Thursday, January 21, 2010

IT'S UP TO THE VOTERS NOW

On Tuesday, November 2, 2010, Hoosier voters will decide in a referendum whether or not they want the property tax caps placed in the Indiana Constitution.

The Senate voted 35-15 on Tuesday to approve the tax caps; the House approved the caps on January 12, 2010. With both legislatures approving the measure, the way is now paved for the
voter referendum in November. The referendum requires a majority to make the caps permanent and place them in the Constitution.

Four Senators from Northwest Indiana voted against making the caps permanent: Senator Karen Tallian, Ogden Dunes; Senator Lonnie Randolph, East Chicago; Senator Earline Rogers, Gary; and Senator Jim Arnold, LaPorte.

Senator Tallian voted against making the caps permanent because she feels they aren't a good solution to the property tax mess. Senator Rogers also voted no. She feels it's too premature to make the caps permanent because the full effects of the caps haven't been felt yet.

If voters approve the referendum, property tax rates would be capped at 1% for owner-occupied homes, 2% for rental properties and farmland and 3% for business and industrial properties. To pay off county debt, however, taxpayers in Lake and St. Joseph Counties will be charged at a rate above the cap until 2019.

Property taxes have impacted most Hoosiers throughout the state; some counties have been hit harder than others. It should be up to the voters to decide whether or not the caps should be made permanent and just how much government they can live with and live without.

Tuesday, January 19, 2010

TEAM HAMMOND GENERAL MEETING

The next Team Hammond general meeting will be Tuesday, January 26, 2010 at the Woodmar United Methodist Church, 7320 Northcote Avenue. Meet and greet begins at 6:30 p.m. with the general meeting to follow at 7:00 p.m.

Items on the agenda include property tax caps, elimination of townships, House Bill 1001 (lobbying reform) and updates on city and county council meetings and the Hammond school board meeting.

Any interested in property tax reform and good government are welcome to attend. For more information, contact George Janiec at (219) 678-6761.

SAY NO TO SENATE BILL 309

The Indiana Senate Tax and Fiscal Policy Committee has a public hearing scheduled for Thursday, January 21, at 9:00 AM, on Senate Bill 309.

SB 309 is best identified as Business-As-Usual-Bill #1 because it is the first General Assembly bill to increase homeowner property taxes to have a public hearing scheduled since the 2008 property tax reform program.

Please contact your State Representative and State Senator to let them know that you oppose BAUB #1. Information on how to identify and contact your State Representative and State Senator can be found at http://www.finplaneducation.net/general_assembly_ratings.htm.

The property tax reform program passed by the General Assembly in 2008 will lower 2010 total property taxes $610.6 million and 2011 total property taxes $534.0 million when compared to the 2007 statewide total property tax burden. The portion of the total property tax savings that will be enjoyed by homesteads is $457.4 million in 2010 and $401.9 million in 2011. The total combined $1.1446 billion property tax savings comes from two property tax reform categories.

1. The 1% - 2% - 3% property tax caps will provide $953.6 million of the combined $1.1446 billion in 2010 and 2011 total property tax savings. The 1% homestead property tax cap will provide $249.6 million of the combined $859.3 million in homestead property tax savings. This property tax reform category would be protected by passage of the constitutional amendment that is expected to be on the ballot this November.

2. The remaining $609.7 million in 2010 and 2011 homestead property tax savings comes mostly from the 35% supplemental homestead deduction, the state assumption of school general fund expenditures, and the qualified senior homestead credit. The state assumption of school general fund expenditures will help provide property tax savings for other property classes. This property tax reform category is susceptible to erosion by the General Assembly.

BAUB #1 will increase 2010 and 2011 statewide total property taxes $116.5 million by allowing the limit on school corporation expenditures from the capital projects fund for utility services and property and casualty insurance to increase from 3.5% to 6% of the 2005 school formula revenue. BAUB #1, which is authored by State Senator Ron Alting (Lafayette), will increase homestead property taxes $35.4 million statewide.

The state has assumed MOST school general fund expenditures, while school capital project funds get their revenue from property taxes. There has been a LOOPHOLE the past several years where school capital project funds are used to help pay for the school general fund expenditures of utility services and property and casualty insurance. BAUB #1 will make this property tax LOOPHOLE bigger.

Instead of increasing the LOOPHOLE limit, school corporations should be encouraged to find more efficient ways of handling their general fund expenditures such as insurance pools for purchasing property and casualty insurance. ALSO, allowing BAUB #1 to pass would encourage school corporations to further abuse the integrity of their capital project funds by trying to include additional general fund expenses such as maintenance and health insurance expenses.

Informed Hoosier taxpayers must insist that their General Assembly public servants oppose the property tax abuse in BAUB #1.

From Watchdog Indiana

Monday, January 18, 2010

HOUSE BILL 1001: LOBBYISTS AND CAMPAIGN CONTRIBUTIONS

TAXPAYER FRIENDLY

STATUS: HB 1001 was passed by the House Rules and Legislative Procedures Committee 9-0 on December 16, 2009.

