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I Told You So…

Indianapolis Mayor Greg Ballard gave a first look today at the 2009 budget and the challenges the city is going to face and it’s not pretty.

The city will have to borrow about $150 million to make through the rest of the fiscal year. That amount is a result of delayed payments due to the property tax reassessment as well as $33 million in under-budgeting due to the previous people running the show.

Also, city revenues are not keeping up with expenditures and by 2012 the city will be in the financial hole by nearly $170 million.

The biggest expenditures are public safety and public works which make up 55-percent of the city budget and property taxes and local income taxes are the largest revenue stream, making up 53-percent of the city’s intake.

Ballard says to get the city’s finances under control it will require tight spending controls and local government reform, while at the same time the city keeping its commitments to public safety, road infrastructure and economic development.

The rubber is now hitting the road and Ballard is facing his first true test as Mayor. Unfortunately for him, there is no room for error.

  • Really

    Houston there is a problem. I am missing something. The State of Indiana picked up the public safety pension, welfare case expenses and juvenile commitments to DOC. This total would be tens of millions. I will WAG (wild ass guess) it at $20-$25 million a year in savings that shifted to the state and saving the county/city money. Additionally, the last mayor/council increased substantially, the COIT (county option income tax) and sales tax and Gov. Daniels increased my property taxes. I will WAG this price tag to be no less than $30 million a year. How in the HELL is there a shortfall of any kind? Yes Abbie, Ballard has some explaining to do.

  • Anonymous Nobody

    The “savings” from taking the 1977 Pensions is countered by reduced property taxes when the caps kick in. Since the 2007 taxes being paid this year are being delayed yet again… it’s creating a cash flow problem.

    “Gov. Daniels increased my property taxes.”

    He did? Try again. How about the 20-30 units of government that all have their fingers in your tax bill.

  • bit

    I would really LOVE to see someone in the media dig up the Indpls Star articles from Bart Peterson’s first budget… exact same freaking thing. YOu’d see the same comments. Those of us paying attention 8 years ago will remember the same “discoveries” of the horrors left behind by Goldsmith of taking spending off budget and leaving the city with a world of hurt from unfunded obligations. Same crap people. Goldsmith did it, Peterson did it, Ballard will do it too… smoke and mirrors to try to make it all add up without a tax increase, failure to be honest with people about needs and expenses vs. cuts (think back to Goldsmiths’s refusal to deal with the reality of the federal governments requirments to for our sewers wwhen sued for the amount of raw sewage we were dumping into the White River… yeah Goldsmith ignored that mounting liability…but we got Circle Center Mall and the Monon Trail built…) Same sh*t, different day(year)… They all refuse to deal with reality by deflecting blame on their predecessor.

    Hey Ballard- we’ve seen this before from Peterson and it doesn’t matter one fig whose “fault” it is. That’s political BS plain and simple and not what people elected you for… Deal With The Reality! It is what it is- START CUTTING EXPENSES like you said you were going to do. No one wants to hear you, or your apoligists, whine about how it was Bart’s fault because the old Goldsmithies remember how the Bartys did this to them. It’s not original. Be freaking honest. Government — especially the government people really want like enough police and a judicial “system” that would actually keep criminals off the street– is Ex. Pen. Sive. Tell us we can pay for it or live without it when you cut expenses. And find some to cut. BUT don’t tell us you’ll just borrow money that we’ll then be paying interest on to get by until you can figure out a way to pay for it- which you won’t.

  • Guess Who

    Bit:
    Remember the five black pages in the new budget Peterson sent to the democrat controllled city-county council and it passed.

    Did you question it? I am sure Mayor Ballard will not be submitting a city budget with blank pages to be filled in after it passes.

  • bit

    See Guess Who…. you make my point exactly. So what. So what what Peterson did? What does that have to do with cutting our expenses now and/or borrowing money. Deal with what you got and be up front and don’t play politics. THe point is this is exactly what Peterson said when he took office. “Woe is our city.” “Goldsmith hid all these problems.” “Goldsmith was not open and had secretive finances.” Blah blah blah. Who cares what Peterson did. Why are we borrowing money instead of cutting spending?? Or at least TALKING about cutting spending?

  • Taxpayer 834512

    You’re on it. Quit spending so much money. We have no choice.

  • IndyErnie

    Peterson spent more money then a horny frat boy in a whorehouse.

    Give Ballard a chance. Adult supervision can improve the situation tremendously.

