V14 N6 Thursday, Sept. 20, 2007 Indiana’s antiestablishment era Both 2007 and 2008 could be brutal for the status quo By BRIAN A. HOWEY INDIANAPOLIS - For Bart Peterson, Al Huntington, Kevin Smith, Stephen Luecke, Wayne Seybold and other incumbent mayors, these are nervous days. They are incumbent mayors on the ballot in times when Hoosiers have taken to the streets, the council chambers, even taunting mayors in their own front yards, to protest high taxes and the escalating cost of government. They watched 11 incumbent mayors fall in the May pri- mary. There has been scant polling data this cycle, though WISH- TV polled Indianapolis Mayor Peterson’s race with Republican Greg Ballard and found him to have a 52-38 percent lead, which was virtually the same as a GOP poll in August. But Ballard has had scarce resources and his only ads, which he has not confirmed are officially from his campaign, have appeared on YouTube. That could change as Marion County Prosecutor Carl Brizzi and power attorney Bob Grand hold a big fundraiser for Ballard next Monday Thompson is leading establishment Democrat guber- at Grand’s home. He also picked up the endorsement of Peterson’s natorial favorite Jim Schellinger by 41 to 10 percent. former public safety director Robert Turner today. Senate Minority Leader Richard Young placed sec- A WISH-TV poll released Wednesday shows that 37 per- ond with 16 percent. It is perceived in many Demo- cent favor replacing Gov. Mitch Daniels, with 39 percent favoring re-election. It also shows that former congresswoman Jill Long See Page 3 Reduce property taxes? By CAMERON CARTER INDIANAPOLIS - After months of reading newspa- pers and blogs, perusing government web sites, attending public meetings and visiting with numerous bureaucrats, elected officials and colleagues, one can only conclude that “As our campaign continues to the current property tax crisis has been long in the making and involves many com- grow and as we spread our mes- plex factors. While vary- sage to more and more Hoosiers, I ing in intensity around the state, there is no doubt am confident that we will be in the that the crisis is systemic in nature and taxpay- best position to defeat Mitch Dan- ers (many ill-informed) are out for blood – panic iels.” - Jill Long Thompson Page 2 Thursday, Sept. 20, 2007 among the political class is in the air. The Howey Political Report is The Howey Political Report The situation calls for serious, PO Box 40265 published by NewsLink Inc. It Indianapolis, IN 46240-0265. sober reflection and analysis and, to was founded in 1994. some surprise given the uproar, the www.howeypolitics.com conduct of both the Kenley and Ker- Brian A. Howey, Publisher [email protected] nan-Shepard commissions seems to Mark Schoeff Jr., Washington Indianapolis Office: 317-202-0210. be delivering just that. However, with Writer 2007 municipal elections occurring in a Howey’s Mobile: 317-506-0883. Mark Curry, Washington Writer Indianapolis Fax: 317-254-0535. matter of weeks and the 2008 election Beverly Phillips, associate editor Washington, DC Office: 202-256-5822. year looming, the temptation for both Jack E. Howey, Editor Business Office: 317-254-0535. tinkering and simplistic solutions is ©2007, The Howey Political Report. great. Both must be avoided. Subscriptions: All rights reserved. Photocopying, Internet The complex combination $350 annually HPR via e-mail; forwarding, faxing or reproducing in any of factors is resulting in greatly varied $550 annually HPR & HPR Daily Wire. form, in whole or part, is a violation of impacts across the state and between Call 317-254-0535. federal law. individual taxpayers (an outcome, one should note, expressly forbidden by adjustments. Reason dictates that a establish budgets without regard to the state constitution, which is quite top-to-bottom reform, aimed at reduc- the spending of other overlapping explicit in the treatment of property ing the number of officials involved jurisdictions. Nothing under Indiana taxation). Each county, city, school in applying the assessment standards law requires them to consider what district and separate taxing district (of and more clearly establishing responsi- their colleagues are doing in terms of which there are far too many) has its bility for the final product, is needed to spending, which results in massive net own story. An individual’s property tax improve the quality and uniformity of spending increases and an ever-in- bill depends upon: (1) the assessed assessments. creasing, indeed crushing, tax burden. value of his property and the assessed In short, the duty to as- It doesn’t matter to them value of the rest of the properties in sess property should be removed because the current system allows each respective political jurisdiction; from townships – which have proven each to make its own spending deci- and (2) the budgets/levies for those themselves