Indiana

ASK AND YE SHALL, MAKE THAT MAY, RECEIVE

By Abdul Hakim-Shabazz

The Indiana State Senate Tax Policy Committee unanimously approved property tax reform legislation this morning. However, there was one measure in the bill that caught my attention.

Both Republicans and Democrats unanimously approved picking pre-1977 police and fire pensions. These pensions are the bane of the existence of local governments. In Indianapolis alone the pensions costs the city between $24-$30 million a year. They were also part of the reason for the 65-percent income tax increase that helped defeat former Mayor Bart Peterson.

Current Mayor Greg Ballard told lawmakers it would be helpful if the state picked up the pension tab. Ballard was practically written off during his testimony in the House Ways and Means Committee and also in some portions of the Indiana blogosphere, but apparently someone convinced the Senators that this was a good idea.

Some House Democrats warn however, that due to the economic slowdown the state may not be able to pick up the levy, however these are also some of the same people who spent about $350 million in tax relief when they passed out the Governor’s plan.

Speaking of Governors, Mitch Daniels told me Friday he was open to the state picking up the pre-1977 pension costs if it meant lower property taxes for Hoosiers and it was done in a responsible manner.

I also asked Ballard if the state picked up the pension costs would that mean an automatic reduction in the public safety tax.  The Mayor said he could not answer that question until he knew the full effect of the state’s property tax reform.

So while the Mayor may not get the assistance he wants, it looks like it didn’t hurt to ask.

Full post as published by Indiana Barrister on February 19, 2008 (boomark / email).