Gov. Daniels urges local governments to curb spending

by Sarah Rice (srice@wsbt.com)

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Governor Mitch Daniels was in Plymouth to promote his property tax relief plan

Gov. Mitch Daniels was in Plymouth Thursday, Feb. 14, 2008 to promote his property tax relief plan. (WSBT photo)

By WSBT News1

Story Created: Feb 14, 2008 at 5:03 PM EST

Story Updated: Feb 23, 2008 at 6:42 PM EST

PLYMOUTH — Gov. Mitch Daniel visited our area Thursday to tout his property tax relief plan. It would cap property taxes at 1 percent of a home's assessed value.

Local leaders fear the plan would devastate city budgets and result in major job cuts. But Gov. Daniels disagrees.

"There's no place this is more important than in the area of St. Joe County," said Gov. Daniels.

While relief is on the way to homeowners, local governments are preparing for the worst.

"Worrying is an understatement ... a major understatement," said St. Joseph County Council member Rafael Morton.

Leaders in St. Joseph County believe the plan would create a loss of 13 percent in its operating budget and cost 189 workers their jobs.

"You know this is the scare tactic we hear so often. Why would you start there? Why not overhead, why not purchasing, why not prioritize as every family does, as every business does," said Daniels.

Daniels says local government needs to curb spending. In fact, he says it's been growing twice as fast as Hoosier incomes. But local leaders say that's not the case.

“Local government, in particular cities and towns, have done a good job of spending dollars wisely. In fact, we've seen the smallest increase of any government units anywhere,” said Mishawaka Mayor Jeff Rea.

"We went into last year's budget with over a $3 million deficit. And that is basically cutting each department to the bone," said Morton.

Daniels says when people complain that government will lose money, it means taxpayers will gain money.

“They will keep more of the money they've earned and that's frankly my first concern," said Daniels.

"If House Bill 1001 is passed without any amendments, the way it sits now down state, it's going to be devastating for the city of South Bend, the city of Mishawaka and St. Joe County as a whole," said Morton.

Morton says the state should look at every county to see how the circuit breaker affects them, saying larger counties like St. Joseph would be hit the hardest.

Lawmakers have until March 14 to vote on the plan.

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