New law reshapes government construction game

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BY PATRICK GUINANE
pguinane@nwitimes.com
317.637.9078 | Sunday, August 10, 2008 | (2 comment(s))

INDIANAPOLIS | Local officials typically boast of strong community support whenever they move forward with a new library, school or other construction project saddling taxpayers with decades of debt.

Now they have to prove that support at the polls.

The Indiana General Assembly set a higher bar for public support as of July 1. New projects, including most school buildings, now will be routed to referendum if at least 100 local taxpayers or voters sign a petition in opposition to such proposals.

Republican lawmakers, including Gov. Mitch Daniels, led the charge to let voters directly decide the fate of expensive public projects. Democrats, echoing the concerns of education groups, unsuccessfully sought to exempt school classroom projects, arguing taxpayers might indiscriminately block needed improvements.

"I do not share the fear of some that Hoosiers cannot be trusted to weigh the pros and cons of big investments for which they will pay the costs," Daniels told lawmakers earlier this year. "I say, trust the people. Give them the facts, and let them decide."

Indiana's old system essentially pitted opponents and supporters of debt-financed construction projects against each other in a contest won by whichever side secured the most signatures. That petition and remonstrance process remains in place for projects that don't draw the 100 opposition signatures needed to trigger a referendum.

The new state law stipulates that construction referendum questions be placed on the ballot at the next regular election. If an election is more than six months away -- Indiana does not hold elections in 2009 -- the taxing body pushing the project can request a special election.

The law, part of the property tax overhaul approved this spring, also prohibits local officials from using government resources, such a staff time or a school copying machine, to promote or oppose a referendum. And local governments controlled by appointed boards, including library districts, now must get approval from city or county councils before moving ahead with construction projects.

REFERENDA REQUIRED

By gathering at least 100 signatures in opposition, taxpayers can trigger ballot referendums to decide the fate of local construction projects that exceed:

$10 million for elementary and middle school classroom projects*
$20 million for high school classroom projects*
$12 million for municipal, county or township projects and non-instructional school projects, such as athletic fields*

*For smaller taxing bodies, the threshold is the figures above or an amount equal to 1 percent of the local tax base (assessed value), whichever is lower. Projects below the thresholds are subject to petition and remonstrance.

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Libraryreferendum SS extensionNO referendum wrote on Aug 10, 2008 8:39 AM:

" Gee, what costs MORE MONEY coming from the taxpayers? Hmmm. I dunno....
Why don't we "sell" the whole SS expansion idea to China, have them "buy in" on the whole package, since they own 1/2 of our failing nations debt and it dosent cost us taxpayers one penny. That way some governor later on dosent have to sell it like the toll road to balance the budget. "

SOLUTION wrote on Aug 10, 2008 8:07 AM:

" The best news in decades. It is about time to reel in the school (construction) boards. These boards are staffed with retired or active teachers who just love to spend taxpayers money. I remember one investor banker who had recently moved to Crown Point from Chicago and was elected to the Crown Point school board when the issue of a new high school was being fought. He said he would pay the taxes of anyone who couldn't afford the increase. Well. he no longer lives in Crown Point. He moved out soon after the high school project got approved, saddling all of the present residents with $60 million in debt. "

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