CROWN POINT | Lake County Council President Larry Blanchard said he is so upset regarding the continued push by some mayors for a local income tax that he is prepared to think of the unthinkable -- merging all 19 of its cities and towns into one governmental unit.
He said replacing the county's crazy quilt of political subdivisions with a single municipal group between Lake Michigan and the Kankakee River would save taxpayers tens of millions of dollars by eliminating needless government duplication and still provide essential services. Such plans often are dubbed unigov by proponents of the consolidation.
"If we are becoming that desperate -- and I understand some of these municipalities are -- then we need to see if there is support for some sort of consolidation in order to avoid passage of an income tax," Blanchard said.
Similar unigov proposals have been rejected in the past by Lake County municipal officials. Their reaction last week to Blanchard's suggestion ranged from rejection to amusement.
Hobart City Councilman Brian Rosenbaum laughed, "I think Larry is just throwing everyone a curve ball."
Merrillville Town Councilman Richard Hardaway said, "I think (County Council members) are looking to pass the buck. If they would do what they are supposed to do, which is be concerned about the citizens of Lake County and less concerned about being re-elected, then we could get out of this."
The General Assembly is denying Lake County officials more than $100 million in property tax revenues this year under laws providing tax relief to property owners and punishing the county for refusing to pass a local income tax by denying it an annual property tax increase to make up for inflation.
Gary Mayor Rudy Clay and other municipal officials said the resulting budget shortfalls are forcing layoffs and service cuts.
Whiting Mayor Robert Stahura has been lobbying state legislators to free up some of the money through new legislation to bypass the County Council. Stahura's plan would authorize cities and towns representing more than half the county's population to pass the income tax.
Stahura said Blanchard's suggestion is irrelevant to the current crisis.
"I'm not against efficiency. Unigov, even in Marion County where they are touting it, has a lot of flaws," said Stahura, referring to the form of government in place in the Indianapolis region.
Blanchard said he wouldn't expect his proposal to be popular.
"If worst comes to worst and these cities and towns start going belly up, we have to resort to drastic measures before we think about a tax," Blanchard said. "We need to save some real money and go all the way with government reform."
