Notes from the budget hearings - August 12

Here's what piqued my interest in last night's budget hearings. Again, this is not a list of the important things discussed.

Under the proposed budget for 2010, City Controller David Reynolds has proposed depositing $16M in the City's rainy day fund. If I heard right, this $16M is from County Option Income Tax revenues. Councillor Bob Cockrum inquired about the rules governing on what the rainy day funds could be spent. In particular he wanted to know if that $16M could be taken from the rainy day fund to be spent on a 'municipal corporation'. The Capital Improvement Board is a municipal corporation.

Notes from the budget hearings - August 11

Here's what I found interesting on Tuesday night at the Administration and Finance committee hearing. This isn't a complete description of the important things discussed, just some 'outliers' that piqued my interest.

Besides the budget hearings for that night, there was consideration of Prop. 292, which would reduce the Township Assessor salaries back to the levels they had in 1980. As you recall, the Township Assessor positions were eliminated last year - Decatur's by State Legislative fiat, and the remaining 8 by referendum. The State Legislature had called out Marion County's Township Assessors to be paid a salary until their term of office was up. But, the Council was given the authority to drop the salaries back to the 1980 levels. Evidently this came up last year, introduced by Councillor Vaughn. The 1980 salaries varied by Township from $19,470 to $27,500. So, in fairness, the Council compromised and made all the salaries $27,500. The proposal was reintroduced this year as Prop. 292 by Councillor Lutz, to drop all to their 1980 levels despite the differences. The committee considered a motion to table - that failed. They considered a motion to amend to raise the County Assessor salary to that of County Treasurer and Auditor - that failed. And, finally, the motion to move Prop. 292 to the full Council with a do-pass recommendation - failed for lack of a majority. It stays in committee and will be considered again in the future.

From the discussions for the Council office budget, there was this nugget. They are looking forward to redistricting, which is done after every US Census to ensure about equal population Council districts. This can be the genesis of gerrymandered safe districts unless the Courts intercede like they did in the early 2000's. The cost of the redistricting is to be spread over the 2010 and 2011 budgets. The hit for 2010 is estimated at $270,000 with an equal amount expected to be requested in the following budget. I smell pork. But, maybe its just the State Fair.

Heads Down - Break's Over

There's an old joke that I won't be able to tell well. Something about some bad guy going to Hell and the Devil gives him three choices of 'rooms' in which he can spend eternity. One is your typical vision of hell - fire and brimstone; screaming and suffering. The next is different, but of equal torment. The third room is full of feces with the eternal sufferers wading about waist deep. Stinks to high heaven, so to speak. So, the bad fellow decides this is the room for him. Just as he climbs in, a voice come over the loudspeaker - "Okay folks. Heads down. The break is over."

Just Monday night the City-County Council voted 15-14 for what they called a two year bandaid for the Capital Improvement Board.

This morning - maybe 2 and a half days later - the Star runs a piece about the CIB needing MORE MONEY ! The 'end times for downtown' campaign was so successful, they have extended its run.

Heads down Indy. Break's over.

Getting By On Only $65 Million More

Wow !! I was all prepared for a tight budget for 2010, what with the tax caps coming on and the City needing to pare something like $30M from its budget due to those caps. I listened to Mayor Ballard's budget introduction last night and heard about some federal stimulus dollars; not bad to soften the blow, I thought. I jotted a note that the Assessor consolidation would 'save' $2M - they promised $3M and I'd still like to see that $3M - but for 2010 I can live with $2M. I heard about salary freezes for all but union negotiated contracts and about 300 employees who make below poverty wages. I make a note to look up the poverty level so I have a better picture. But, nonetheless, that seemed commendable, given the tight, perhaps bleak budget picture. The Mayor spoke of having to bridge a $40M shortfall as the tax caps came online. Tough job. I'm beginning to think an 'attaboy' is in order.

Imagine my surprise just a while ago, when looking over the budget numbers in preparation for tonight's first budget hearings, I see that 2010 revenues are expected to exceed those for 2009 by a whopping $65 Million. Wow !! You can bridge a lot of gaps with an additional $65 Million. In all fairness, $24 Million of that is additional money from the State and the Feds. Still, its not like the City is sliding toward catastrophe because of the property tax caps.

Here's how the revenue numbers look - rounding to the nearest million dollars:

City/County Revenues	2009 Projected ($millions)	2010 Introduced ($millions)
Taxes	654	681
Licenses & Permits	11	14
Charges for Services	196	220
State & Federal Grants and Taxes	254	278
Sale and Lease of Property	2	1
Fees for Services	10	8
Fines & Penalties	5	7
Misc. & Interest	22	19
Debt Service Subsidies	2	2
Other Financing & Transfers	1	0
Trust & Agency Receipts	6	0
Intragovernmental	5	3
TOTAL	1169	1235

Even with the property tax caps coming in full force for 2010, total tax revenues increased by $27M. So, considering the stated $30M shortfall due to the caps, the remaining tax revenues must have soared by a stunning $57M. Even with all the name calling and denunciations going on, former Mayor Peterson's tax increase continues to save Mayor Ballard's bacon. The claim of having to bridge a $40 M shortfall due to the property tax caps is pretty clearly hyperbole and not the whole story.

