Latest news with #IndianaSchoolBoardsAssociation
Yahoo
18-04-2025
- Business
- Yahoo
The less-heralded provisions of property tax reform
Several more nuanced provisions in the new property tax law are worth discussion. (Getty Images) There are some big opinions on the overall impact of the property tax bill that lawmakers passed and Gov. Mike Braun celebrated. I don't think it's either as good or as bad as some believe — but today, I want to focus on some smaller provisions that deserve notice. They aren't sexy, like a $300 homeowner credit or a business personal property tax cut. But they do make a difference. The first is a bond debt cooling-off period. Under current law, when a local unit of government is planning to bond for a new project, it'll often do it when another bond is set to expire. That means local officials can tell taxpayers they won't see an increase in their tax bill. That is technically true, but they also won't see a decrease. Senate Enrolled Act 1 requires a one-year freeze after a bond expires so that taxpayers see the reduction. Indiana Senate sends finalized local property, income tax plan to governor Another change is moving all referenda votes to the general election. Schools use referenda largely for construction projects but can also hold them for school security and operational needs if they feel the state hasn't provided what they need. Of course, they still have to convince taxpayers to fund those needs. For years, these votes were allowed in primary elections, when fewer Hoosiers go to the polls. Lawmakers believe moving them to general elections gives more transparency to the costs that lie above the percent caps for bills. According to data collected by the Indiana School Boards Association, the school referendum pass rate in Indiana is 16 percentage points higher at the primary election than at the general election. The organization believes this is because primary voters are better informed and highly motivated to vote for or against the referendum. But voters in the general election are often surprised by the referendum and reflexively vote no. Several provisions in the new law require affirmative voting on taxes, which can only be a good thing. One section says if a unit's assessed value remains the same, its levy cannot exceed the year before unless its fiscal body votes to do so by ordinance following a separate public hearing. Also, if assessed value does grow, it requires a decrease in the tax rate to bring in the same amount of money unless it's affirmatively raised. This language is meant to draw attention to the automatic nature of property taxes, which are essentially a calculation involving tax rate and assessed value. Similarly, local income taxes — which got a lot of attention in discussion over the property tax package — will revert to zero each year. This forces an annual vote by fiscal leaders of local government to continue collecting that money. I'm not actually sure this is necessary, and I can't imagine state lawmakers would want to vote on the state income or sales tax every single year. But it is consistent with other moves to make the overall taxation system more open and understandable. The last bits of language I want to highlight are deep in the weeds of property taxes. The maximum levy growth quotient currently limits how much local property tax levies can rise in a year based on a six-year rolling average of non-farm personal income growth. Because of inflation, it rose to 5% in 2023 compared to 3.4% in 2019. Lawmakers last year put in an artificial cap of 4% and Senate Enrolled Act 1 extends that another year. The bill also limits excess levy appeals by units. In that past, cities, counties and other units were allowed to ask for more revenue based on certain circumstances, such as assessed value growth and school transportation costs. Those won't be allowed any longer, though an appeal would still be an option in case of natural disaster or other emergency. None of these items individually — or even collectively — will likely drop your tax obligation in any massive way. But they do create a more responsive and open system so that Hoosiers can more easily understand the decisions that are being made. It also puts local officials on the hot seat instead of state lawmakers. 'They're waving a flag, saying we're the ones cutting your taxes … when what they're doing is shifting everything on to the local government and saying, 'You be the bad guys,'' Sen. Ron Alting told Based in Lafayette. He was one of 12 Republicans to vote against the bill. Some believe it didn't go far enough to cut property taxes. In the end, those who simply disagree with the mechanism of property taxes will never be pleased with what occurred. But from a pragmatic standpoint, this package was more than I thought Gov. Mike Braun could get. SUBSCRIBE: GET THE MORNING HEADLINES DELIVERED TO YOUR INBOX
Yahoo
07-02-2025
- Business
- Yahoo
First draft: Hoosiers react to 2025 budget proposal
