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Let Them Eat Caps!!!

Next Tuesday Hoosiers will go to the ballot and vote on a number of state, federal and local races.  They will also vote on putting property tax caps into the State Constitution.  The formula is pretty simple; the amendment would cap residential, rental and commercial property taxes to one, two and three-percent of the property’s assessed value, respectively.

Now local governments have complained the caps are going to put major restraints on their ability to raise revenue.  The caps will also result in police layoffs and fire stations being closed.   Schools have said the tax caps will cause teacher firings.   Libraries will close.  Cats and dogs will start dancing with each other, etc. etc.  Please spare me the apocalyptic rhetoric.

For one thing, my friends in local government need to be reminded that it is not their money; it is the taxpayers’ money.    Secondly, I would have a lot more sympathy for local governments if many of them had done their parts.   You have to remember, when the property tax crisis exploded back in 2007 and lawmakers were scared into addressing the issue in 2008,  the Governor offered up two plans; one for tax caps and Kernan-Shepard local government reform.   Since no one wanted to put their friends out of a job; lawmakers chose tax caps.  Little did they know.  By choosing caps over consolidation, the government has literally slit its own throat and I am contempt to let it bleed to death.

Don’t come to me crying about tax caps, when school districts can’t even come together to do joint purchases on little things like paper, which would save the taxpayers’ money.   Don’t come to me crying about caps, when Indiana has more local government, per capita, than the state of California.   And please don’t come crying to me about property tax caps when you decide you want to build a new building as opposed to lease existing space.

Like I said, it would be one thing had the locals pursued policies of consolidation and collaboration and truly demonstrated they were operating with taxpayers’ best interests at heart.  But when your first instinct is to fire teachers or layoff police and fire, pardon me if I remain just a little cynical.  Now I do think that in a world of caps, locals will need more tools to pay for basic services.  I have no problem with removing some of the barriers that would allow locals to transfer funds to pay for programs.  And I also think local city-county councils should have more authority to raise or lower income/sales taxes in their jurisdictions.

But at the end of the day, property tax caps about protecting the taxpayer, plain and simple.  I don’t favor their elimination, because I do believe the land should help pay for benefits it receives.  However, the person who has lived in his or her home for decades should not have to fear losing that home, because the local governments have decided to let their spending get out of control.

  • Pascal

    I always think about the Marion, IN school district that had health care costs of $30,000 per year per employee or fire departments that generally employ two to three times the numbers that are actually needed. And schools? Schools really know how to burn money and even the dimmest of the dim cannot be happy with the paucity of result Indiana gets for that 70% of its budget-note the WSJ article of 10/23 extending that criticism to so-called higher education. We do a lot of testing in K-12 to prove that we do a terrible job but no one tests Indiana colleges to see the same result.

  • GP38_2

    Come on, Abdul. You know that if schools start getting pinched, you know that one of two things will happen: The local district will pitch a referendum; and the County Assessor will revisit the assessments. But yes- removing barriers would be excellent. That means, get the state out of the way, and let the money stay local, leaving local officials, often elected officials like school board members, to make decisions. One size does not fit all.

    When govt’s first instinct is to fire teachers or firefighters, it’s a tactic designed to scare the populace into demanding the tax hikes administrators and elected officials want. We call this the Washington Monument Syndrome. It’s not you who’s cynical, it’s those elected officials.

  • Aaron Smith

    The Watchdog Indiana top twenty reasons to support the Constitutional Amendment in Public Question #1 can be found at http://www.finplaneducation.net/caps_top_twenty.htm

  • Think Again

    Pascal, you think too much.

    I’ve seen government up-close-and-personal. It needs a thorough house-cleaning. Now.

    But the tax cap isn’t the way to do it. Our Constitution shouldn’t be amended for reasons that can and should be handled by the legislature. That makes me a strict constructionist, I guess. Judge Isiah Blackford and Oliver Morton and others, our forefathers, envisioned a healthier legislative climate. Altho their transport canal bankrupted the state, they and their brethren had some other good ideas.