The 'End Times for Downtown' Ad Campaign Scores

It was nip and tuck last night, but in the end, the 'End Times for Downtown' campaign waged by Mayor Greg Ballard, CIB President Bob Grand, and Council President Bob Cockrum, won 15-14.

Voting aye on Prop. 285 to raise the hotel tax, increase the Professional Sports Development Area, and accept a $27 M loan from the State with no plan on how to repay same, were:

Jackie Nytes -- D
Virginia Cain -- R
Jeff Cardwell -- R
Bob Cockrum -- R
Susie Day -- R
Ben Hunter -- R
Bob Lutz -- R
Barbara Malone -- R
Janice McHenry -- R
Mike McQuillen -- R
Marilyn Pfisterer -- R
Lincoln Plowman -- R
Kent Smith -- R
Mike Speedy -- R
Ryan Vaughn -- R

In an ungainly hand-off to the next sitting Council and the next sitting Mayor, this Council action will necessitate the 2013 increase in two less popular taxes; car rental and admissions taxes.

Meanwhile, Councillor Nytes' Prop. 331, which creates a 5-member panel to promote even more money for the CIB bailout to come from the donut Counties, passed unanimously. Nytes said the aim was to find a permanent solution, even though there will be no study of what the real problems with the CIB have been. This was no game changer.

Councillor Lutz began a front court press for more money to go to the Indianapolis Convention and Visitors Association, even though that was supposedly taken off the table as part of the game plan.

The Public continues to pay the price of admission, only to be relegated to the cheap seats.

All sports dynasties come to an end. But, the one led by the CIB gains more and more tax money every year and has receives no critical review for job performance. When it fails, the claim is made that it is only because the taxpayers were not generous enough, not because the whole thing is a Ponzi scheme that has gotten out of hand. The action last night was as shameless as the Pacers charging the stands to beat up a spectator a few years ago.

Bad sports metaphors aside, the citizens of Indianapolis deserve a plan to make downtown self sufficient and to reset priorities that make downtown work for the whole County, not continue the practice of the whole County working for downtown.

Council Meeting Chock Full Tonight

Tonight's City-County Council meeting will be an interesting one. Click here for the agenda.

For consideration by the Council acting as a committee of the whole are two new proposals.

Prop 309 -- by Councillor Bob Cockrum -- calls a meeting of the Marion County Income Tax Council for August 25 at 5:00 pm in Room 260 of the City-County Building to discuss whether the tax rate should be adjusted.

Prop 331 -- by Councillor Jackie Nytes -- creates a council task force to research and develop a long-term regional solution to the funding of the Capital Improvement Board (CIB) of Managers and its related entities -- the task force would have two Democrat and two Republican Council members and one appointee of the Mayor and would represent the Council at the General Assembly and before the contiguous Counties on matters related to a long term financial solution to CIB funding.

Coming before the Council once again is Councillor McQuillen's Prop 237, banning solicitation at intersections.

Two biggies tonight -- Mayor Greg Ballard will introduce his 2010 City-County budget and the full Council will vote on Prop 285, which increases the hotel tax by 1%, accepts a $27M loan from the State, and expands the Professional Sports Development Area to capture an additional $8M a year, all proceeds to go to the operating budget of the CIB.

Proposals to be introduced tonight include:

Prop 292 , authored by Councillors Lutz, Mansfield and McQuillen, that would reduce the Township Assessor salaries from $27,500 per year to $19,470 for Decatur, Franklin, and Pike -- $23,364 for Lawrence and Perry -- $25,960 for Warren, Washington, and Wayne -- while Center Township Assessor gets the full $27,500. WOW !!!

Prop 293, authored by Councillor Coleman, that would direct the Director and Board of Indy Parks to consider selling all golf courses owned by the City.

Prop 303, also authored by Councillor Coleman, that would require the internet posting of all contracts with any unit or board of the City or County government, or any municipal corporation, within 7 days of the execution of the contract - with a search feature for accessibility.

Prop 310, authored by Councillor Cockrum, that would direct the Council's votes on the Marion County Income Tax Council to increase the County homestead credit from 8% to 8.0086% and keep the county option income tax rate at 1%, keep the additional county option income tax at 0.27%, keep the public safety income tax rate at 0.35% -- choosing not to reduce those taxes.

Introduction of the various budget ordinances. I have posted links to the proposed budget ordinances for the municipal corporations in a side bar, and will add the City-County budget data and ordinance once those links are made live on the City's website.

Budget Hearings Begin

Tonight begins the annual City-County budget process, with the introduction by Mayor Ballard of his budget to the Council. Hearings will be held by all committees of the Council for 6 weeks, followed by a vote by the full Council in late September.

The hearing schedule for the week is as follows:

5:30 pm -- Tuesday, August 11 -- Room 260 --
2010 Budget Introduction by David Reynolds, Controller, City of Indianapolis
Budget discussions for Office of the Mayor, Office of Internal Audit, Office of Finance and Management, and Office of Corporation Counsel

5:30 pm -- Wednesday, August 12 -- Room 260 --
Budget discussions for County Coroner, Forensic Services Agency, Community Corrections, and Metropolitan Emergency Communications Agency

5:00 pm -- Thursday, August 13 -- Room 260 --
Budget discussions for Department of Parks and Recreation

I will post links to the budget data in a sidebar once it is up on the City's website.