Mayors: Tax relief plan will "strangle local government"

by Dustin Grove (grove@wsbt.com)

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Effect of property tax relief on local government

Mishawaka Mayor Jeff Rea joined South Bend Mayor Steve Luecke, dozens of firefighters and police officers, and St. Joseph County officials on Tuesday, Feb. 12, 2008 to discuss the effect property tax relief will have on local government. (WSBT photo)

By WSBT News1

Story Created: Feb 12, 2008 at 4:49 PM EST

Story Updated: Feb 18, 2008 at 6:45 PM EST

SOUTH BEND — City and county leaders across the state say they're concerned about the property tax relief plan designed to help out homeowners next year.

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The proposal, as part of House Bill 1001, would cap taxes at 1 percent of a home's assessed value.

Tuesday, South Bend mayor Steve Luecke said it was time the state provide relief for homeowners, but any plan must be “fair and balanced.” He said the plan lawmakers are considering now would mean massive funding cuts and strangle local government.

“We’re not talking about trimming a little fat from the budget. We’re talking about cutting muscle and bone,” said Luecke.

South Bend stands to lose $100 million over the next four years, forcing the city to cut 65 police officer positions, along with 62 firefighters, and 30 parks and recreation workers.

Luecke was joined Tuesday morning by Mishawaka Mayor Jeff Rea, dozens of firefighters and police officers, and St. Joseph County officials.

St. Joseph County Auditor Peter Mullen said 189 county employees would also be laid off if the proposal passes.

The Indiana Association of Cities and Towns suggested one solution would be for the state to impose a replacement tax and let individual counties decide what that is.

Lawmakers have until March 14 to vote on some sort of relief plan.

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