The Indiana Legislature passed several good laws on property tax limits. By the year 2010, they have limited everyone's property tax to 2 percent of assessed value.
Its first implementation was for homeowners -- limiting the tax liability of Hoosiers actually living in their home property by utilizing the homestead exemption. Although this has probably helped some wealthy people, it continues to be a real safety net for the middle class and lower middle class, which is of particular importance in Lake County. Although the 2 percent safety net is not meant as a solution to all the sudden increases in property taxes for Hoosiers, it is a cap preventing many Hoosiers from loosing their homes and property.
The property tax that rental-building owners have to pay is passed on to the renters who must ultimately bear the burden of the increased property tax. Consequently, the Legislature placed a 2 percent tax cap on rental property to go into effect in 2008. After 2008, the rents in Indiana will not have to go up exorbitantly and, in many cases, may even go down or at least remain steady. All of this is good for the rental market, both the people renting and rental-property owners -- a true win-win situation.
For decades, Indiana has been unable to develop new business, while losing old businesses. In Northwest Indiana itself, there has only been a net 300 new business growth over the past decade. It would make no sense, then, for Indiana to put all the weight of local government growth on the back of business, while claiming to help it. Therefore, starting in 2010, the Legislature has included business property under the 2 percent cap. This not only is a matter of equity and fairness, but also smart economic development. Over the past 15 years, Tom McDermott Sr., as president of the Northwest Indiana Forum, argued vehemently for limiting property tax on businesses as a way of promoting economic growth for Lake County.
With the sole exception of Lake County, everyone in the state accepts these limitations, believes they are fair and will promote economic activity, and are living within their limits.
This legislative program seems to have minimal consequences for other counties. Out of 92 counties in Indiana, only Lake County is screaming that the "sky will fall" if it is forced to live within these limits.
However, Lake County politicians have created their own bed and now they need to lie in it. Despite almost a decade of economic warnings and legal indictments, politics as usual continues to rule in Lake County.
In East Chicago, 81-year-old City Councilman Gus Kouros gets a two-year extension, to 2011, on his yearly $72,000 contract "managing" the school district's food programs. Mayor George Pabey decided to give information technology guru John Aguilera an $85,000 contract and he no longer is considering a bid for mayor. It is so blatant that the very next day after receiving the contract, Aguilera holds a news conference announcing that he is not running for mayor.
Hammond Mayor Tom McDermott Jr. continues to exponentially increase the city's budget annually, while spending millions on legal settlements and lawyer fees.
In fact, since the property tax issue came to the forefront four years ago, not a single Lake County taxing entity has lowered or even maintained its spending levels.
Regrettably, the only way to put a stop to this is by ending the free-flowing spigot of taxpayer money. Corruption and incompetence is neither an explanation nor an excuse for changing the statewide law. If everyone else can live with it, so must Lake County.
State Representative Chester Dobis is the sole politician in NWI to take up the challenge and to show courage by standing up against the waste and abuse he has watched for years. He has informed Lake County politicians that he is not going to support any change downstate until he sees substantial improvements in how local government operates. To show how clearly he is thinking, he is not going to fall for promises again, since they never materialize.
Representative Dobis is a representative who is truly speaking truth to power. His stand is the true hope for the citizens of NWI for a responsive government in Lake County. All citizens in Indiana should commend him and support him in his stand.
The following comment was placed on this blog by nwi:
I am going to respond after the comment.
"Do Steve Fowler's comments here make sense to anyone? I take his point to be that the prof hates some local politicians therefore he has no valid opinions. Fowler then goes on to question the prof's commitment to free speech in a comment on the prof's very own blog. This guy sounds a lot like "Oracle of the Region" who posts on several local boards. The speed at which they each expose their hypocrisy cannot be coincidental.
Back on topic. I am still curious how Rep Dobis expected to curtail local government spending without the circuit breaker law?"
NWI you are right. The Oracle of the Region is Steve Fowler. He has admitted on the posts, I am not "outing" him. First of all I do not hate any local politicians. Some I like and some I don't, but that has nothing to do with whether or not I agree with them or not. I cannot say that this is the case with the people who criticize me.
The McGroupies not only criticize me personally, they find it necessary to continuously go after my job as a way to silence me. The program to undermine my employment has been ongoing ever since McDermott was elected, three years ago. Sadly this has been done with the ongoing cooperation of the local branch of a major big ten University, Purdue.
This is not only approaching a breach of my contract with Purdue, making them liable, it may possibly bring into liability the Mayor and the campus leadership if it continues. All this information seems to be with Steve Fowler since he is the one that has reported it, unequivocally, by his knowledge, not a source, that this so-called activity is going on in the University (e.g., Fowler indicated that the university is right now investigating me -- of course this brought a "merry christmas" remark from him and he also indicated that come the spring semester, I'll know all about it). Without being a lawyer I presume that this makes him liable also.