TESTIMONY - December 16, 2009 - House Rules and Legislative Procedures Committee:

HB 1001 can be evaluated from two vantage points: (1) will the actions of lobbyists and contractors to affect government outcomes become more transparent, and (2) will ordinary citizens have a better chance to affect government outcomes.

HB 1001 is Taxpayer Friendly because it will INDEED make more transparent the actions of lobbyists and contractors to affect government outcomes. The nineteen Taxpayer Friendly provisions of HB 1001 are listed next.

1. The minimum reportable amount for the total daily gifts to a legislator or legislative employee given by a registered lobbyist is reduced from $100 to $50.

2. The minimum reportable amount for a single gift received by a legislator or legislative candidate is reduced from $100 to $50.

3. An individual who holds a state elected office and ceases to hold the state office after June 30, 2010, may not be registered as a lobbyist for 365 days after expiration of the term of office.

4. An individual who holds a position in the executive branch appointed by the Governor (other than a special state appointee) and who ceases to hold that appointment after June 30, 2010, may not be registered as a lobbyist for 365 days after ceasing to hold the appointive position.

5. A member of the General Assembly may not be registered as a lobbyist for 365 days after ceasing to be a member of the General Assembly.

6. The Governor and Governor candidate committees may not solicit campaign contributions, accept campaign contributions, and conduct other fundraising activities during the long session of the General Assembly and during the day before, the day of, and the day after each organization day.

7. Legislators may not solicit campaign contributions, accept campaign contributions, and conduct other fundraising activities during the long session of the General Assembly beginning in January.

8. Persons with contracts with state government, or who bid on contracts with state government, and certain persons affiliated with the contractors and bidders may not make political contributions to an individual who holds a state office or is a candidate for a state office.

9. State employees in the executive branch who have purchasing or procurement authority may not solicit political contributions unless the soliciting individual is a candidate for public office.

10. If a candidate or a candidate’s committee receives a contribution from a person who is prohibited from making a contribution, then they are required to pay an amount equal to the value of the contribution to the Election Division within 30 days of receiving the contribution.

11. The Election Commission shall assess a civil penalty equal to the greater of two times the amount of any prohibited contributions received, or $1,000.

12. Persons with contracts with state government, or who bid on contracts with state government, must register with the Indiana Department of Administration (IDOA).

13. The IDOA must make the information about state contractor registrants available in a searchable database on the IDOA’s web site.

14. State contractor registrants must notify their affiliated persons that they are registered.

15. A civil penalty of not more than $1,000 may be assessed for each business day that a person knowingly or intentionally fails to update a state contractor registration, fails to provide material information on a registration, or states false information on a registration. These penalties are in addition to any investigative costs incurred.

16. Contractors or bidders who violate the registration statutes may be found nonresponsible and have their contracts voided.

17. State officers, employees, and appointees in the executive branch may not accept inherently incompatible outside employment.

18. The Inspector General must create procedures for the issuance of advisory opinions granting approval for certain state employees to have outside employment.

19. If state contractors recklessly, knowingly, or intentionally make prohibited contributions, then they commit a Class B misdemeanor.

Special note should be made of the HB 1001 provisions that keep those who hold a state elected office and a position in the executive branch from joining the lobbyist ranks before a year goes by after they leave their office or position. The public good is NOT served if a public servant is using his current government influence as part of a lobbyist job application.

Special note should also be made of the HB 1001 provisions that keep persons affiliated with state government contractors and bidders, and executive branch employees who have purchasing or procurement authority, from making or soliciting political contributions for state office candidates. These provisions help prevent an egregious potential abuse that has not received a lot of public attention.

The "conflict of interest" provisions in the bill should be deleted. It should be the responsibility of a client to determine if a prospective lobbyist representing other clients involves a conflict of interest.

It is hoped that the legislative gift reports that include the lowered $50 minimum reportable amount will be made accessible online in a searchable database.

Because they require a change of heart rather than legal remedy, HB 1001 cannot be expected to lessen the obstacles to ordinary citizen Statehouse influence that are listed next.

(1) Ordinary citizens will have no greater success in getting face-to-face meetings with their Governor and General Assembly leaders to discuss important legislative matters.

(2) Ordinary citizens will have no greater success in getting their Governor and General Assembly leaders to take their phone calls about important legislative matters.

(3) Ordinary citizens will have no greater success in knowing whether or not their Governor and General Assembly leaders have read their letters and E-mails about important legislative matters.

(4) Ordinary citizens will continue to not have the same time as lobbyists to make their points during public hearings.

In conclusion, HB 1001 is Taxpayer Friendly because it will make more transparent the actions of lobbyists and contractors to affect government outcomes. However, HB 1001 will not lessen the obstacles to ordinary citizens trying to influence the decisions made at their Statehouse. On balance, HB 1001 represents a step forward in open governance and should be passed out of this Committee.

From Watchdog Indiana