Governor MItch Daniels answers the questions as to who to blame for increases in local property taxes

The IndyStar reports:

"We’ve been here before. Repeatedly over the last 35 years, state government has tried to help out. State taxes have been raised and the money used to subsidize local budgets and reduce property taxes. By now, 85% of school operating costs are paid for by our state taxes, not our property taxes. Half the sales tax, 3 cents out of 6, is sent back to support local government, or your property taxes would be far higher than they already are", according to Governor Mitch Daniels.

Daniels has disarmed local officials who have consistently padded the local budget.

"I have prepared and will recommend to the legislature a proposal to cut every homeowner’s property taxes sharply and cap them forever, at no more than one per cent of a home’s true value. This last provision must be added to the state’s constitution to ensure its permanence, and guarantee that no Hoosier ever again pays more than a penny on the dollar of their home’s value.

We can lower the average Hoosier property tax bill by more than a third by removing forever the rest of school operating costs, and the cost of protecting abused and neglected children, from the local to the state level. Immediate relief should be provided to every homeowner on the May ’08 bills, and the full 1% ceiling protection put in place by 2009."

So much for local home rule with accountability going to the State over local budgets.

"To achieve better discipline while preserving local control, we must have single-point accountability for spending. Today, no one is responsible; each local taxing district sets its budget and sends you its part of the bill, which is only added up when it hits your mailbox. The County Tax Board in each county must accept the duty of reviewing the total of local spending plans and trimming those budgets as needed to keep our taxes down."

I don't like the fact that local will have control over the 1% cap, because they will keep it at the maximum. I would have lot to have seem the 1% has some kind of deduction on income taxes.

But Gov. Daniels has upset a lot of folks with his proposal.