Terry Spradlin, the executive director of the Indiana School Boards Association, listens to a Ways and Means committee member on Feb. 6, 2025. (Whitney Downard/Indiana Capital Chronicle) Nearly 100 Hoosiers trekked to the Indiana Statehouse Thursday, many seeking to convince lawmakers to restore funding lost under Gov. Mike Braun's budget proposal. With tight forecasted revenues, Braun opted to curtail agency expenses in favor of state tax relief. Testimony on Thursday responded to Braun's budget; House lawmakers will introduce their own version next week. Dozens pitched a bevy of programs slashed or eliminated by Braun, from dual-language classrooms and juvenile recidivism prevention to Dolly Parton's Imagination Library and the direct flights program. Testimony lasted six hours before the House Ways and Means Committee. 'I knew … this was going to be a very challenging year for all of us,' summarized Denny Costerison, who spoke on behalf of the Indiana Association of School Business Officials. Costerison said he'd testified on the budget each year since 1981. He kept his comments brief, recognizing the few publicly available details on school funding, but promised lawmakers he'd continue advocating on behalf of Indiana's schools. Others said they were 'grateful' for their flat funding, like Emily Bryant with Feeding Indiana's Hungry, who said that food banks would continue to receive $2 million under the proposed budget. In the face of grim revenue projections, some pointed to untapped opportunities: such as increasing taxes on cigarettes and alcohol purchases to fund mental health shortfalls. Other topics included salaries for Indiana State Police officers, funding for the CHOICE Board and tourism dollars. Several groups made the case for increasing dollars dedicated to the Benjamin Harrison Conservation Trust Fund and trails. Environmentalists said trust funding of $10 million in the last budget cycle had been used in the past to leverage matching funds to further stretch dollars. Pushing that fund to $15 million — up from the $10 million in the budget proposal — could do even more, several said. 'Put their needs first': Braun calls for property tax, health care price cuts at State of the State 'When you invest public dollars in the Harrison trust of the Next Level Trails program, you're getting a good return on (your) investment,' said Tim Maloney on behalf of the Indiana Conservation Alliance. 'So when you think about what's the best way to spend state money — these programs have a track record.' Outdoor programming supporting trails and other amenities can spur economic development and encourage Hoosiers to exercise, improving quality of life, supporters said. Moderately wealthy Hoosiers pushed for the expansion of the state's voucher program for non-public schools. The program currently excludes only those earning more than roughly $220,000 — about three times the median Hoosier family income of $70,051. Families making more than $200,000 are the fastest-growing segment of voucher growth. Braun's budget would remove all income caps. Other families with disabled children praised the state's Education Savings Accounts, which fund education expenses for those families. Braun has been a vocal proponent of expanding school choice. Investing in the state's military bases[/subhed[ Several Hoosiers advocated for a new line item in the proposed budget: a military base infrastructure grant program. As outlined in an accompanying bill, which hasn't yet received a hearing, the annual, $25 million fund would be administered by the Indiana Economic Development Corp., which houses the Indiana Defense Task Force. 'The aging infrastructure of our Indiana military bases threatens mission readiness and sustainability,' said Matt Craig, the director of Crane Community Support for Radius Indiana. The Naval Surface Warfare Center, Crane Division in Martin County focuses on engineering and technical support, offering higher-than-average salaries for the area, continued Craig. Aside from the economic development boost, Craig warned that not investing in such facilities could put Indiana at risk of Base Realignment and Closure, a process where the Department of Defense may close select military installations. Nearly half a dozen other states had created such infrastructure funds, despite the fact that most such buildings are owned and operated by the federal government — a flag for committee Democrats. 'It seems to me, our first step has to be to ask our federal friends to do their jobs,' quipped Rep. Ed DeLaney, an Indianapolis Democrat. Supporters from around the state pointed to these military bases as key community partners, despite struggles with utilities like water and electricity. Veterans advocate Lisa Wilken also flagged the movement of money from the Veterans Trust Fund, a savings account funded by private donations. Wilken said the Indiana Department of Veterans Affairs had been permitted to take a combined $2.25 million in the last budget cycle for other programming — now up to $2.5 million in the budget proposal. She asked lawmakers to directly fund the agency, rather than allowing it to use funds from the trust, which she said had roughly $11 million left. SUBSCRIBE: GET THE MORNING HEADLINES DELIVERED TO YOUR INBOX
