In stories today in the Indianapolis Star and the Fort Wayne Journal Gazette the issue of how and who
the Governor’s tax plan will affect are reported. Both quote analysis by the nonpartisan Office of Legislative Services. Statewide, residential property taxes will drop 38.6% in 2009. However, Local Governments will receive less, depending on the county. While homeowners will see the largest decrease in property taxes, nonresidential property owners will see a reduction of approximately 27% and business property tax will decrease by 15%. According to the Governors plan, the shortfall from the property taxes will be partially made up by the state taking over some county responsibilities, such as child welfare and raising the state sales tax by 1%. From the Indy Star Story,
“Ryan Kitchell, head of the state Office of Management and Budget, also released a summary of data from a Legislative Services Agency analysis that showed how each county in Indiana will be affected by the circuit breaker.”
From the Journal Gazette story,“David Bottorff, executive director of the Association of Indiana Counties, called the findings of the analysis “devastating” for local officials“I’m not sure it’s a question of whether or not the cut’s reasonable,” said Matthew Greller, executive director of the Indiana Association of Cities and Towns. “I don’t think it’s the place of the state legislature or the administration to make spending decisions at the local level. That’s why we have mayors and council members who are elected to make those kinds of decisions.”
First, the Blogmeister would like to remind the mental health community why we care. No matter where one practices, your practice is someplace. It is that place that is currently taxed more. In a business, and yes it is a business, where control of how much is charged is not controlled by the practitioners or administrators, that increase will have to come from someplace and cannot be passed on to the consumer. More than likely it will come in further decreased practitioner pay. Second, the Blogmeister has a hard time feeling sorry for local governments who have continued to increase their payrolls, disproportionately from what is going on in their communities. A 5% decrease in spending seems reasonable compared to the 28% more property owner paid this year in increased taxes. Finally, the Blogmeister disagree’s with Mr. Greller’s comments. The Blogmeister learned long ago, if your going to take the state’s money, you play by their rules.
From the Associated Press, via the South Bend Tribune comes this 


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