Saturday, May 17, 2008
State Repays Local Governments
Gov. Mitch Daniels announced yesterday that the state will now pay off the hundreds of millions of dollars in debt once owed by the state to local governments. He says the remaining $212 million owed to local governments is being paid back ahead of schedule, which includes a $30.5 million payment to Marion County. It is worth noting that this problem was inherited by Daniels when he became governor in 2005. Prior Democratic administrations held up payments to local governments as a means of balancing the state's budget, putting additional pressure on local governments to raise taxes and borrow more funds for operations. Daniels promised to end this practice in his first state of the state address.