EDITORIAL: Forced fiscal diet is best cure for Lake County's spending

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| Tuesday, December 11, 2007 | (1 comment(s))

Indiana Gov. Mitch Daniels is adamant about not offering a bailout to Lake County when the property tax circuit breakers are tripped. That is good news for Lake County taxpayers.

While we understand the hardship this might cause in some taxing districts, Daniels is right that the only way to get taxes under control in Lake County is to legislatively force the reduction by cutting the intake of tax revenue.

Government has gotten way too expensive and is harming, rather than improving, the quality of life in Lake County.

Circuit breakers already on the books for 2010 would drain an estimated $279 million a year from cities, schools and other taxing units in Lake County.

Public officials look at that figure and gasp at the amount of money they stand to lose. We gasp at the amount of money that could be kept in the taxpayers' pockets.

Daniels is proposing to shave local spending another $88 million in Lake County.

"Business as usual would have to change in Lake County, but people have said that for a long time," Daniels said Friday. "Even existing law will compel that. What won't work is to continue on with 88 taxing districts doing their own thing, no cooperation, no consolidation, no economies of any kind and ask for a bailout from the rest of Indiana. That ain't happening."

The Maximus report on government efficiency recommended in February that Lake County shed dozens of jobs. The County Council's immediate reaction was to say, in effect, that the council's main job is to protect the employees, not the taxpayers.

We oppose the 1 percent county income tax in Lake County. Will it be another tool to maintain the status quo?

Likewise, the proposed distribution formula is flawed. If it is adopted, it should be challenged in court.

Taxpayers in Lake County should be standing up and cheering Daniels for taking their side in this struggle to do away with politicized government in Lake County that drives taxes ever upward, including East Chicago, Hammond and Gary.

It is still unthinkable that the county seems to be preparing to open a health department office in Hammond after the city closed it to save money. This type of irresponsible action by government is why Daniels' plan deserves to be adopted.

And while they are at it, do we really need four courthouses in Lake County? Their existence is further proof of the patronage machine.

Daniels is right on track. For the sake of Lake County taxpayers, we hope he will hang tough and the Legislature will support him.

We cannot say it too many times: The best tax relief is to cut government spending.

About the circuit breakers
The circuit breakers limit tax bills to 1, 2 or 3 percent of the property's assessed value and force government to forfeit the revenue needed to achieve the tax breaks. Spending cuts would be most severe in areas with the highest tax rates.
Current circuit breakers are 2 percent for homeowners in Lake County this year, 2 percent for homeowners statewide in 2008 and 3 percent for landlords and businesses statewide in 2010. Gov. Daniels' proposal calls for caps of 1, 2 and 3 percent effective in 2009.

Your opinion, please
What do you think of Indiana Gov. Mitch Daniels' property tax relief plan?
Share your thoughts at http://nwi.com/opinion

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We'll See wrote on Dec 12, 2007 9:22 PM:

" If they actually do it, it will be good. Local government has gotten way out of hand (not that the state is any prize package). Our local governments are trying to behave like Illinois local governments. If anything we need to weaken their power, but if we can't do that directly, we can do it another way. If they don't have the money, then they can't finance abuse. Local governments need to focus on what they "must" do pursuant to the Indiana Constitution, and not do unncesary projects. A good example are parks. Now, I know everyone likes parks, I do too. However, when we haven't got enough money to run the schools, run the police departments (they could be consolidated), and pick up the garbage, why are we running a park department? I am not picking on any park department, they are just one example. "

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