Northwest Indiana Discussion

CROWN POINT | Local government officials are divided on whether Lake County's proposed new 2 percent cap on property taxes is a political gimmick, a threat or the beginning of fiscal responsibility.

The Lake County Council meets 6 p.m. Tuesday to pass the tax credit for homeowners and owner-occupied apartment buildings of four units or less on second and final reading. The council voted 6-1 for it Thursday night on first reading.

That pleased a crowd of hundreds of taxpayers who attended the special meeting, as did the council's refusal to pass a county option income tax to replace an estimated loss of more than $14 million in property tax revenues.

Local officials who were counting on the income tax to balance their budgets at city and town halls, school, libraries and other government units aren't applauding.

Gary was counting on $9 million, Hammond on $2.7 million and East Chicago on $1.5 million. Munster and Whiting both will lose more than $600,000 in property tax revenues and Griffith more than $500,000, according to council records.

"It's easy to pass a cap and not fund it," Hammond Mayor Thomas McDermott Jr. said Friday. "In my opinion, they were just playing politics. I'm not sure if what they did is legal. I think it will be challenged."

McDermott said the consequences of an unfunded cap mean little to his city because his City Council passed its own earlier this year.

"Taxpayers in Hammond will be protected. We have a circuit breaker, and it's funded until Dec. 31, 2007."

Griffith Clerk-Treasurer Ronald Szafarczyk said Friday he is afraid the new tax cap will force cuts of nearly $100,000 in the town's 2006 budget.

Gary Public Library Director Samuel Custard said the belt tightening began earlier in his reading rooms.

"We are operating at 65 percent of our budget. We are only doing the essential things we must do."

He said he hasn't had to resort to layoffs yet.

"That is what I'm trying my best not to. But we never know what it may come to."

East Chicago Public Library Director James Rajchel said, "At this point we are even worse off than it appears on the surface. We expected a $2 million collection (recently), and it came in just below $1.6 million."

Whiting School Superintendent Sandra Martinez estimates the tax cap, combined with a $400,000 shortfall in the last year, will result in more than a 6 percent reduction in the district's general fund, with which it pays salaries and other daily operating expenses.

"We have four teaching positions we are not replacing this year. We'll have larger classrooms and the loss of programs we aren't able to offer.

Munster Assistant Superintendent Richard Sopko said, "I'll have to sharpen my pencil, but we aren't going to close our doors."

North Township Board member Frank Mrvan Jr. said he considers the situation a challenge he is ready to accept.

"I believe there is ample amount of waste the North Township board will be able to examine. We can cut fat and make it more lean and provide services."

Mrvan said, "I don't think the intent of the tax cap is to trim (poor relief recipients') medication or shelter or school clothing for kids. I think it's meant to reduce too many employees or contracts in which there are excess profits."

He said the board has eliminated patronage positions on the payroll in the past, but Township Trustee G. Gregory Cvitkovich moves money around to keep such employees under different job titles. Cvitkovich couldn't be reached Friday for comment.

"It is somewhat a cat and mouse game between efficiency and patronage," Mrvan said.

nwitimes on Saturday, June 25, 2005

Well, East Chicago just gave its residents an additional $500.00 tax credit! The other towns are too cheapo to do something this for they're residents.

I think McDermott has got it all wrong. He says "It's easy to pass a cap and not fund it." Um... It's easy to let government offices grow out of control and not fund it. You can't just decide how much money the local government wants and demand that tax payers pay it.

I can't go buy a million dollar house on the beach then go to my boss and tell him he must pay me more so I can pay for it. The tax payers have spoken. They can not afford the tax rates that are being imposed. It's time for McDermot and other government officials to figure out how to live within our means.

I watched "The Truth" the other day.
My understanding for the tax thing for E.C. is
You have to pay your tax bill.
then take your paid tax bill to city hall, and show it to them,
and then they will issue you a rebate check for $500.

WRONG! Or at least wrong data or disinformation given out by the TRUTH. I know people there, and they just get the bill, and the tax credit is ALREADY on the tax bill....that simple!

Dang! I was hopin to get me one of those $500. checks.

Sir, why listen to loosers?