11/2/2005
Media Contact:
Steve Campbell, [317] 327-3622
Jo Lynn Garing, [317] 327-3690 |
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Mayor to respond to today’s state order to raise Marion County property taxes
INDIANAPOLIS - Mayor Bart Peterson will hold a press conference today to discuss today’s order from the State of Indiana to raise property taxes in Marion County to pay for State-sanctioned programs.
WHEN: Today - Wednesday, November 2; 2:45 p.m.
WHERE: Mayor’s Conference Room, 2522 City-County Building
Even though Marion County officials have no control over the budget, outside contracts and services provided, the State makes them raise the money for child services - mostly through property taxes - to pay for its expenses.
Today, the Indiana Department of Local Government Finance and the Indiana Department of Child Services ordered the Mayor and the City-County Council to pay the State by either:
• Making budget cuts, which would result in cuts to public safety agencies, parks and other city infrastructure projects; or
• Borrowing money, which would require a property tax increase.
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.
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. The state increases would wipe out those cuts.
In addition, the State is charging Marion County for services for juvenile incarceration to the tune of $67 million for past years and $8 million a year in current charges. A new state law passed this year allows the state to withhold property tax relief from Marion County until the debt is passed.
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