    If we’re amending for this, the easiest function of state government (income), why aren’t we questioning the real culprit–the Gang of 150? Recall that they had six years to fix the property tax nonsense, after Tax Court Judge Fisher made his ruling. They waited until the 23rd hour of the 364th day of Year Six. Each party controlled the House during that timeframe. Let’s face it” they’re too comfortable to make tough decisions.

    Indiana probably has one of the safest legislatures in the nation. We let clowns hang around too long.

    If we’re going to amend Constitutions, why not start with term limits? I used to hate them. But I’ll take them as the lesser of evils, and as an ugly but necessary tool to breathe fresh blood into our legislature.

    The governor is term-limited. It’s only fair to do the same with the House and Senate. Bauer and Espich have been there too long. They ARE the problem. I’d point out that Rep. Espich has been the GOP budget/tax guru since he began in 1974. Six governors have passed through the Statehouse in his tenure. Seven or eight during Bauer’s.

    That’s just ridiculous.

  • Indianabc

    Question about the caps. For those of us in rural areas that do not pay anywhere close to 1%, does this means our taxes will go up? I looked at the wording and it says “limit”.

  • Dave

    The citizen’s voice, has been excluded from this “debate” within the GA chorus. One local “result,” pre-floundering of the national economy, has been devaluation. More than a few of the seven thousand or so homes scheduled for demolition within Marion County, have valuation issues related to consfiscatory overcharges known as “property taxes.” Many properties which have been abandoned on the basis of avaricious overcharges excused as “taxes,” are in fact votes of non-confidence in those policies of greed; hardly investment grade policy making.

    Disney World is great, but citizens shouldn’t be forced by tax, to adopt illusions of grandeur from misguided public servants; confused about the actual purpose of government. Public servants should work out the “little brother syndrome” on a therapist’s couch & not the peoples’ pocketbook which doesn’t belong to them.

    There’s no coherent proposal (referndumb) on the table, to solve the property tax issue, discussion about which has been severely limited to govern-mental perspective, state vs. local; citizen dialects lost to bureau-speak.

    There’s nothing citizen centered about the drafting process for referenda, a 1-2-3 commission schedule factored by a variable (government determined assessment), misuse of words like “revenue” where the word tax applies, etc.

    One-two-three, top-twenty reasons… really? The game show is alive & well.

  • Dave

    The citizen’s voice, has been excluded from this “debate” within the GA chorus. One local “result,” pre-floundering of the national economy, has been devaluation. More than a few of the seven thousand or so homes scheduled for demolition within Marion County, have valuation issues related to consfiscatory overcharges known as “property taxes.” Many properties which have been abandoned on the basis of avaricious overcharges excused as “taxes,” are in fact votes of non-confidence in those policies of greed; hardly investment grade policy making.

    Disney World is great, but citizens shouldn’t be forced by tax, to adopt illusions of grandeur from misguided public servants; confused about the actual purpose of government. Public servants should work out the “little brother syndrome” on a therapist’s couch & not the peoples’ pocketbook which doesn’t belong to them.

    There’s no coherent proposal (referndumb) on the table, to solve the property tax issue, discussion about which has been severely limited to govern-mental perspective, state vs. local; citizen dialects lost to bureau-speak.

    There’s nothing citizen centered about the drafting process for referenda, a 1-2-3 commission schedule factored by a variable (government determined assessment), misuse of words like “revenue” where the word tax applies, etc.

    One-two-three, top-twenty reasons… really? The game show is alive & well.

  • M Theory

    My bet is yes, your taxes will increase sooner than later.

  • Tim Dugan

    Pascal, The next time your house is on fire of you have a medical emergency. Don’t call the fire department. Call a politician.

  • Jack

    A major concern ==Indiana a “home rule” state where the state government continues to impose more and more rules on local government. The tax caps are a prime example. And to the point of assessments increasing to make up for lost revenue—again, the state absolutely controls the formula for assessments in every taxing unit in the state, that is, the state sets the standards for assessment, sets the formulas, checks the figures, etc. with cost being very high as to verifying all assessments—so, no the assessments can not simply be raised locally to avoid the impact of the 1-2-3 figures.
    Yes, some units of local government have not operated efficiently and yes, the state has continued to mandate more and more things the local must do without providing for any funding mechanism except the allowing for limited ability to impose local income taxes–which also must be approved by the state.

