The basic equation isn’t that tough, less property tax revenue equals reduced local government services. According to testimony heard by the House Ways & Means committee, the circuit breaker provisions that cap residential property tax at 1% of assessed value, local governments stand to see a significant reduction in revenue. Potentially this means things like reduced fire protection, fewer police officers, elimination of recycling programs, and charges for trash collection. But then, the way I hear it from some quarters, government can’t do anything right and ruins everything it tries, so I guess we won’t miss government interference with the infallible free market in areas such as fire protection, police protection, and waste disposal.
From a more cynical perspective however, I will note that it’s good politics for government entities facing cuts to trot out the services citizens value most. But, that raises the problem that these folks are seldom given very specific direction on what programs to cut. Citizens don’t do a good job envisioning that the much talked about but seldom specified “wasteful” spending encompasses any of the services they enjoy themselves. To the extent people have specific ideas at all, it’s usually the service being provided to the other guy that is “wasteful.”
This is why the first thing the National Park Service offers to close in the face of any proposed budget cut is the Washington Monument…
Garbage collection is something easily privatized. That’s why very few communites offer garbage service collected by actual municipal employees. Ditto for recycling.
In the 1% cap environment, municipally provided garbage service will become extinct.
More than likely, water and sewer service is the next thing to be privatized. Look for more public-private partnerships (like the Toll Road) in this area.
Other areas ripe for public-private partnerships are parks and recreation departments. It is hard to see why parks should be landscaped by public employees, for example.
I was at a town meeting last night, and our new muni golf course is going to be managed by public employees who will be making $52k per year. Why? Why should the town even be providing the “service” directly?
No doubt, at 1%, police and firefighters are going to be cut, especially in the north Lake County cities. But why do they have to be the first thing to be cut?
These firefighters were from Hammond, a city that pays for the college tuition of residents children and who built a $45M public golf course on top of a slag heap. Fiscal responsibility is not their strong suit!
Or Schereville can stop building “Taj Mahal” restroom facilities in public parks. I’m a simple man who just needs a nice, private place to pee!
saw also in the paper yesterday where Hammond has its own “helath club.” That could be cut too.
Plus if municipal areas get rid of all the townships ans streamline government intities, that would save big bucks.
What the politicians are proposing is a large tax increase with a large shift from property taxes to sales taxes. No tax decrease. NO TAX CUT as the political mantra echoed by the mindless media indicates.
They need to pass the bipartisan recommendations of the Shepard Kernan Commission which lowers the cost of delivering government services by $400 million.
A message from Former Gov. Joe Kernan
We’ve got to stop governing like this!
http://www.indianachamber.com/