INDIANAPOLIS — Indiana House Speaker B. Patrick Bauer (D-South Bend) today issued the following statement after Indiana Senate Republicans revealed details of a plan to provide property tax relief for Hoosiers in 2007:
"The program announced today by Sen. Luke Kenley (R-Noblesville) offers many elements of the plan advocated by Indiana House Democrats in House Bill 1007 from earlier this session.
"Both proposals would have the state assume a greater share of costs for child welfare levies. Local units of government would have greater ability to use local option income taxes in order to reduce dependence on property taxes. Local units would have a way to pay for critical public safety services like police and fire protection. Finally, both proposals provide a way to better prioritize local capital construction projects.
"And just like House Democrats, Senate Republicans understand the need to provide property tax relief right now, since it is expected that property taxes will go up by as much as 15 to 20 percent in 2007.
Bauer goes on to say that there are also concerns for House Democrats.
Since House Republicans failed to step up to the plate on property tax reform, Bauer suggested that the Governor needs to do something, too."Elimination of the property tax replacement credit represents a major change in the way property tax relief has been handled in Indiana since Gov. Bowen in the 1970s. There are questions about how the particulars of this plan will benefit businesses versus homeowners, and how it will affect urban counties versus rural areas.
"In addition, there are questions about the long-range impact of changing the way we finance schools in Indiana. We want to make sure that public education in our state is funded equitably and that our schools have a stable source of funding.
"The real question is whether the governor feels that way. Permanent property tax relief can happen this session, but this governor has to step up to the plate and convince the members of his own party that something more than a 'band-aid' has to be done this year.
The full press release can be found at this link. For a bit more background on the Senate proposal see my post at this link.