As we work to keep Indiana moving forward, Northwest Indiana is always on my mind. We've taken a number of steps to enhance the growth potential of the region, and more is within our reach if we work together to challenge old assumptions and the status quo.
Last year we took a big step forward with our property tax relief plan. Our bipartisan achievement is making a positive impact for property taxpayers all over the state, but nowhere more than Lake, Porter and LaPorte counties.
When it is fully implemented, our plan to cut and cap property taxes will provide more than $290 million in tax relief for Northwest Indiana. On average, homeowners in Lake, LaPorte, and Porter counties will receive a 36 percent cut in their property tax bill -- some East Chicago and Gary residents will see cuts of 75 percent.
Nowhere are property tax caps more important in providing relief than in Lake County, which has some of the highest property tax rates in the state. Many taxpayers pay well in excess of 1 percent of their home's assessed value, even after the 2008 reductions. Our bill will give citizens a second big tax cut when the caps take full effect.
The caps also are generating some much needed discussion about local government efficiency because the caps will force the most spendthrift local units to make do with fewer taxpayer dollars. In Lake County particularly, that discussion is years overdue.
More than most Hoosier taxpayers, those in Northwest Indiana are saddled with the burden of supporting multiple layers of local government. Lake County has more than 84 units with the authority to levy property taxes; LaPorte County has 52 and Porter County has 42.
With the glut of local government units, Northwest Indiana residents are not receiving services in the most effective and efficient manner. LaPorte County has 21 townships, more than any other county in the state. Fourteen of these townships receive fewer than 20 requests for poor relief each year.
Eighteen townships hold more than 10 percent of their total spending in cash reserves -- seven of them have stashed away enough cash to run their operations for at least a full year without levying any additional property taxes. But they will keep imposing those taxes anyway.
Around Indiana, many township trustees spend more on themselves than they distribute to the poor. Nepotism is rampant. One Lake County library spends more than $70 per item circulated -- the statewide average is under $6.
Northwest Indiana has 31 school districts, but six of them serve fewer than 1,000 students. One LaPorte County school district has 35 students, and they all attend classes in another district. Kids pay the price when districts struggle to offer advanced placement, math, science and languages. It's time to protect smaller schools, shrink our class sizes, and expand our course offerings by reducing the overhead of too many redundant administrators.
As someone mentions every time I am in Lake County, I have spent more time (65 trips and counting) and delivered more dollars (the Northwest Indiana Regional Development Authority, record highway spending, disaster funding, etc.) than any governor in memory. But it becomes impossible to make the case for more attention when the county's reputation for excess, cronyism and wrongdoing does not improve. For the friends of Lake County to be of more help, the people of Lake County must first help themselves by demanding real reform.
U.S. Rep. Pete Visclosky has said to maximize growth possibilities in Northwest Indiana "we need to ensure that we have the best and most efficient local government possible." The unfortunate duplication and balkanization in local government prevents the region from having a positive reputation or environment for jobs and growth. Business as usual is no longer acceptable, affordable or sustainable.
