When the economy is in bad shape, government units often suffer too. The tax base dries up, and government has difficulty finding funding to support its staffing and other expenses.
Add to this mix a new tax formula in Indiana that provides less property tax revenue to local government, and counties, cities and towns are thrown into crisis.
They have five choices:
A. Raise taxes
B. Use resources more efficiently
C. Cut services
D. Find other sources of revenue
E. Some combination of the four
Too often, government turns to choice A without fully exhausting the other options. That appears to be happening in Madison County, where the city of Anderson has voted to add 0.5 percent to the county option income tax. That would bring the total COIT rate to 1.75 percent, adding $200 to the annual tax bill of a person who earns $40,000 and making that person’s bill $700 for the year.
Councilmen Rodney Chamberlain and Art Pepelea, to their credit, voted against the increase.
Has the City of Anderson already taken measures to use resources more efficiently and to reduce services? Yes. Has it looked for other sources of revenue? Yes (a user fee for trash pickup has been instituted).
Has it enacted every potential cut to reduce resources to account for a shrinking population and to make sure that every position in city government is absolutely essential? Not by a long shot.
There are still those in city government who act as if their first responsibility is to city employees. It’s not. Their first and foremost responsibility is to the citizens of the city, to keep taxes low and to run lean while providing essential services. Government does not exist to provide jobs; it exists to serve the people with the best possible efficiency.
Raising the tax rate is almost always a bad idea. It’s a particularly bad idea right now, when the citizens of the city are suffering through a bad economy right along with the city itself. The city owes it to those residents to hold the line on taxes.
Now, there’s still hope. The City of Anderson needs Madison County or a combination of other local government entities to follow its lead and approve the COIT increase for the increase to take effect.
County Council will hold a public hearing at 7 p.m. Monday, Oct. 26, to discuss the potential COIT increase (the site of the meeting has not yet been announced). No doubt, county employees who are concerned about their jobs will show up to speak in favor of it. A strong showing of other citizens who are opposed could influence council’s decision, prompting it to exhaust all other options to make up its budget shortfall.
This is often the way democracy works: Those in government push for more money, and the citizenship fights back. Surely, residents of Madison County didn’t battle so long and hard against property tax inequities only to see their gains lost to an increase in local income tax.
Editorials
Editorial: Rise up against local tax increase
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Editorial: New 911 consolidation is good for county
When it comes to emergencies, a fast and proper response is sometimes the difference between life and death. Therefore it is important for 911 services to be coordinated for the best response time. It’s even better if those services are consolidated with one location fielding calls from multiple areas.
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Editorial: On Valentine’s Day, indulge in selfishness of volunteering
In the final analysis, we’re all selfish beings. Everything we do, at its core, is motivated by what is good for us.
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You Said It: About roundabouts, Mayor Smith’s firings, recycling, State of City address
The bottom line in Mayor Kevin Smith’s State of the City address Tuesday during the Anderson Rotary Club’s luncheon at Anderson Country Club was simple: To attract investment, you have to make investments. (Article published Feb. 4.)
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Editorial: Firings show inability to turn foes into friends
Politics is a double-edged sword.
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Editorial: Help celebrate city's strong black history
Many times we overlook the small achievements of residents long gone who made a better Anderson for those of us alive today. There is no better time to recognize and cherish those stories than during Black History Month.
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Editorial: Madison County needs vision for future tourism
Slot machines, gospel music, a beautiful state park and candy are all thriving as destination sites. Now is the time to explore a way to connect these valuable attractions and encourage new ideas.
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Editorial: AHS grad rates moving up, must be pushed ever higher
A diploma is a must, but it has to mean something. Anderson High School must do this the right way, not cutting corners and passing students through classes, but making them accountable for learning the subject matter.
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Editorial: With changes to program, why not begin recycling?
The public has to understand the importance of recycling aluminum and steel cans, cardboard, glass, newspapers and certain plastics. Besides minimizing a community’s waste, recycling saves energy, natural resources and the environment.
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Editorial: Reality returns after Super Bowl mania
While we loved what the Super Bowl did for our reputation, it’s time to get back to the real world. Let’s recap the lost week.
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You Said It: About contract, 'Teen Mom,' State of the City
Each Monday, The Herald Bulletin publishes “You Said It,” a compilation of reader comments from www.theheraldbulletin.com, coupled with responses by the newspaper’s editorial board.
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Editorial: New 911 consolidation is good for county