  • Think Again

    And, you’ve likely been paying too little, vis-a-vis local/state share of school budgets, for decades.

    Most rural schools have been paying too little.

  • Think Again

    Jack: there aren’t five local units of govt. in this state that operate efficiently.

    Make that three.

  • Jack

    TA: highly respect your comments on many issues and expect you are right on this issue to some degree—but will put many local units up against the state and many businesses as to getting return on investment. The all inclusive statement of only three units in the whole state is quite a statement. This is very large topic and no near enough time or space to go into, but having a great deal of experience in local government both as an official, participant (boards, commissions, etc.), etc. and observer do know that many of the people involved as administrators are very concerned about how things are operating. It is not the commonly held attitude that everything is operating on the “good old boy” way or trying to fleece the flock mentality. Where else do you see many volunteer fireman, police reserves, variety of commissions, etc. serving without any compensation or expecting to “get some” in return. Also, locally the average pay for courthouse workers is less than $30,000 per year and the elected officials (those not mandated by state pay provisions) making less than $40,000—-so reality you get what you pay for as to experience and training. Sure there is reluctance to give over to the state any more local control.

  • Jhays

    Indygo and the libraries have already petitioned the DLGF to tax over the caps, through the Distressed Units board. Don’t forget referenda amounts. All 1-2-3 does, is give you SSDD, with more blind alleys. It is 1973, all over again. Let’s just keep urinating property tax monies on the CIB (Corrupt, Inept & Brainless), too.

  • Jhays
  • Dave

    Your assessment doesn’t work or account for owners, whose opinions on value, aka “assessments,” were lowered a year ago only to be raised the following year, back to 2007 revolt levels. Get out there & you’ll discover it’s true.

    In the new Halloween thriller, “Villages of the Referendamned,” citizens are horrified to discover the caps are mere buoys on a tax schemed slalom course; designed not by citizens, but consumers of tax.

    Beyond that, & considering folks who’ve had the DLGF, expressly & contradictorily state, they had “no authority” to regulate taxing units (i.e. “conservancy districts,” etc.); your assessment is on the money- not.

  • Pascal

    One fire, one fireman? I guess you are unfamiliar with the poster child of laid off firemen being a great harm to the citizens? Muncie whacked their numbers in half with NO DIFFERENCE in much of anything but cost. They could probably reduce much further with NO DIFFERENCE. What they have done is prove BLOAT. The rest of Indiana ought to wake up and study carefully the Muncie lesson. Taxpayers, in particular, should know that fire departments are overstaffed, under worked, and overpaid.
    Isn’t that your experience, Tim?

  • Tim Dugan

    Pascal,
    Ask Morgan County Indiana about not having a fire department any longer. A person dies last week and EMS care was no where to be found. I do understand your issue over staffing, but NFPA requires a minimum amount of firefighters before an interior attack can be initiated. It all has to do with insurance regulations, lawyers and politicians. All civilians are welcome to sign a waiver and ride along on a shift with the firefighters to see what they encounter. If any of you would like to “ride out for a few house let me know. flipper

  • pascal

    If things were left to NFPA instead of to market place realities and needs everyone would be a fireman and insurance companies would NEVER have to pay out for risks that would not exist.
    I have no idea of Morgan County or even where it is while the Muncie situation has been in the news all over the State as the poster child for overstaffing and mindless expenses. They have pissed on NFPA and all sorts of other fig leaf organizations that stand for screwing taxpayers. I think Muncie got some sort of stimulus package so that the Feds are now eating the needless expense but that runs out at the end of two years and reality will reintroduce itself.
    I have already had enough of fighting fires…everyone in the Navy takes those courses with regularity.

  • pascal

    One who thinks much and well has little reason to think again.

  • Think Again

    Don’t get me started on 1973. Gov. Bowen’s “tax relief plan” was anything BUT. It caved to rural counties and the Farm Bureau.

    They hiked the sales tax, and put half of the increase into the “Property Tax Replacement Fund,” to “lower” your prop. taxes.
    They even demanded that every county Treasurer send property tax bills, that demonstrated the amount “saved” by the PTRF. Moxie to the max. They had the nerve to demand that county treasurers pat the legislature on the back, for your “decrease” in property taxes.