The McGroupies do not believe in "freedom of speech" otherwise they would never, ever go after my, or anyone else's job. That is their specialty.
In answer to the question about Representative Dobis. I do not know how he will prevent changes to the 2% cap. Since this is already a done deal, it only needs to be left alone. I have criticized his activities in the past; but in this case I want to encourage him and the other Representative from other parts of the State that not everyone here wants to give the local politicians a blank check. We want to turn off their line of credit.
Posted by: Maurice Eisenstein | Tuesday, December 19, 2006 at 11:29 AM
NWI, Steve Fowler's comments make little to no sense to me. "Oracle of the Region?" That's the funniest thing I've heard all month.
Posted by: maprap | Tuesday, December 19, 2006 at 10:54 AM
Do Steve Fowler's comments here make sense to anyone? I take his point to be that the prof hates some local politicians therefore he has no valid opinions. Fowler then goes on to question the prof's commitment to free speech in a comment on the prof's very own blog. This guy sounds a lot like "Oracle of the Region" who posts on several local boards. The speed at which they each expose their hypocrisy cannot be coincidental.
Back on topic. I am still curious how Rep Dobis expected to curtail local government spending without the circuit breaker law?
Posted by: nwi | Tuesday, December 19, 2006 at 10:05 AM
Mr. Fowler,
You failed to mention where it is you so brilliantly and insightfully "spew" your "opinions." Please tell. To repeat an earlier post. You are a pathetic self-righteous sycophant.
Posted by: maprap | Tuesday, December 19, 2006 at 09:23 AM
map, nice try. but your crap throwing isnt to be tolerated quietly. i do use other venues to air my opinion. but im not going to let lies and misinformation to be published free from criticism or challenge anywhere.
funny but i dont see you ignoring posts on the the threads on message boards that are positive toward hammond. you feel a need to add your two cents of negativity quite often.
if you folks value freedom of speech so much why cant you stand it when someone publically disagrees with you? i'll challenge Maurice on what he says. but if he keeps it to opinion (and doesnt represent it as absolute fact), i wont challenge his right to say it. but darned right ill be right behind him correcting the record. i care too much for this region to let his venom spew out unabated.
if maurice wants to ban posting and leave this blog to his comments only he is free to do so. but if he is going to allow posts from the public...rest assurred mine will be here as long as his comments are.
Posted by: steve fowler | Tuesday, December 19, 2006 at 07:27 AM
Please, please, please Mr. Fowler, if you think that you are so brilliant and insightful, why don't you get your own blog? Instead, you spew your self-righteous vomit here.
Posted by: maprap | Monday, December 18, 2006 at 09:07 PM
uh maurice. you commend dobis for something he opposed and was the one person to vote against. furthurmore here are his comments from nov 21 in the times
"There's something devastating coming down the road if we don't address it in the session," Dobis warned.
That something is the circuit breaker, a new law that will cap all property tax bills in Indiana at 2 percent of gross assessed value, meaning $2,000 on a $100,000 home or $2 million on a $100 million steel mill. The cap forces local governments, including counties, cities and school corporations, to absorb the
lake county is the only part of the state against the cap? bs!
from http://www.fox28.com/News/index.php?ID=9291
Rep. B. Pat Bauer, Democratic Speaker of the House says, "Savings of $150-$200 a year of gouging, sales tax gouging is important to them."
Important to Hoosier tax payers who might save at the pumps, but pay more to own a home. The 2 percent property tax cap is up for debate.
Rep. Ryan Dvorak, D-Granger says, "There may be a change for business property taxpayers just because there is enough people seem to be supporting that. I like the idea of a 2 percent cap especially for homeowners. I think that's something people should pay attention to."
if the 2% cap was such a widely viewed success how could leaders of both parties already be working to fix it when it hasnt even gone fully into effect yet?
once again you are showing that you have no valid opinion to offer other than your despising certain local officials
Posted by: steve fowler | Monday, December 18, 2006 at 08:25 PM
Why was Rep Dobis the only member of the house (vote 95-1) or senate (vote 50-0) that voted against the 2% circuit breaker law? Was that vote an example of his informing "Lake County politicians that he is not going to support any change downstate until he sees substantial improvements in how local government operates?" I don't see how he expected spending reductions to occur without the circuit breaker.
Link to news article about vote: http://nwitimes.com/articles/2006/03/15/news/top_news/8788b72fbc04df1586257132001a36f4.txt
Link to circuit breaker fact sheet: http://indianatownshipassoc.org/news/circuit_breaker_fact_sheet.pdf
Posted by: nwi | Monday, December 18, 2006 at 03:01 PM