their fingers for a rebound in 2008.

But so are local governments, who hope a boost in tourism revenue could one day help pay for city and county services.

As the final preparations go up for opening weekend, it's clear, excitement is becoming contagious on campus.

"There's a lot of loyal fans for Notre Dame," said Irish fan Emma Geczy.

"We're excited," agreed fan Chris Russell. "We're excited every year, even when it's a bad year. [But I have] high hopes this year. Much higher!"

But there are some unanswered questions.

At the top of the list for local businesses like hotels, restaurants and gas stations? After a tough 2007 season that left the Irish at 3-9, are profits headed higher too?

"As Notre Dame goes, so goes the hotel market here," said South Bend Downtown Holiday Inn Vice President of Business Development Roger DePoy.

And at most local hotels early indications of the impact are positive.

"We're well ahead of where we were last year," said DePoy. "It's been a combination of hard work and a lot of optimism for the upcoming season."

"I think we can rebound, and it's looking promising," agreed South Bend-Mishawaka Convention and Visitor's Bureau Executive Director Gary Wheat. "We're a little bit down from last year about this time [overall], but we're looking steady. People are excited, but still unsure about what the season holds."

It's one reason why no one's playing the fight song for victory quite yet.

"With the economy the way it is, everybody's being more cautious with their dollars -- especially their leisure dollars. So, I think right now we're kind of taking a wait and see approach," said Wheat.

It's the same approach local leaders are taking on another long fought battle: a 1% boost in local hotel/motel taxes.

Many local governments face millions of dollars in cuts over the next few years because of a loss in revenue under Indiana's new property tax caps. And some say, taxing tourists to make up the loss is a "no brainer."

"That's a tax that doesn't really affect our citizens as much as it affects our visitors," said St. Joseph County Commissioner Steve Ross (D).

Ross is one of a number of local leaders that have been pushing for the hotel/motel tax increase for several years. Other county commissioners, county councilman, city councilman and South Bend Mayor Steve Luecke have also voiced support for the plan.

"We've been asking for a small percentage increase for several years now, and now, this is critical. We're talking about laying people off, or compromising safety," said Ross.

But there's a catch.

State lawmakers have to sign off on the plan, and so far, very few have.

"They're worried, if we do it in one county, it'll mushroom across the rest of the state. But, if they don't want us to take a hotel/motel tax or some other recreational tax like a beverage tax, then they need to provide the income," said Ross.

Still, some aren't sure the hike is such a good idea.

"I'd be somewhat careful about hitting that too hard, because we need to compete with other communities," said DePoy. "If someone is sitting on the fence trying to decide if they want to come here for an event, or go to New Buffalo, or St. Joseph, or Kalamazoo, we're going to kill the goose that lays the golden egg if we try to go too deep into that."

"It could," agreed Wheat. "But, from a standpoint of helping the community, it could also go a long way to promote tourism and market what we have here. Up the road in Chicago, for example, it's quite a great deal more percentage wise for hotel/motel taxes. So, it does vary. But a small percentage increase could solve some problems and also help drive the market and get more people in."

Still, the debate over who gets "the green" this season is likely a moot point, because state lawmakers likely won't consider the issue until they meet again for their spring session in January.

But most expect the tax hike won't be a simple sell to the legislature when that happens.

Getting lawmakers on board with the plan will likely require the support of either Indiana House Speaker B. Pat Bauer (D-South Bend) or Indiana Senate Budget Committee Chairman Luke Kenley (R-Noblesville). Neither has supported efforts to implement the new tax during previous sessions.

WSBT's calls to both lawmakers Tuesday were not returned.

Even though state legislators did approve a similar tax hike recently in Marion County -- home to much larger Indianapolis -- the general belief is that the General Assembly wants to limit taxes that aren't levied on the entire state, according to St. Joseph County Commissioner Mark Dobson (R).

St. Joseph County's current hotel/motel tax goes to fund tourist based endeavors, including South Bend's Century Center, the College Football Hall of Fame, and other tourism outreach programs and marketing.

Some of Marion County's funding is funneled into the county's "general fund," said Dobson.

"I think there's some issues with having home rule, or local control, on that type of tax, and I think the General Assembly is the biggest roadblock to that. We'll keep pushing it, and hope it's brought up in January," Dobson said.