Friday, October 15, 2010

"struggling finances"? make other people struggle instead!

From Ben Hershberg in the C-J...

Moving to shore up Clark County’s struggling finances, the County Council has voted to seek state approval for a special property tax increase of $7.7 million.

That's the govt's "struggling finances"-- to be more specific. The policy prescription: during a recession, increase the "struggling finances" of its citizens.

The money would be generated by raising property taxes up to 15 cents per $100 of assessed value....

The request, to be submitted no later than Tuesday, must be approved by the Indiana Department of Local Government Finance to take effect...

Eggerman said the county’s financial reserves have been spent to keep departments operating. Without more revenue next year, he said he believes more county government layoffs like the 20 estimated at the end of last year may be necessary.

But council member Dave Abbott disagreed. “I think we can make do with what we have,” said Abbott, although he acknowledged that continuing without an increase “might cost us a few projects.”

The council voted 5-2 Monday night to request the increase, called an excess levy. Abbott and councilman Chuck Moore voted against it....

If approved, the increase would become part of the county’s permanent tax base....

The bigger picture: such scenarios will increasingly play out in local/state govt finances in the next few years, especially if the economy continues to struggle. It should be interesting but painful to watch-- and especially to experience.

1 Comments:

At October 16, 2010 at 10:10 AM , Blogger Suki said...

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