    Mitch didn’t raise our property taxes. If you would read more than the daily comics you would be better informed.

  • Guess Who

    Bit:

    You really don’t know what Peterson did with taxpayer money when blank pages were left in the budget. How much did he really waste since he and the rest of the democrats couldn’t count large numbers? Reason for the blank pages.

  • Moneyguy

    Peterson kept writing blank checks. He got lots of help from the ex head of council Servas another spend thrift. Hmm who makes the money when bonds are issued. I would start there. Always remember follow the money trail. You also want facts and figures, opinion is best left for the sports (Bob Kravist comes to mind) columnist!

  • Moneyguy

    Ok now is the time for Gov. Mitch Daniels to step up and bail out the city on the stadium. Remember he wasn’t shy at all about handing out all the contracts (he did throw some bones to Bart) for the Colt’s new home. Come on Irsay what are ya going to do with all that cash!

  • Robert-NW Side

    I wonder how much could be saved on ‘welfare’, in all of its guises, if we RETURNED to the ‘county farm’ concept of poor relief for those who “have claims upon the sympathies and aid of society”?
    -
    This model would be less expensive to administer than the existing model.
    -
    I believe that the IndyStar once reported that for every $4 going into ‘poor relief’, only $1 actually makes it to the recipient.
    -
    Put ‘em on the Farm, growing corn for ethanol!

  • mike

    freeze metro development because so far, it isnt

  • http://www.hoosiers.for.fair.taxation.com Melyssa

    His first true test was to thoroughly examine every speck of the city budget and then tell us the truth of what is going on. I, for one, truly appreciate it. Thanks Mayor Ballard. Now lets cut out things we don’t need.

  • http://www.hoosiers.for.fair.taxation.com Melyssa

    Really…you just summed up why Peterson was so freaked out about getting that COIT increase. It was because he knew his lying and spending was getting us in deep doo doo. Ballard is just working with what he got. Imagine how bad off we would be had Peterson stayed in office, we had no idea what the real numbers of the city were, and he kept spending and borrowing like there was no tomorrow.
    .
    I feel much better with Ballard, even if he isn’t a slick politician.

  • IRoc

    Yeah but Ballards hangin with slick politicians and crooked clergy; you are what you eat!!!!!

  • Think Again

    I’m kinda tired of the Peterson bashing. It’s so 2007. And about 25% accurate. But the blank budget pages did kinda honk me off last year. So unnecessary.

    I will give Ballard his due. His stamp will be on this budget. Let’s step back and see how it works out.

  • Kevin Oldman

    Not that I’m looking for “Naive Taxpayer of the Week” nominations or anything, but can the Treasurer’s office manage a program of pre-paying 2008 taxes? I do not escrow taxes, and I have my May allotment sitting in a savings account, waiting for a bill – every little bit helps! Didn’t Hendricks County do that a few months ago?

  • Joe

    Video Message from Joe Kernan on Local Government Reform
    http://www.indianachamber.com/localgov/

    Audio Clip from Randall Shepard on Local Government Reform
    http://www.insideindianabusiness.com/newsitem.asp?id=26841

    Kernan-Shepard Recommendation would save between $200 and $400 million EACH year.
    http://www.insideindianabusiness.com/newsitem.asp?id=27617

    Complete Report from the Indiana Commission on Local Government Reform
    http://www.indianalocalgovreform.iu.edu/

  • Really

    Abbie. Stop the press. I just got wind that the 2009 budget and all future budget will be secured by Ballard. He found more revenue.

    Ballard Budget Balanced By Boondoggle
    By Harold Hill
    WRTV-6
    August 1, 2008

    Unconfirmed sources have stated that Mayor Ballard will be leasing Merdian St starting at Washington St and ending at the County Line. It is being leased for $2.15 billion to a Japanese transportation company until 2107. The company, to be named, will be managing and maintaining the road and speculation is they will be designing a lite rail system in order to generate revenue. The rail, which has been a topic in Indianapolis for some time, is expected to up and running witin 4 years. According to sources close to Ballard, he had been playing with the idea of selling public owned projects in order to balance the budget since 2006 when Indiana Gov. Mitch Daniels sold the toll road to a overseas firm which in turn balanced the state budget. Sources close to the Mayor also indicated that all Indianapolis landmarks and goverment owned property are on the table to the highest bidder. Ballard still needs to get council approval.

    Copyright 2008 by TheAbdulChannel.com All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

  • Marcellus Washburn

    That’s gonna be great for Greenwood and Southport.

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