Articles
Governor Daniels' Weekly Wrap-up: 10/30/07
A look at news and events in the Daniels Administration
Volume 2, Issue 54
October 22-28, 2007
Governor Daniels announces plan for property tax relief
Oct. 23, 2007- During a live television broadcast on Tuesday evening. Governor Mitch Daniels outlined his plan to provide real and lasting property tax relief for Hoosiers. The proposal reduces property taxes for all homeowners and places a cap on the tax rate, ensuring that Hoosiers will never pay more than one percent of their home's true value. In order to protect citizens from future increases, the governor will seek an amendment to
"In the last three years, we have already solved problems like the state government deficit and the state highway shortfall that people said would take years or were simply impossible. We can solve this one, too, and open a new era of opportunity in which Indiana is the nation's leader in defending and promoting the American dream of home ownership," said Daniels.
Following the announcement, Governor Daniels traveled throughout the state to discuss his solution to the state's property tax crisis. He made stops in
"I have looked at every option for change. I have talked with Hoosiers all over the state. I have studied
Read Governor Daniels' speech. Listen to the governor's remarks. View additional materials.
Expansions, 'in-sourcing' fuel
Oct. 22, 2007- Growth of Indiana businesses and international investment are spurring
"We're very proud of the Indiana Economic Development Corporation. Breaking records is nice, but we must continue these results year after year to be the state we want to be," said Governor Mitch Daniels.
Following the governor's creation of the agency in 2005, the state completed competitive projects with 135 businesses that committed to create 14,439 new jobs and invest more than $2.68 billion in their
BMV increases accessibility for customers
Oct. 23, 2007- The Indiana Bureau of Motor Vehicles (BMV) revealed two major improvements to access to branch services this week.
Ron Stiver, BMV Commissioner, and Terry R. Farias, President and CEO of the AAA Hoosier Motor Club, announced that vehicle titling and registration services will soon be available at five AAA Hoosier Motor Club branch offices. Details of the partnership were explained on Tuesday at the club's newly-remodeled
"When I came to the BMV, Governor Daniels directed me to improve customer service on several fronts, one of which was to offer customers the choice to access BMV services outside of the traditional branch visit," Stiver explained. "Today, we are taking a major step forward through our new partnership with AAA Hoosier Motor Club."
On Friday, Commissioner Stiver traveled to
Packaging giant to expand
Oct. 25, 2007- UPS, the world's largest package delivery company, announced it will expand its packaging hub in
The company will make a multi-million dollar investment to add more than 17,000 square feet to its northeast
Eleven
Oct. 26, 2007- Eleven new sites across
The title is the namesake of the state's 'Shovel Ready' program that identifies sites which have undergone extensive title work, proof of ownership, legal and environmental review and qualify for expedited permitting with state regulatory agencies.
"With more and more companies looking for sites where they can have a shovel in the ground as quickly as possible, this program gives Indiana an advantage when it comes to competing with other states for new investments and new jobs," said Nathan Feltman, Secretary of Commerce and chief executive officer of the Indiana Economic Development Corporation. "This is another vital tool in our economic development toolbox that will help give
Designed to lower the cost of site development, improve efficiency of state permitting and enhance the marketability of sites statewide, the program has already begun to achieve success, said Brad Moore, the Shovel-Ready project manager for the Indiana Economic Development Corporation.
Governor's schedule for October 30-31
Note: All times are local.
Tuesday, October 30
- Governor Mitch Daniels and Evansville Mayor Jonathan Weinzapfel will join executives from Berry Plastics for a major economic development announcement.
9 a.m.
Wednesday, October 31
- The governor and First Lady Cheri Daniels will host trick-or-treaters at the Governor's Residence from 5 - 7 p.m.
5 p.m.
Governor's Residence
IN THE NEWS
Daniels tax plan really is 'fair, far-reaching'
Muncie Star Press
October 28, 2007
The most common public reaction to the property tax reform plan offered by Gov. Mitch Daniels is to term it "a good start" for discussion and resolution. Actually, it is far more than that.