    Isn’t it just like a Republican physician, to raise one tax, to offer us a tax decrease elsewhere?

    That sugar tit never went away. The structure is still there. It was a Ponzi scheme then, and it still is.

    We’ve been running from real answers to these questions for almost 40 years.

  • Think Again

    I’ve been elected too. It isn’t what it’s propped up to be.

    Every single unit of government in this state wastes money. We have townships because the legislature lacks the courage to buck a few folks who want to keep them. My home county has 25,000 or so residents, and six township trustees. And boards.

    Schools waste as Superintendents direct.

    Cities pad budgets to allow for pet projects. And while I respect public servants who work hard…walk over to the State Office Building complex some day–you pick the day–and walk from floor to floor. You’d be amazed art the inertia. It’s frightening.

    Those who serve with no compensation have my admiration. But most of those boards and commissikons could get flushed, too, and few would notice.

    We need a meat cleaver taken to the governmental structure in this state. Streamlining is one word. It’s a kind word. But for now I’ll go with that. We’re in love with government. We’ve got layers and layers of it. And even with no-compensation boards, there is tremendous cost. Too often, very complicated and important decisions are left to low-no compensation boards, and we get effed up all the time. Case in point” Boards of Zoning Appeals, right here in Marion County. I think they get $50 a day, which is peanuts. They’re only supposed ot approve variances where a statutory burden of hardship is approved. Yet variances get approved for some of the stupidest reasons, and the fallout is immense. Each dumb decision sets a precedent.

    I’ve had it with Indiana govt. We have too much of it everywhere. It ends up being expensive, if only in efficiencies. Or, in my example above, in the case of precedents which kill smart development.

  • Think Again

    NOW I get it–finally. You were in the Navy?

  • John Howard

    The great part about that is the voters can kill any of those extra tax dollars requested by referendum. Yes, the taxpayer gets control over their taxes. While the Wishard debacle sailed through on a highly misrepresented wording, I am willing to bet in the future people will not be so easily shmoozed and cajoled into going along with such shenanigans. And we will thus hold the line on our tax increases rather than have them shoved down our throats time after time with no recourse.

  • Rico

    Once again, it amazes me how your outrage at ‘big government’ stops at the Indiana state line.

  • Anonymous

    “The General Assembly shall provide, by law, for a uniform and equal rate of property assessment and taxation…” Article 10How long have our elected reprobates been violating our organic law? The Constitutional Question posed would also have the effect of legitimizing their unconstitutional acts — just as they did with their 2004 Amendment to Article 10.BUT, since most governmental units appear to be against the caps, that is reason enough for me to lean towards supporting them.Otherwise, I’m all for repealing our current government, and beginning anew:”WE DECLARE, That all people are created equal; that they are endowed by their CREATOR with certain inalienable rights; that among these are life, liberty, and the pursuit of happiness; that all power is inherent in the people; and that all free governments are, and of right ought to be, founded on their authority, and instituted for their peace, safety, and well-being. For the advancement of these ends, the people have, at all times, an indefeasible right to alter and reform their government.” Article 1 (Bill of RIGHTS), Indiana Constitution

  • Arc7

    Abdul- I think you stated it well. Trying to put hard limits on one of the tax revenue inputs might begin forcing investigation into bureaucracies and consolidation. Lord knows, it’s kicking and screaming all the way, but we can always hope.

    Imagine, just imagine how much they could (emphasis on “could”), unearth in the bureaucracy of the federal goverment if they were forced to by hard revenue and spending limits.

  • Pingback: Constitutional Property Tax Enshrinement

  • Jack

    TA and others: repectively disagree with much of the rationale put forth here concerning local government as if one shoe or a few selected examples covered the entire world. Now if you want to allow for changes in county government then seek to get the enabling action passed by the legislature (I said enabling –not forceful as still would contend that is a local decision not necessary to be coming from the collective wisdom of the governor and legislature). nough said.

  • GP38_2

    Otoh, suburban districts are donors.

  • GP38_2

    Otoh, suburban districts are donors.

  • KvDLGF

    Correct about DLGF failure to regulate conservancy districts. Know how many are not being properly regulated? Any idea on how to stop the illegal conservancy taxation? Has anyone found the “authority” in charge of regulating conservancy taxes? IBTR also disclaims any authority.

