8/6/2007
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Margie Smith Simmons, 327.3690 |
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2008 budget funds groundbreaking crime package in full, public safety pension fix
Budget lowers property tax levy by $50 million
INDIANAPOLIS – Mayor Bart Peterson tonight presented the proposed 2008 budgets for the City of Indianapolis and Marion County, which lowers the city-county property tax levy by $50 million and holds the line on spending, even while funding one of the most significant crime fighting packages ever.
The budget reduces the property tax levy by $50 million, due to a reduction in borrowing costs for state mandates, other cost-cutting measures, and shifting services away from property taxes.
In addition, the budget increases by less than ½ of 1%, or $3 million, over last year. But the budget now includes the entire $13-14 million Warren Township Fire budget, including savings of $4 million because of efficiencies and cost savings.
That means that overall spending actually decreased from last year budgets.
"The budget I propose tonight is about fixing long-neglected problems in our city and county, taking the war on crime to the criminals on the street, and lowering property taxes for our citizens," said Peterson. "It is lean, fiscally conservative and responsible and holds the line on spending."
This also budget will:
- Hire 100 new police officers – which added to the 200 officers added four years ago and the 137 more patrol officers resulting from the police merger – will bring the number of officers patrolling the streets in 2008 to an all-time high;
- Pay off the pensions of our retired police officers and firefighters in full;
- Fund fixes to the criminal justice system and the county jail – including new jail beds; new judges, prosecutors and public defenders; fixes for the Crime Lab and other steps – which ended early releases due to jail overcrowding one year ago today;
- Add new technology to the Crime Lab to help solve burglaries quicker;
- Directly fund crime prevention and early intervention programs for the first time; and
- Add program to target those who habitually commit misdemeanors.
Significant reduction in city-county property tax levy. This budget continues Peterson's tradition of holding the line on property taxes in city budgets.
- During Peterson's first seven years, the city property tax levy increased an average of less than 1% per year – far below the rate of inflation.
- City departments have cut $83 million out of approved budgets the last four years and Peterson recently announced another $13 million in budget cuts, along with a hiring freeze.
- Those parts of Indianapolis Works that have already been implemented – the police merger and the Washington and Warren Township fire mergers – save more than $19 million per year.
Battle against property taxes. Even though this budget cuts property taxes by $50 million, he still reiterated his call for long-term property tax reform at the state level.
The total tax levy for all local government entities – schools, libraries, townships, the cities of Lawrence, Beech Grove and Southport, the town of Speedway, the city of Indianapolis and Marion County – increased by 10% in 2007. Of that increase, most came from schools, and child welfare services and juvenile incarceration – two state-run programs for which local taxpayers are billed.
"If local government spending was the culprit, why did we see bills that went up by 300%?" Peterson asked. "The property tax debacle was the result of a number of factors including the failure of the township assessors, elected officials, to reassess business property and consequences of several state government policy decisions over the years."
The Mayor called for the state legislature – either in special session or in January – to address issues that could deliver tax relief for Marion County:
- Take over costs of State-run child welfare from 2005 forward. The State requires Marion County to raise property taxes to pay for child welfare services. This budget has increased dramatically in the past few years and now stands at more than $100 million. Savings to taxpayers = $70 million.
- Pass the remainder of Indianapolis Works. Passing the consolidation of the six remaining township fire departments, the nine township tax assessors and nine township trustees would improve service and save taxpayer dollars. Savings = $20 million.
"Many other states have figured out ways to reduce the impact of property taxes and establish a system that is fairer and has more credibility with their citizens," said Peterson. "At the same time, everyone must be forced to work just as hard in the interests of the taxpayers who fund their operations."
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