The plan is comprehensive, wide-ranging and incorporates new ideas as well as a few wrinkles that have been talked about for years in
It also rates high in its appeal to taxpayers and to legislators of both parties in the Indiana General Assembly. It nods to some Democratic Party concepts (state assumption of all school and child welfare costs), as well as Republican demands for stronger local control over spending.
It is simple enough for everyone to understand, even though it tackles nearly every aspect of "the perfect storm" of causes that fueled this year's immense property tax bills.
Daniels has said his plan is "fair, far-reaching and final," an apt and accurate description, although legislators and many public officials and school leaders would dispute the "finality" until they have their chance to question some of the tenets.
The plan incorporates many arguments and recommendations advocated in past Star Press editorials. These include making the state fully responsible for school and child welfare operating costs (both mandates are spelled out in the constitution and statutes as state responsibilities), requiring local governments to base budgets on revenues that are available rather than raising taxes to feed spending appetites, and retaining the property tax as a reasonable and reliable way to finance some essential government services.
Daniels' careful and studious explanation of why he decided against junking the property tax altogether - too many imponderables and too much risk, especially during serious downturns in the state economy - should put the repeal issue to rest for all time.
In advocating retention of the tax but insisting on serious reforms in how it is used and applied, Daniels addressed a number of root causes for the current tax crisis.
These include his push to cap tax bills at 3 percent (of assessed property valuation) for businesses instead of the projected 1 percent limit for residential properties. This differential has angered business-group lobbyists, but in a wider sense should be seen as a reaction to the fact that eliminating the business inventory tax a few years ago helped prompt the tax crisis.
In other words, businesses have had their tax break; now they need to help homeowners who are still woozy from being hit with alarming tax increases.
The Daniels plan also provides fixes for other tax crisis causes, including increasing the homestead tax credit, providing a far more focused and professional method of property assessment and installing stronger controls on local spending.
The latter two proposals - a single assessor for all counties and local referendum votes on major spending projects - could produce trouble for the Daniels plan in any legislature dominated by government interests that resist change. Nevertheless, it is fair in both cases to make Daniels, and those backing his reforms, fully justify their reasoning.
For instance, it seems far more efficient and cost-effective to eliminate more than 1,000 local township assessors in favor of one trained and qualified assessor appointed by each county council and supplemented with trained workers who would apply uniform assessing standards.
But the legislature needs to be aware of any unintended consequences, such as making the assessing function less accessible to the public.
Similarly, the Daniels plan for voter referendums on local government capital projects - including school building plans - should be closely evaluated. School officials, as expected, have been loud in their criticism of eliminating a system they say is working - the petition-remonstrance plan - thus the legislature should proceed with caution on this change.
Overall, however, the Daniels plan is thoughtful, revolutionary in scope and remarkable in its ability to address all of the ills that produced
Still, more balance is needed, and legislators need to strike that balance if the tax changes they make are to represent true reform.
Finally, a tax solution for long haul
October 24, 2007
Our position: Governor offers far-reaching yet realistic plan for overhauling property tax system.
Property taxes have been a perennial problem for homeowners and politicians in
None of the tinkering had lasting effect. After brief pauses, the property tax trend line continued its upward trajectory.
Gov. Mitch Daniels on Tuesday proposed a tax plan that could finally end that cycle. Important details, including the language of a proposed constitutional amendment, must still be determined, but Daniels has offered a far-reaching yet realistic framework for overhauling
Among key features, the proposal would cap homeowners' property taxes at 1 percent of assessed value while also increasing the homestead deduction. The state would pay all of schools' operating and transportation costs, easing a significant burden on local taxpayers. The state also would finally take over paying for child welfare, a system it already operates. Each of those ideas is appealing.
The plan promotes efficiency and professionalism by eliminating township assessors in favor of an appointed assessor for each county.
It champions accountability by forcing county tax review boards to approve taxing districts' plans for spending.
Taxpayers also would have greater say in how their money is spent.
Daniels estimates the average homeowner would see property tax bills fall by one-third if the General Assembly approves the plan. Revenue would be replaced in part by increasing the sales tax by another penny. That move could hurt businesses in the state's border counties, but a slightly higher sales tax is preferable to the dramatic increases in property taxes that have battered homeowners this year and in past years.