  • KvDLGF

    Correct about DLGF failure to regulate conservancy districts. Know how many are not being properly regulated? Any idea on how to stop the illegal conservancy taxation? Has anyone found the “authority” in charge of regulating conservancy taxes? IBTR also disclaims any authority.

  • Melyssa

    Do the rural schools get better results on less?

  • Guy77money

    Here lies some problems with the property tax caps. I believe it is a truly bad way to fund education. Lets say you have 2 kids taking two different buses to school and you live in a house that cost $100 thousand dollars. Your property tax is only $1000.00 a year. Lets say it cost $3.00 a day to (I suspect a very low figure) a kid to bus each kid. It would only take 180 days for your kids to exceed your property tax (hey not all of that goes to the schools) amount and you get the rest of your kids education for free! Here lies the problem. Throw in districts where there is very little business and industry to subsidize education and it a receipe for disaster. Almost all suburban school districts were built so kids cannot walk to school. Center Grove, Franklin Township High School, Franklin High School are just three I can think of off of my head. Busing is eating up a large part of these districts costs. Yes, yes I know these idoit school boards spent way to much money on athletics (but the last time I looked I am paying a extra 2 cents tax for pro sports in Marion county) and buildings. I suspect you will see more condolidation among the districts in indiana and cost cutting.But is the state ready to take over schools districts that go bankrupt? I seriously think we are headed that way and it will not be pretty.

  • Think Again

    Some, yes,

    Many, no.

  • Think Again

    Too many local govt. units would vote to preserve their precious domains. With every domain there’s a brother-in-law running the street department, or a friend getting the legal business…too much of it duplicitous

    They just don’t get it.

    It won’t change anytime soon, Jack, so it doesn’t really matter. The last massive round of school consolidations took place in the late 1960s. With few exceptions, the results improved education and allowed efficiencies. But the political fallout was enormous.

  • Think Again

    Oh, no, it doesn’t. You just don’t pay attention.

    The USDOE spends twice what it should. The Pentagon—a playground for the goofy toilet seats. The Navy, Marines, Army all fly. When we’ve got an Air Force. How’s that for duplicated waste?

  • Indianadobie

    I agree that property taxes are a very bad way to fund schools – or anything else. While I know it will not happen any time soon – I hope that eventually we will abolish property taxes entirely. It is the only type of taxation that I am aware of is not related in anyway to your ability to pay it. Income taxes are based upon what you earn. Sales and excise taxes are based upon what you spend. But property taxes can go up just because your house has increased in value.

  • Rico

    Why does it not surprise me that the only federal government spending you attack is defense spending?

  • Rico

    Why does it not surprise me that the only federal government spending you attack is defense spending?

  • Rico

    Somebody explain to me the fiscal responsibility of sending no fewer than six full size, fully-staffed firetrucks, at least three ambulances and a half dozen police cars to an accident scene where an elderly man drove into a building on Southport Road monday afternoon. There were a few minor injuries, and minimal damage to the structure. Money well spent?

  • pascal

    Based on what were the schools improved? Declining SAT scores and declines in every other measurable item including declines in ISTEP since its inception? What a nut case.
    http://www.aolnews.com/opinion/article/opinion-christine-odonnell-is-right-about-1st-amendment/19692180 Here is another hat rack for you to hang your hat on,from an Indiana author too, telling you, TA, that being FOS, is what you are. A pretender to knowledge, a bluffer with blank hole cards, a credentialed fool, nonsense on stilts.
    Posting here to save you embarrassment.

  • Dave

    If, the idea of a constitution is not the promotion of “uniform & equal,” as relates to taxation (or other matters); what is the purpose of a Constitution?

    “Uniform & equal” would apply to a standard of fairness, a good thing, right? Why then, would the GA propose to remove those words from the state’s constitution, in the proposed amendment for “tax caps?” Is this referendum drafted in the voice of the people, or…?

    If we just go along with the GA “one more time,” they’ll “cap” our taxes, “protect us,” right? And, there won’t be any new, additional taxes (sales, income, regional schemes, referend-added, etc.), right?