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: Bill offered by state Senate honors Fourth Amendment
No law is ever going to rid domestic situations of their subjectivity, but people have a right to be secure in their homes, and the police need to keep this in mind when they come knocking.
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Editorial: Burton's retirement was overdue
Dan Burton has been a fixture in Indiana politics for nearly a half century. A staunch Republican, Burton made waves in the Statehouse and in Congress, but now it’s over. Burton recently announced his retirement and will not seek re-election in Indiana’s District 5.
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Editorial: Tempered excitement for call-center jobs is prudent
Immediately after city officials announced the location of a new call center in Anderson on Jan. 25, the “Yeah, buts ...” started.
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Editorial: Trigger law would give parents too much power
If the state is going to push for charter schools, it has to be a measured action with plenty of debate. There is a reason why the term trigger-happy has negative connotations. It means a knee-jerk reaction with little thought.
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You Said It: About Grandview, new Colts coach and the APA incident
The Anderson Parks board has created a committee to study options for Grandview Golf Course and its restaurant. (Article published Jan. 17.)
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Editorial: School disannexation bill oversteps in reach
Hoosiers grow tired of legislation that is created to address one problem in one community but ends up affecting everyone across the state. Rep. Jack Lutz’s House Bill 1047 is such a case to consider.
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Editorial: Vigilance still needed to guard White River
It’s gratifying to see the comeback the White River has made and to know that the effects of the fish kill spill are gone. Now we have to be vigilant, as groups like the White River Watchers are, to see that the river stays pristine and never again suffers such a debilitating attack.
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Editorial: Hoosiers should remember Pats are people, too
More than anything, the behavior of Indiana residents, as it applies particularly to Patriots fans, is dictated by our well-earned reputation for Hoosier hospitality.
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Editorial: It's time for reform of township government
Access to local government is still crucial, but the hour trip to township offices can now be made in a car in a shorter time.
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Editorial: AU fundraiser is a job well done
What began as a dream in 2006 is now a reality. Anderson University has raised $113 million in the largest fundraiser the school has attempted.
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Editorial: Bill offered by state Senate honors Fourth Amendment