Legislators need to dig into the details of Daniels' proposal. How the state would ensure equity, for example, in school transportation funding must be determined.
But the governor's package moves the property tax debate forward in a promising direction. Lawmakers must give their highest priority to long-lasting property reform in next year's session. Daniels has provided them with a sound map for beginning that journey.
Property tax plan great first step
Fort Wayne News-Sentinel
October 29, 2007
Because Hoosiers have been faced with the prospect of seeing their property taxes rise an average of 24 percent this year - as high as 57 percent for some
We think Daniels' proposal is a good one and takes bold steps to afford necessary relief to property owners faced with painful increases. We applaud the governor for this plan.
The plan, released Tuesday, would cut property tax bills by about a third on average statewide, in part by capping residential property taxes at 1 percent of a home's assessed value, at 2 percent for rental properties and 3 percent for businesses.
The proposal also would raise the state sales tax by 1 percentage point, provide an additional homestead deduction and impose several controls on local spending, including voter referendums for major building projects. It also calls for the elimination of elected county assessors.
Rep. Jeff Espich, R-Uniondale, said Daniels' proposal "is an even stronger assurance to homeowners and other property taxpayers that they are going to enjoy continued and even more permanent, more final tax relief."
Locally, both
The day after Daniels announced his plan, some other local government officials throughout the state expressed concern about the added restraints it would bring. Some business leaders questioned whether the proposal is constitutional. And some school officials objected to referendums on building projects.
Daniels said the reactions he has received show the public thinks it is a great plan, but he said people ask for more specifics and clarification and offer suggestions. And that's fine.
"There are a lot of tough judgment calls in here, and I don't doubt we'll see lots of changes and some improvements," Daniels said in an Indianapolis Star story last week.
"This bold plan gives the legislature a starting point to begin the process of bringing much needed property tax relief in 2008," Rep. Jackie Walorski, R-Lakeville, said.
"It's a step in the right direction," said Sen. Jim Arnold, D-LaPorte, "and gives us enough time before the (legislative) session to get into it and build on it."
And that's the point. It's a great plan, and if there are some tweaks needed here and there, let's get to them and make this happen.
Daniels' tax plan
The Issue: Governor proposes steps to ease property taxes.
Our View: It looks pretty good.
October 29, 2007
In answer to those Hoosiers in an uproar this year about property tax increases, Gov. Mitch Daniels has come forward with a list of proposed changes that should ease that burden and quiet the concerns of homeowners who seem to erupt anew every few years.
No tax plan is perfect. This one may require some tinkering by the Legislature, but overall, we like it. Indeed, given the mixed results of past efforts to adjust
Among its features, Daniels' plan would raise the state sales tax from 6 percent to 7 percent while at the same time shifting the remaining 15 percent of school operating costs paid from local property taxes to the state. It would also shift the costs for care of neglected and abused children from local property taxes to the state.
Beginning in 2009, the plan would cap homeowners' property taxes at 1 percent of the home's assessed value, cap rental property at 2 percent, and cap business property taxes at 3 percent. In conjunction with that step, Daniels would seek a constitutional amendment to make caps harder to undo. In addition, he would increase the homestead credit.
And there's more.
He would have a tax board in each county to review and approve all spending plans.
He would require that all "significant" local construction projects be approved by a referendum.
And finally, he would replace all elected assessors in each county with a single professional assessor to be appointed by the county councils.
At the end of the day, the average homeowner in
We particularly like the proposal to require that each major building project face a public referendum.
This is something that Hoosiers who are unhappy with government spending have been wanting for years, and now it is time to give it to them. What it will mean for major building projects is that backers, in and out of government, are going to have to do a good job of selling them to the taxpayers.
As to those who complain that the sales tax increase would hurt business, we would point out that businesses were helped when
We also applaud the proposal to reduce the size of township government in
Daniels won't get everything he wants. We're likely to have some thoughtful debate on whether the constitution needs to be amended, for example, and on how much local control school districts would be giving up.
That debate is welcome, even though, it seems to us, what Daniels is proposing is pretty much what taxpayers have wanted for many more years than we can recall.
