11/1/2005
Media Contact:
Steve Campbell, [317] 327-3622 |
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City officials: ‘System that creates State-mandated property tax increase dysfunctional’
INDIANAPOLIS - City officials today said a system that could mandate property tax increases for Marion County homeowners and businesses to pay for state-sanctioned services is severely dysfunctional.
Today, the Indiana Department of Child Services said it would seek a court order to raise property taxes in Marion County to pay for State-sanctioned child services.
Even though local officials have no control over the child services budget, outside contracts, employee salaries and services provided, the State makes Marion County officials raise the money - mostly through property taxes - to pay for its expenses.
This year, the State office overspent its budget and requested a $15.6 million loan for the rest of 2005. For 2006, the State asked for a 50 percent increase over its approved budget last year, and nearly triple what it was 10 years ago.
Under a new state law, the State can order Marion County to pay the State by making budget cuts or borrowing money. This is in place of the State raising the money at the state level.
Cutting the budget would result in cuts to public safety agencies, such as the Sheriff’s Department, the Prosecutor’s office, and the County Courts. Requiring Marion County to borrow money would cause a property tax increase.
"These State services are very important, but counties across the State are the ones who have to raise taxes, not the folks who are asking for the money," said City Controller Robert Clifford. "The State either should raise the money itself or watch their budgets more closely."
The mandate would come at the same time the city has tightened its belt and cut services in 2005 and 2006 by $28 million and cut 189 positions through attrition. Both increases would wipe out those cuts.
"In Marion County, we left no stone unturned and squeezed every possible efficiency out of the taxpayers’ money," Clifford said. "That’s what happens when the people spending the money also are accountable for it."
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