Friday, June 20, 2008

Daniels Advances State Funds To Local Governments

Gov. Mitch Daniels is sending out $620 million early to local governments statewide to assist them financially in flood and storm disaster assistance. These funds come from monies which the state is raising from the increased sales tax to pay for property tax relief. Marion County's share of the advance funds is nearly $100 million. Daniels explains his decision:

"As I traveled around the state, many mayors, town board presidents and other officials told me that the flooding has really caused them some cash problems. They have things they need to do in the near term. This is a way we can get $620 million of cash to the counties and then to the localities of the state so they don't have to borrow money to deal with the immediate needs," Daniels said.

Daniels' fiscal policies the past four years are a reversal of what they were for nearly 16 years under Democratic governors, who often withheld payments due to local governments to help balance the state's budget. That equated to borrowing from local governments and contributed to the problem of rising property taxes.

There's news today on the repairs at Columbus Regional Hospital, which was badly damaged due to flooding. There were erroneous reports earlier that the hospital would have to be rebuilt. Although that isn't the case, repairs will still cost nearly $125 million. Fortunately, the hospital just happened to have $130 million sitting in a savings account to pay for the repairs. Hmmm. The hospital hopes to reopen in August. All employees are being paid as if the hospital was fully operational.

1 comment:

M Theory said...

You know, there is money off the books in the Comprehensive Annual Financial Report (CAFR).

If you ever try to talk with a state or federal politician about it, they ignore you. Kind of like when you ask them about the Indiana Constitution Article 8 which authorizes property tax collection for schools to only come from corporations.