Read Mitch’s Lips, “No New Property Tax Replacement Credits!”
The Daniels Administration is sending local governments a message with this year’s budget. The state is no longer going to solve your financial problems, but it will help you get the tools to do it yourself.
Daniels budget Director Chuck Schalliol today announced there is no new money in the Governor’s budget for property tax relief for local governments. The nearly $25 billion spending plan includes slightly more than $2 billion for property tax replacement credits. That is money that goes to the locals to avoid property tax increases for services.
Schalliol says the problem with local governments has been spending. He says spending has grown at 6.1 percent while income has risen 5.1 percent annually. He adds local issues should be addressed by local governments where there is local accountability. He did not come out and directly endorse plans like Hometown Matters or a proposal by Senator Luke Kenley (R-Noblesville) to give local governments more authority to raise revenue, but he said they are on the right track.
Schalliol says the state would pick up part of child welfare expenses in 2009.
The Budget Director says local problems should be addressed, but not through increased State taxing and spending. He adds that prior state efforts to provide property tax relief have failed.
Schalliol’s comments came as he unveiled the state’s spending blueprint to lawmakers. The budget has new money schools and provides for the first year of full-day kindergarten. It also finishes off payment to schools and local governments. Overall state spending increases have been kept under four percent.
Money from privatizing the lottery and increasing the cigarette tax were not included in the budget as the revenue would go toward dedicated programs.
