Indiana

Time For Grown-Up Government Conversation

By Abdul Hakim-Shabazz

After spending the evening covering another Indianapolis budget vote, I am now convinced more than ever that now is the perfect time for a grown-up conversation about local government and finance.   I say this for a couple of reasons.

First, the general public is woefully ignorant about how government finances actually work.  Second, the property tax caps that will be passed into the Indiana State Constitution next Tuesday will force the discussion.

As the Indianapolis City-County Council Monday night passed its $1.1 billion spending plan,  there were complaints about the funding for the Capitol Improvement Board and the $8 million it is giving to the Convention and Visitors Association as well as the $30 million loan for the Indiana Pacers which is being used for the operation of Conseco Fieldhouse.

It’s easy to see how the public would be upset over money that goes for sports-related reasons, while libraries have to reduce hours and bus service barely scrapes by.  However when you try to explain to the public that money for the CIB can’t be used for libraries and buses, they look at you like you are speaking Aramaic.  You could take every dime dedicated for Conseco, Lucas Oil, Victory Field and the Convention Center and it wouldn’t keep one library open or bus running, under current Indiana law.  Someone needs to explain this not only to the public, but certain members of the Council.

Now this doesn’t mean money can’t be found for these important services.  The Council used funds from reduced levies and dedicated them to the library and IndyGo.  In addition, as the city reduces it’s debt, as evidenced by its AAA credit rating, funds that were originally used to pay off debt can be redirected for libraries and buses.  It’s the equivalent of  paying off a credit card and using that money toward your household expenses.  By my last count, there’s at least $6 million that will be freed up next year due to debt reduction.  The trick will be for the city not to take on new debt.

However,  while cash management can help local governments like Indianapolis  with their finances in the new property tax cap world that is coming, the Indiana General Assembly is going to have to give the locals more flexibility to shift funds to cover expenses.   I understand the need for dedicated funds to have dedicated revenue, but if locals are going to have to live with caps, then lawmakers need to give them the tools to do their job.  And in my conversations with policy makers, both conservative Republicans and liberal Democrats both seem to agree on this point.   Of course, with those tools will have to come more accountability and transparency.

I think now is perfect time for all this to take place.   Monday night’s budget vote clearly illustrates this point.  Now is the time for all good lawmakers to come to the aid of their citizens and have the grown-up conversation about government finance.

Full post as published by Indiana Barrister on October 26, 2010 (boomark / email).