The Budget-The Republican Reform in Fort Wayne Indiana

Remember the public hearing on reforming our 1800 government model? It was touted as the way to consolidate government to reduce cost. It did not go over well in Fort Wayne. But guess what, that has never stopped the republicans from doing what they believe is best for maintaining the status quo. So, what we are hearing is about a budget shortfall that will occur in 2011. And the local officials are blaming it on the state cap on property taxes. The 2% tax supposedly will cost the coffer of Allen County something like $9 million.

Get real.


The State offered government units the Local Option Income Tax that would provide a subsidy to those units that would experience a shortfall. But what did Allen County and the City of Fort Wayne do? Nothing. And because Allen County and the City of Fort Wayne did nothing,

Nothing lost and nothing gained.

But, Allen County and the City of Fort Wayne have some options. They can request LOIT.

The first LOIT that a county may adopt would replace the property tax revenue that would have been raised due to the growth in local tax levies. The Department of Local Government Finance will set the rate, which may not exceed 1 percent.

The second LOIT that a county may adopt at a maximum rate of 1 percent would provide direct property tax relief by allowing the LOIT to be used in one of three ways: as a property tax replacement credit, as additional homestead credits or as property tax credits for qualified residential property.

Finally, the third LOIT that a county may adopt would be for public safety purposes and may not exceed 0.25 percent. However, this LOIT can only be adopted if the first two LOIT's are adopted,

According to indianacounties.org




So let's do that. NO, because, LOITs will cause the wealthy to transfer some of their wealth to low income areas or units. So Allen County and the City of Fort Wayne would rather cut the jobs of a few, rather than take dollars from the many. But, the City knows that the budget was bloated in the first place and so have no problems saying wait till next year. The wait till next year means, let's see what the state will give us before we have to pay our fair share.

So some folks will lose their job as a symbolic gesture that these folks are concerned about the taxpayers and their dollars. Nope, its not about the $9 million dollars its about consolidating government unit to protect the lifestyle of the wealthy.