Indiana General Assembly - Senate Bill 309 - Property Tax increase

Below is a copy of my view on Indiana SB 309 (IN. General Assembly).

INDIANA CITIZENS MUST STOP THIS BILL - CALL YOUR STATE SENATOR NOW.

The current law in Indiana system allows school corporations to move up to 3.5% of capital
projects fund money to cover utility and insurance expense, based on numbers
from 2005, by exploiting a loophole.

THIS BILL HAS NOW BEEN UPGRADED TO AN EMERGENCY BILL - AS THE SENATE IS TRYING TO PASS IT BEFORE TOO MANY TAXPAYERS ARE AWARE OF IT...BECAUSE IF PASSED, THIS BILL WILL INCREASE PROPERTY TAX ON INDIANA PROPERTY OWNERS AN ESTIMATED $116.5 MILLION - AND THAT'S AN ESTIMATE. IT WILL ALMOST CERTAINLY TRIGGER CIRCUIT BREAKER - WHICH MEANS ALL TAXING UNITS (GOVERNMENT LANGUAGE MEANING ALL THOSE WHO TAX YOU) - MEANING THAT ALL LEVELS OF GOVERNMENT WOULD THEN TRY TO PLACE FURTHER TAXES AND FEES ON INDIANA TAXPAYERS USING THIS AS AN EXCUSE.

I contacted State Senator Randy Head (Indiana Senate District 18) with the following email:
------------------------------------------------------------------------------------------------------------------

Directly from the fiscal impact statement:

"School corporations would be permitted to increase the tax rate for the CPF
to generate the additional $116.5 M for CY 2010 and CY 2011. If school
corporations increase their CPF rates, the higher tax rates would increase
net property tax liabilities and could possibly increase circuit breaker
credits if they have been triggered. All taxing units would be affected by
the loss of revenue from any increase in circuit breaker credits."

This is why I oppose this bill, and would think it prudent for any fiscally
responsible member to do the same. This is a $116.5 M tax increase, and that
number is estimated. If circuit breaker is triggered, additional revenue
would be required - and we KNOW where that would come from.

It's real simple, and this is where average citizens get irritated, and
rightfully so. Schools and government agencies are like children, and are
not being responsible for their funds. Giving them more is NOT the answer.
This is like giving your child a $5.00 allowance this week, and he spends it
- but wants something that costs $10.00, he's going to come to you for the
$10.00. If you give him the $10, he WILL spend that money and ask for more.

The responsible approach is to TEACH your child that if he wants a $10.00
item, and receives $5.00 per week - he must SAVE for 2 weeks.
It's time to TEACH the school districts, and government agencies the same
lesson we should all have learned as kids...and we are talking about a lot
more than $10.00.

The current system allows school corporations to move up to 3.5% of capital
projects fund money to cover utility and insurance expense, based on numbers
from 2005 by exploiting a loophole. As pointed out by watchdog, and other
fiscal groups, there are ways in which shortages (most specifically
insurance pooling) can be covered, and possibly even SAVE some money based
on the current 3.5%.

The problem is that the districts AREN'T LOOKING for it - why? Because they
are counting on Mom and Dad (in this case, the General Assembly) to give
them more allowance.

So - again, I would ask that you oppose this bill and suggest to the school
coporations that they be wise with their funding. If the GA wants to help
the districts, perhaps a bill or other assistance in obtaining proper
pooling of insurance would be the correct approach?