Property tax reform seeks to cut overspending
Local schools unsure what to think yet
By Kevin Schnepp Staff writer

Many Hoosiers are aware of the effects of overspending and living in debt. In addition to personal financial challenges that make getting by difficult, the last thing most need is higher taxes. A proposed property tax reform plan could ease the financial burden placed on Indiana taxpayers.

Indiana Governor Mitch Daniels said overspending on school construction, libraries, fire departments and all other local services is rising faster than patrons' incomes. Daniels called to shift more responsibility to the shoulders of taxing entities to curb frivolous spending and cut operating costs.

"Any plan that makes a real difference in property taxation will have to go to its root cause, and that is excessive spending," Daniels stated in a speech last week.

The governor scrambled to offer a reform proposal when property tax assessments skyrocketed this year. He outlined plans to "cut and cap" taxes and spending, raise the sales tax one percent, ditch the state's outdated assessment system, provide voter referendums for large spending requests and make some local costs the state's responsibility among other details.

Information provided on the governor's Web site at www.in.gov/gov/3105.htm lists 30 taxing bodies and the amounts they've indebted their patrons for projects. Figures ranged from $25.5 million dollars for White County Hospital to almost $130 million dollars for Avon schools in Hendricks County. Lafayette School Corporation was shown to have borrowed $40.5 million dollars.

Carroll Consolidated School Corporation Superintendent John Sayers said his school district was careful to function without incurring large debt the past few years. He was concerned the reform proposal might not support the state's financial goals without borrowing money from other funds or replacing already-borrowed money from such sources as the teachers' retirement fund.

"I am concerned we're replacing a predictable source of income with one which could fluctuate with the economy," Sayers said Tuesday. "Whether the changes are beneficial or harmful will depend on how the economy ebbs and flows."

Delphi Community School Corporation is in the process of prioritizing updates and upgrades to its facilities. Debt perhaps as high as $20 million could be issued. Administrators say many items on the corporation's renovation list are needs, not wants, but the reform proposal could impact the district's plans.

Efforts to contact DCSC Interim Superintendent Steve Sailor were unsuccessful. When asked about Daniels' call for voter referendums on all significant spending projects, DCSC Board President Robert Resler said he believed the school already had a suitable system in place.

"We have talked amongst ourselves and at regional meetings," Resler said Friday. "We have that now with the remonstrance process."

The balance of what to do and how much to spend will be up to taxpayers and DCSC to find during upcoming meetings. The next DCSC public work session will be Nov. 5 at 6 p.m. in the corporation office. The board's regular meeting will follow at 7.