patently incompetent sions and essentially write the check too-numerous jurisdictions, many of in the assessment of both residen- for whatever it wants. The problem is which overlap. tial and, especially, commercial and they are all writing a check from the Yes, it is all very complicated industrial properties – and moved same account and it is up to you, the and one would be hard pressed to to a more competent and efficient taxpayer, to make the deposits (pay devise a worse system if one tried. level of administration. With more the taxes) to cover the costs. There But, you can boil it down to two es- than 1,000 elected township officials is no overall financial manager to look sential elements: (1) the assessments; involved in the process, there is no at priorities or attempt to balance the and (2) the spending. While there way to achieve the court-ordered and books or smooth out cash flow. may be several desirable short-term constitutionally mandated uniform and But, wait a minute, you say, steps, such as Gov. Daniels ordering equitable taxation of property. The we elect mayors and governors and reassessments in suspect counties, system is FUBAR (if I need to translate city councils and state lawmakers and any long-term solution must focus on this last acronym for you, then you school boards and township boards these two root elements. haven’t received your property tax bill and county commissioners to mind The problems have grown, yet – which also sort of proves my the store – they must be account- the roots have been exposed and the point). able. Yes, but the problem is you do needed changes have become more The other fundamental elect all of these officials, they do all obvious. The measures that need to flaw in the system is the method and have a role in this mess and you can’t be taken have been identified, but not structure of local government financ- name three of them, I’d wager (if you acted upon. ing that encourages waste, duplication can, double-or-nothing that you can’t Let’s start with assessments. and increased government spending name a fourth, especially from the The glaring inequities and inconsisten- with little or no accountability. That township or school board level). The cies are the product of an assessment means higher and higher taxes for us system encourages the units to simply system in desperate need of streamlin- all and brings us to today’s crisis. point to one of their colleagues when ing and modernization. The Supreme More than 2,400 units of local the account is overdrawn. Taxpayers Court confirmed the problem almost government across the state, includ- are left paying the tab and nobody is a decade ago, but the antiquated ing school corporations, act completely held effectively responsible – at least structure has frustrated the required independently of each other as they taxpayers have no easy means of Page 3 Thursday, Sept. 20, 2007 figuring out whom they should hold accountable (the latest and too many taxing authorities making too many unco- campaign ad of Mayor Bart “Not Me” Peterson is a good ordinated spending decisions with too little accountability example of how the system allows the chief executive of must be addressed. the state’s largest city to artfully dodge any responsibility). Property owners deserve accurate assessments. Reason dictates that some coordination or consoli- Taxpayers deserve to know who and what has caused their dation of the taxing authorities and/or their budget-making taxes to increase. A sound assessment process combined is needed. More accountability – through fewer jurisdictions with more accountable and transparent budget-making will with greater authority – must be built into the system. put control of the system back in the hands of the taxpay- The present crisis provides a great opportunity to ers. Opponents of meaningful change and the temptation take the reasonable steps that the system itself has defeat- to simply meddle here and there must be overcome. The ed in the past. Real reform will require tough and unpopu- pitchforks are out, but this is no time to panic. v lar actions, political courage and, above all, a determination Carter is a vice president with the Indiana Chamber to change. The root problems of the assessment process of Commerce. Anti-incumbency: From page 1 for Henry, how could Kelty still be in the game? “There is an intense antiestablishment sentiment out there,” said Al- cratic circles that Schellinger was the favored candidate of len County Republican Chairman Steve Shine. prominent party power circles (See Horse Race for more analysis). Congress Approval at 11% A Republican source tells HPR that a number of re- A Zogby Poll released on Wednesday reveals that spondents in party fundraising phone calls say they plan to the approval rating for Congress stands at an astoundingly vote against incumbents - both Republican and Democrat.