Am I The Only Person Who Sees This?
It’s no big secret that I’m a big fan of government consolidation and property tax caps. I think if done properly there is more efficiency, accountability and eventually savings. It’s good for political parties because there are now fewer offices to fight for and they can make better use of their resources.
I am not surprised that some members of the General Assembly and local government officials aren’t totally on board with consolidation and tax caps. A lot of lawmakers got their start in local government and most of the folks at the grass roots level have local government ties. But anyone who is in local government or at the Statehouse should pay attention to this because I think there’s a big set up right down the road.
On the one hand, lawmakers seem to be back tracking on the state implementing Kernan-Shepard government consolidation reforms to streamline local government, and instead turning those decisions over to the locals to decide if they want to reform. While I think that’s the state abdicating it’s responsibility to maintain a uniform local governing structure, it is consistent with those who believe such decisions should be made at the local level. However, people seem to be forgetting one thing, property tax caps.
Although the most recent analysis of the current tax caps shows its impact was not as draconian as some local governments originally thought, we all know what’s coming in 2010. And here’s some more food for thought, if lawmakers do nothing, a one-percent property tax cap on all Indiana property is a more realistic prospect than you might think.
Let’s say lawmakers don’t pass the current tax cap structure into the Constitution. The caps are challenged and thrown out because they are not “uniform” as required by the Constitution and are thrown out. What happens next? Lawmakers will have to come back with a more “uniform” system, which I could argue means all property would have to be capped at the same rate. Now which do you think lawmakers will shoot for? The one percent rate for residential property or the three percent for commercial? Anyone who said three can forget about ever getting re-elected!
Now let’s put the two together. Property tax caps are here to stay in one form or another and the full effect will be here by 2010 and there is a chance that one-percent across the board could become the law of the land. Second, we have local governments, who if some members of the General Assembly get their way will have to decide if they want to consolidate and cut services. So if you’re an Indiana lawmaker, why wouldn’t you want the locals to make the tough choices and that way you can wash your hands of the whole thing and let them take the fall?
It’s almost deliciously Machiavellian, which is maybe why it took me all of five seconds to recognize what was happening.
