Kevin Corcoran, for the Indy Star, has an article entitled Prison debts force hike in property tax
Many counties owe the state money for the cost of incarcerating juveniles. While the state is responsible for the full cost of incarcerating adults, it is responsible only for paying half the cost of incarcerating juveniles. Counties are obligated to pay for the other half. As the economy headed south, many counties got behind in their payments. Marion County represents 2/3 of the total $85.8 million owed to the state.
The new budget requires counties to either pay the debt over 4 years from existing funds or all at once by selling bonds and raising property taxes. A few years back, the state restructured property taxes in effect jacking them way up. To ease the pain, the state has been providing property tax subsidies. Now, the state is using those subsidies as a club. If counties don’t pay up, the state is going to withhold the subsidies. (I’m seeing a disturbing habit on the part of the state legislature of forcing counties to be the one to raise taxes. That way county commissioners and council members take the heat while legislators can run around pretending they managed to fund state government and never raised taxes.)
I wonder how the Department of Corrections’ balance sheet is looking. Last time I heard about the juvenile incarceration issue in my county, the county jail had been holding Dept. of Correction inmates and was owed roughly the same amount for that service as the county owed the state for juvenile incarceration. Could be interesting if counties retaliate by calling all the state’s debts due.