Indy Mayor Supports "Circuit Breaker" Property Tax Cut

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(STATEHOUSE) - A proposed property-tax “circuit breaker” would shave millions off taxpayers’ bills, but it would also shave local budgets by about five-percent.

Even with the prospective loss of $40-or-50-million dollars to an already strapped budget, Indianapolis Mayor Greg Ballard is supporting the circuit breaker, calling it "tough in the short term but wise in the long term."

"It is the unpredictability of the current system that not only scares the people, but also makes it difficult for municipalities to forecast their revenues and expenses," Ballard told a House committee.

Ballard says Indy needs the state to help in return, by completing the merger of township fire departments and lending a hand with police and fire pensions. Ballard declared "everything is on the table" in terms of possible spending cuts, though he said he'd almost certainly draw the line at any cuts in police spending. He declined to be more specific, repeatedly noting he's been in office only five weeks.

Officials from other cities say they'll make the necessary cuts somehow, but complain they held the line on taxes and spending and are getting penalized anyway.

Columbus Mayor Fred Armstrong says the state's encouragement to use local option income taxes to make up the lost cash isn't enough, because in most of the state, that decision rests with county councils. Armstrong says he'd like cities to have the same option within their borders, in cases like his where the county is reluctant to approve the tax.

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