ASK AND YE SHALL, MAKE THAT MAY, RECEIVE
The Indiana State Senate Tax Policy Committee unanimously approved property tax reform legislation this morning. However, there was one measure in the bill that caught my attention.
Both Republicans and Democrats unanimously approved picking pre-1977 police and fire pensions. These pensions are the bane of the existence of local governments. In Indianapolis alone the pensions costs the city between $24-$30 million a year. They were also part of the reason for the 65-percent income tax increase that helped defeat former Mayor Bart Peterson.
Current Mayor Greg Ballard told lawmakers it would be helpful if the state picked up the pension tab. Ballard was practically written off during his testimony in the House Ways and Means Committee and also in some portions of the Indiana blogosphere, but apparently someone convinced the Senators that this was a good idea.
Some House Democrats warn however, that due to the economic slowdown the state may not be able to pick up the levy, however these are also some of the same people who spent about $350 million in tax relief when they passed out the Governor’s plan.
Speaking of Governors, Mitch Daniels told me Friday he was open to the state picking up the pre-1977 pension costs if it meant lower property taxes for Hoosiers and it was done in a responsible manner.
I also asked Ballard if the state picked up the pension costs would that mean an automatic reduction in the public safety tax. The Mayor said he could not answer that question until he knew the full effect of the state’s property tax reform.
So while the Mayor may not get the assistance he wants, it looks like it didn’t hurt to ask.
February 19th, 2008 at 5:10 pm
If the state picks up the tab, you’d better believe he should revoke the income tax hike.
If he doesn’t, then all the anti-tax sentiment that he rode to victory is completely hollow.
February 19th, 2008 at 7:51 pm
But which would you prefer: leaving the .65% income tax in place or an increase (relative) in the property taxes? Since Ballard ran on a desire to reduce dependence on property taxes, wouldn’t it make sense to keep the income tax in place and make sure that it offsets property taxes?
February 19th, 2008 at 8:25 pm
He will not last beyond one term if he can’t turn out the high paid slop Bart hired and raised up.
Where are the budget locks and limits in gov growth?
February 19th, 2008 at 11:38 pm
Obviously the politicians (especially Pat Bauer) in the legislature don’t care about government reform and reduction as the Sheppard-Kernan report recommended. Local government’s are going to have their hands tied to a certain extent if the state politicians don’t get their act together and get some real legislation in place to reduce government. That, as common sense dictates, is the only way we are going to see real tax reform. Shifting taxes around from one form to another is only history repeating itself and if the politicos aren’t smart enough to see that, then they gotta go!
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