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.

2 comments:

Mike Kole said...

This is good news. Kudos to Daniels- a man I don't often give kudos to. It's a good start. Now if we could start substantially cutting the budget, we'd really be getting somewhere in this state.

I'm glad the state income tax hasn't been raised, as Daniels suggested might be a good idea, in that same first state of the state address.

Joe said...

It's easy to take a few pot shots at the gov, but the truth is, this man has restored fiscal stability to the state budget -- the local govs, schools and higher education community should all be dancing in the street at how he has systematically restored their payments and money that was owed to them -- but they won't.