Indianapolis – Indianapolis City-County Council minority leader Phil Borst is urging the Indiana General Assembly to enact the Indiana Association of Cities and Towns plan called Hometown Matters. Hometown Matters is a detailed bi-partisan plan developed over the last two years by Indiana’s mayors and council members.
The plan calls for property tax cuts, government efficiencies, and new flexible revenues to fund local government. The funding of cities and towns is not a one size fits all approach. Hometown Matters helps cities large and small.
Time is running out for this legislative session to provide meaningful long-term property tax relief, and provide the means for adequately funding cities and towns. “Marion County can no longer just continue to raise property taxes and local option income taxes. In addition to more efficiencies, we need a new revenue that will grow at 5% a year, that 30% is paid by out of area people that come for conventions, sporting events, shopping, etc., and solves our public safety funding needs.” says Borst.
The much needed new revenue could be a regional sales tax. For the last two years, Borst has advocated a regional sales tax to help all nine area counties fund local government, to cut property taxes, and to fund regional needs such a mass transit and economic development.
Under Borst’s plan, an average Marion County resident’s total taxes paid would go down. The average family would pay some $38 more with a one percent increase in sales tax; however, the average $100,000 home would save about $160 in property taxes. With more government efficiencies and the sales tax revenue, Indianapolis could also solve the many pressing public safety needs such a police and fire pensions, the funding of police and fire departments, courts, prosecutors, public defenders, the crime lab, jail beds, a new criminal justice complex, and faith based initiatives proposed by local clergy. The projected additional $10M needed to fund the operation of Lucas Oil Stadium and the expanded convention center would be provided under Borst’s plan.
SUMMARY OF BORST COMPREHENSIVE FUNDING PLAN
USING APPROXIMATE FIGURES
events, shopping, vacations, etc.
$35.00M for police and fire operating and pensions
$20.00M for county courts, prosecutors, public defenders, jail
beds, crime lab, probation officers, etc.
$10.00M for yearly payments for a criminal justice building
$ 5.00M faith based crime programs proposed by local clergy
$22.00M inventory tax loss to prevent property tax increase
$ 6.00M 2% circuit breaker and property tax replacement credit
cap to prevent property tax increase
$ 6.00M for Boy/Girls School DOC payments to state
$31.00M yearly increase in welfare payments to state
$ 6.00M for municipal corporations with a property tax rate:
Library Board, Health and Hospital, and IndyGo
$ 3.00M for four excluded cities and townships
$10.00M increased costs to CIB for stadium/convention