"I have instructed (the Department of Local Government Finance) to probe the unexplained disparity between residential and commercial reassessment in many counties, taking follow-up action if warranted. The state will not approve pending budget orders until commercial and industrial real estate assessments have been further analyzed. DLGF also will notify localities that upcoming budgets that spend above the rate of inflation will be rejected until spending is under control. Pending and future bond issuances also will be held in problem counties."
"I am also exploring some ideas with legislative leaders about how a special session might provide immediate relief directly to property taxpayers who have been especially hard hit.
"Looking ahead, some costs now borne locally, such as the child welfare levy, can be shifted to state government, never forgetting that the money all comes from the same taxpayers. The bottom line is there can be no solution without greater control of local spending and borrowing."
"As governor, I will take every step I have authority to take to help Hoosier homeowners."
Daniels statement, according to a Star report, notes that the legislature already subsidizes local government spending to the tune of $2 billion annually, or a quarter of the amount raised by property taxes. Further, the legislature awarded a half-billion in additional property tax relief this year. Although a new state law gives local governments flexibility to use local income taxes to reduce property taxes, the law has not been utilized to date. Instead, Mayor Bart Peterson and the Democratic-controlled city-county council in Indianapolis/Marion County are insisting on raising the local income tax 65% to fuel even more spending without providing a dime's worth of property tax relief.