Mayors lobby for changes to property tax plan

by Samuel King (king@wsbt.com)

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Mayors worried about the impact of property tax reform on local governments

Mishawaka Mayor Jeff Rea (left) and Goshen Mayor Allan Kauffman (right), like other mayors across Indiana, are worried about the impact of property tax reform on local governments. (WSBT photo)

By WSBT News1

GOSHEN -- State lawmakers are nearing the deadline to reach a deal on property tax reform. They have until Friday at midnight to come up with a plan. Mayors from cities and towns across the state say they think something will pass before Friday, but they're also worried it could have a devastating impact on local governments.

The Legislative Service Agency estimates South Bend would lose $26.8 million in revenue by 2010, Mishawaka would lose $6.8 million, Elkhart would lose $3.5 million and Goshen $2 million.

The mayors say they would have no choice but to cut essential services, including public safety.

“Everybody will feel the pinch of this, including our public safety departments,” said Mayor Jeff Rea, of Mishawaka. “We've been very honest with our policemen and firemen about that. That will be one of the last things we cut.”

Elkhart Mayor Dick Moore told WSBT News he’s already asked city departments to cut their budgets by 15 percent, if possible.

“To practice austerity and be as conservative as we possibly can and prepare for that eventuality, to prepare for the worst scenario we can think of, which is the loss of money,” Moore said.

Goshen Mayor Allan Kauffman says he will propose a trash collection fee, among other things, to help make up the revenue.

He says taxpayers will be in for a big surprise.

“They'll be happy for a property tax reduction, but they're not going to be happy with service cuts or a new trash fee and stuff like that,” Kauffman said.

As president of the Indiana Association of Cities and Towns, Kauffman's tried to lobby lawmakers to allow local governments to raise their own revenues to make up for the projected losses.

“There are some legislators that say don't worry about this, we'll fix it next year,” Kauffman said. “If they lower taxes this year, what's the political will going to be next year to raise the taxes to fix the problems they created this year?”

The mayors say they will have a better idea after the plan is passed. Gov. Mitch Daniels has said if lawmakers do not pass a property tax reform plan, he will call them back for a special session.

Thursday, Mar 20 at 3:36 PM Anonymous wrote ...

to wsbt. jeff rea says 4.4 % cut, gov. daniels say 3% increase. story?

Friday, Mar 14 at 10:23 PM Islander wrote ...

Hey Marj. You are sick of cocky cops and fat firemen. Well, I am a firefighter/paramedic and I'm not fat. I am tired of straining back muscles lifting fat unemployed people on a cot that want a taxi ride to the hospital because medicare will pay for it even though they don't work or contribute to our tax base. True, some guys/girls are bigger than others, but I am sure you are no peach either. How about you shovel your walk to your house so when you call 911 our fat selves can get to your door.

Friday, Mar 14 at 12:06 PM Anonymous wrote ...

Rea, you look so happy. Is it because you know you've managed to screw the people that voted for you?

Thursday, Mar 13 at 12:39 PM Walt wrote ...

Can somebody that understands the separation of county and city governments explain this? Since the schools are funded by county taxes, why are the city mayors making this their business? Shouldn't this be the responsibility of the county government? I understand the concern, but it's not their jobs.

Wednesday, Mar 12 at 10:34 AM Marj wrote ...

To many Chiefs not enough Indians. Eliminate the dead weight on payroll. I'm sick of High property taxes and bad streets, cocky cops, Fat firemen. If you stop in the city offices you will see alot of people on break. You see a road crew, 1 guy working, 5 guys watching. I'm tired of the property taxes going up.

Wednesday, Mar 12 at 10:24 AM questions wrote ...

Why would there need to be a charge for recylcing? There are centers at every grocery store. Why cant you bring these things with you? Our tax dollars pay for the police to put gas in there cars and drive them home. Why??????? Police cars should not be driven home. That would save money. I dont want to here about "how this deters crime" Give me break. I live in Elkhart and have police who live 2 houses from me. My home was broke into and he was home. Tell the Mayors to stop complaining.

Wednesday, Mar 12 at 10:08 AM NRP wrote ...

Don't they understand that the government is taking more money than we have left? You can not give from one place and ask us to pay to another place. What part of overtaxed do they not understand?

Wednesday, Mar 12 at 10:08 AM Fred wrote ...

That's funny, Ron, but too true. All any mayor or mayoral candidate would have to do is to support the property tax cuts, and agree to cut their budget, and they would be well on their way to winning the next election.

Wednesday, Mar 12 at 6:22 AM Anonymous wrote ...

To Mr dick Moore you have the typical politics go whine about tax cuts the same day you hire 8 fireman and swear them in and turn and go to a meeting about tax money being cut. You go from one meeting to the other and talk out both sides of your mouth ??? COME ON TELL THE TRUTH, come on wsbt lets tell the whole story you can't have goverment doing 2 different things tell both sides

Tuesday, Mar 11 at 10:43 PM Ron wrote ...

Overhead during a Luecke press conference...Reporter 1: "Shhh Luecke's saying something." Luecke: "Blah, blah, blah, raise taxes, whine whine." Reporter 2: "So, nobody likes him". Reporter 1 "Yeah, but our best ratings are when we report on him. That's when we get everybody to read so they can comment on how bad a mayor he is."

Tuesday, Mar 11 at 9:44 PM Anonymous wrote ...

I see we have a new member of the whiner club. Welcome Kauffman. You must be planning on this being your last term, too.

Tuesday, Mar 11 at 8:23 PM too much tax wrote ...

boo hoo, maybe we will only have 3 people watching one person working instead of 5 people watching

Tuesday, Mar 11 at 8:21 PM alice miller wrote ...

were you paying attention? The mayors said this is not to raise taxes but to make sure you were getting police and fire protection that state caps are going to take away. This is a real problem as I see it because there's nothing local officials can do to protect their public safety budgets... or you... unless OUR state legislators start to represent us. Good for these mayors that they're doing it since our state reps are too weak to stand up to a gov. that only listens to the "Colts" counties.

Tuesday, Mar 11 at 7:48 PM OVERTAXED wrote ...

It's so nice to see our local elected leaders lobbying for higher taxes for all of us, while spending our money to do it. Something just doesn't seem right about that.

Tuesday, Mar 11 at 7:15 PM rsm wrote ...

''SUCK IT UP...........

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