Another Budget - Another Big Whopper

Why can't we get a budget introduced without some accompanying, outrageous, whopper made about our financial situation?

This time around, Chief of Staff (aka Mayor) Ryan Vaughn, is reported by John Tuohy of the IndyStar, as having said

Vaughn said tax collections have lagged since passage of property tax caps in 2008. Next year's property tax revenues will be $63 million less than in 2008 -- the homestead tax credit and the police tax were a couple of the only options the city has left to collect additional money, Vaughn said.

Come on Ryan.  Either you know you are pulling a fast one over the public, or you do not.  Neither option is adequate to transparency in government.

Vaughn specifically picked 2008 for a comparison because that was the last year before the tax caps program was fully implemented.  You don't have to talk to government officials very long before they are bemoaning tax caps.  I don't want to dismiss all of their claims out of hand.  But - and this is a big 'but' - they never seem to recall the massive amount of obligations that the State took over, funded by the 1 percent increase in State sales tax.

In the case of the City-County, the State of Indiana took over funding of specific obligations that used to cost the City-County over $113 M a year.  For instance, the famous pre-1977 police and fire pensions.  This pension had not had prudent payments made to it over the years and those public safety folks were beginning to retire in mass.  This is the financial cliff that Peterson was facing when he got the public safety tax raised.

So, when you subtract the $113 M a year from the 2008 property taxes, well then Mayor Ballard got quite a golden ticket from the State Legislature.  When you subtract that $113 M a year in obligations, AND account for tax cap penalties, the City-County collected just about $50 M more from property taxes in 2014 than in 2008.  Yes, I said MORE.

Tuohy's article also states

The city projects it will collect $574 million in property and income taxes this year, an increase of $34 million over last year.

Okay - there's the real numbers for 2015.  Not this flagrant misrepresentation of our financial resources compared to pre-property-tax-caps days.  Geez.

Here is what I wrote back in April for the Indiana Forefront blog - IBJ's blog.

Below is a graph showing the City-County total property tax levy and the net levy (total levy minus circuit breaker penalty) from 2008 through 2014. To simplify the jargon, the total levy is what they asked for, the net levy is what they got. The state took over City-County obligations in 2009 and the circuit breakers began to hit in 2010.

As you can see, the total property tax levy (what they asked for) and net levy (what they got) took a real jump in 2009 (The 2008 data is normalized for the $113M in City-County obligations taken over by the State in subsequent years so we can compare apples to apples.)  Without a doubt, the initial year of the tax caps was good for the resources of Indianapolis.

I look forward to finding out more about the 2015 budget.  But, please save all of us from the big whoppers.  Let's act like responsible adults.

Hold On To Your Wallets - Its Budget Time

Tonight's City County Council meeting will kick off the budget process for next year's spending and taxing.

Mayor Ballard will give his annual budget introductory remarks. 

Elimination of the local homestead credit is once again included - Prop 248.  Not to make ends meet anymore.  Not to contain the ballooning public safety budget 'deficit' anymore.  This time he wants to eliminate it to fund pre-K education.

I did not see increases in income taxes, but expect to see that appear soon enough.

Being introduced tonight is a second attempt to increase the stormwater user fee that appears on the property tax bill.  Prop 249 would automatically increase the fee each and every year going forward.  This feature was also included in the first attempt and drew speculation that the Ballard administration was just sweetening the pot so that he could sell off this utility to a private concern.

We are being treated again to a lobbyist-drafted ordinance sponsored by Councillor Mary Moriarty Adams.  Prop 250 would allow digital billboards in Marion County.

Prop 254 is offered in reaction to Ballard-Vaughn's recently inked agreement with Covanta for 'recycling', which contained a 70% tax abatement that was not called a tax abatement.  Prop 254 urges the State Legislature to make any agreement containing a rebate on taxes or a forgiveness of taxes to be subject to Council approval, just like any other abatement in a TIF district is.

Coming before the Council for a vote this evening are a few items, including:

Prop 241 urges IPL to abandon coal as a fuel at its Harding Street plant.  Check this one off as completed.

Props 162 and 163 would allow $100,000 from the Mayor's Office budget be donated to United Way.  This brings up two questions - why is there so much fluff in the Mayor's Office budget and why should taxpayers be subsidizing any non-for-profit that brings in millions of dollars a year on its own?

Prop 349, 2013 would establish a TIF in the Avondale Meadows area.  This TIF is much needed, no doubt.  But specificity regarding its funding remain lacking and of concern.  Also of concern is a lack of resident control of or input on the projects that might get funded.

Prop 195 would establish a landlord registry.  It would cost local residential landlords $5 per year, but it would require out of state owners to establish an in-state manager responsible for any infractions that might beset the property.  Failure to register a property would result in fines ranging from $100 to $500.  This is a good one in my book.

Another good one is Prop 232, which would require defibrillators in all public buildings and buildings housing a department or agency of the City County government.

Budget hearings start this week.  Tuesday will see the introduction by Controller Jason Dudich as well as the budget presentation his office, the Office of Corporation Counsel, and two others.  Wednesday will be the budgets of the Public Defender, Community Corrections, and the Child Support division of the Prosecutor's office.  Both hearings will begin at 5:30 pm in Room 260 of the City-County Building.  Thursday will be the hearing for the Parks Department budget.  That will begin at 5:00 pm, same room.