5/15/2006
Media Contact:
Justin Ohlemiller, [317] 327-3690
Cherrish Pryor, [317] 327-4245 |
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Mayor, Council President call on state to fix dysfunctional process that mandates property tax hikes for state-run child services
Council to consider measures tonight to pay for state budget
which ballooned by $32 million for 2006
INDIANAPOLIS - Mayor Bart Peterson and City-County Council President Monroe Gray tonight called on the Indiana state legislature to reform the State of Indiana's child services program, which is requiring the council to pick up the tab for an additional $32 million in expenditures above its 2006 budget.
Even though local officials have no administrative or budgetary control over the program, including child services, outside contracts, salaries and services provided, the State makes Indianapolis officials raise the money - mostly through property taxes - to pay for its expenses.
"The state legislature continues to allow the state-run Family & Children's office to pass the buck to the local taxpayers," President Gray said. "The Family and Children's budget is financed by shifting the funding responsibility from the state to local taxpayer, which causes property taxes to soar."
In 2005, the state Family and Children Services office overspent its budget and the state mandated Marion County to pay an extra $15.6 million. This year, it is asking for an additional $32 million more above its approved budget for 2006. Tonight, the council will vote on funding measures to pay the extra $32 million.
"Once again, our taxpayers find themselves victims of a dysfunctional, state-run system," the Mayor said. "These programs provide critical services to children and families, but the state legislature needs to take responsibility for its own programs and stop passing its spending down to local taxpayers."
Peterson pointed out that legislation was introduced before the Indiana General Assembly earlier this year, supported by the counties across the state, Gov. Mitch Daniels and other legislators, which would have addressed the issue.
Instead, the majority caucuses in both the House and the Senate failed to act on any measure that would help local government solve its own fiscal issues. Instead, they:
•Passed several measures, including House Enrolled Act 1001, which cause further damage to local government finances and hinder cities from taking care of their own fiscal issues;
•Killed Hometown Matters, the bipartisan plan supported by mayors and local officials across Indiana, to reduce reliance on property taxes, create alternatives for financing local government, and create efficient and effective local government; and
•Stalled Indianapolis Works, which would have saved taxpayers tens of millions of dollars a year.
Nonetheless, Peterson and Gray said they would support new funding measures to pay for the State's new $32 million bill to make sure that services to families and children in need are not interrupted.
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