25. March 2008 by Greg Kelver.

Michigan Township is on flames and Rep. Scott Pelath could have taken the politically easy path and voted for HB 1001 - the so-called property tax reform bill.  Likewise, Jim Arnold, Ryan Dvorak, and Craig Fry could have also taken the easy street.  But they didn’t.  Instead, these Northern Indiana legislators had enough courage to break ranks from the bi-partisan legislative lovefest and voted against it. It was refreshing to see some local legislators pulling back the curtain to take a closer look at what they were voting on and deciding that No-Deal was preferable to Bad-Deal.

But I  really appreciated the viewpoint column that Rep. Pelath had in the News-Dispatch on Mar 15

 http://thenewsdispatch.com/main.asp?SectionID=50&SubSectionID=118&ArticleID=10980&TM=24104.28

Often, about all we hear on key issues from a legislator is a couple of edited sentences or a nine second  radio clip, usually supporting whatever position the Old Party leadership has chosen to pursue.  But Pelath’s viewpoint nailed many legitimate concerns about the ”property tax reform” that was just signed into law. 

I think that Rep Pelath is right that -

• HB 1001 doesn’t provide long-term substantial relief. 
• In many ways HB 1001 will make the problems even worse
• HB 1001 will cut property taxes for some while driving them up on others
• HB 1001 certainly does not live up to the definition of permanent relief
• HB 1001 resulted in a substantial hike in the state sales tax as well as potential increases in local option taxes
• There is a very good chance that the increases in sales and income taxes will be greater than the savings in property taxes for many working families, seniors, and renters
• The national economy is slowing.  Like the income of many Hoosier Taxpayers, state revenues are behind projections and it has not met recent revenue targets.
• Legislators have touted many programs as “the answer” to Indiana’s property tax relief crisis only to have to return a few years later with yet another “answer.” 
•  HB 1001 was not the answer and legislators will be addressing property taxes again in very short order

However, where I think Rep Pelath is seriously off the mark with his analysis is about the revenue caps that the bill put on local schools and government. 

 http://thenewsdispatch.com/main.asp?SectionID=1&subsectionID=1&articleID=11266

  For far too long, schools have been given a blank check on school construction projects.  Taj Mahals have been erected at taxpayer expense that do little to improve the quality of education but do a lot to fatten wallets of architects, lawyers, bankers,  and other consultants connected to the bonding and construction of school buildings.  Similarly, many local government have been very wasteful with the taxpayer’s money but always manage to hide behind cutting police and fire protection whenever their wasteful ways are questioned. Although Indiana’s Constitution was supposed to limit government debt to 2% of Assessed Value, our elected ”public servants” creatively figured out how to get around that little constitutional problem and have taken local debt to outrageous levels

 http://www.wndu.com/localnews/headlines/16763711.html

 Unfortunately the DLGF has been AWOL for years while the local spending was ramped up but to Governor Daniels’ credit, he has at least been trying to do something about out-of-control school construction costs.

There were a lot of good ideas that were originally contained in HB 1001 - many ideas were similar to suggestions that the Libertarian Party of Indiana previously had in the Tax Plan it offered to state legislators in December 2001 before the last “property tax reform.”  But with HB1001, those good ideas are missing some key components that would have made them actually work well, kind of like building a great automobile body but taking the engine out of the final product.  While it may look spectacular on the outside,  it is not going to get anybody where they need to go.

Appropriately starting on April Fool’s Day, Indiana Taxpayers will begin to see that the “property tax cut” legislators are now touting will magically morph into a tax hike to those who pay the bills. Perhaps someday very soon, voters will see that Governor Daniels, Speaker Bauer  and the bi-partisan coalition of legislators who took aim at the property tax disaster with HB1001 hit their target about as well as Dick Cheney hits a duck. They got their shot off at the last minute but nobody is going to be very happy with what their buckshot actually hits.  While it may not be fatal,  it certainly is going to be as irritating as Hell for those getting hit.

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23. March 2008 by Greg Kelver.

It is always nice to see sensible economic development and the LaPorte County Herald Argus nicely summed it up in their editorial welcoming Xenerga/Indiana Flex Fuels to LaPorte County.

http://www.heraldargus.com/main.asp?FromHome=1&TypeID=1&ArticleID=2971&SectionID=8&SubSectionID=9

Unlike some of the supersized development proposals being hyped for Union Mills,  there is a lot to like about what Xenerga/ Indiana Flex Fuels is doing:

• It is an obviously green company that helps to reduce dependence on foreign fossil fuels while offering an opportunity to recycle a waste product for beneficial reuse.
• It has chosen to locate in an area that is prime for industrial development (Kingsbury Industrial Park) and already has infrastructure in place instead of requiring a large greenfield site that is being used for agricultural production. As Mr. Zeedyk pointed out, LaPorte County already offers the rails, roads, and feedstocks - everything they need to build a successful business.
• Instead of a huge plant with the problems that can accompany it, Indiana Flex Fuels is starting with relatively small facility that can be an excellent example of the benefits of Micro-Manufacturing. The Herald Argus editorial pointed out that Xenerga CEO Jason Sayers explains on the firm’s Web site www.xenerga.com :

“Many of the plants being built today are (large) plants that require a huge investment and have complicated logistics. We’ve taken a different view. We’ve cut out the logistical problems, and we distribute the biodiesel locally without a lot of the distribution costs.” 

 That is exactly the kind of smart, sensible development that LaPorte County needs to build a healthy, economically sustainable future.

As long as they can properly contain any odors or emissions that may be associated with their process, Indiana Flex Fuel could very well serve as the model for the type of future economic development that should occur in LaPorte County.  As a small business owner who makes energy efficient heating equipment that can utilize the product that Indiana Flex Fuel will offer, it is genuinely exciting to see this type of WIN-WIN-WIN development happening here.

Welcome to LaPorte County Mr. Zeedyk and Indiana Flex Fuels!  Thank you for choosing to grow your business here and making LaPorte County the first of many successful operations that Xenerga has planned.

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21. March 2008 by Greg Kelver.

In signing HEA 1153 into law, Governor Mitch Daniels said

“Hoosiers believe in freedom, but also in personal responsibility in the exercise of our liberties, … I sign this bill with misgivings and caution, and the hope that any Hoosiers who choose to risk their money in these games will do so responsibly and with extreme care.” 

 http://www.indystar.com/apps/pbcs.dll/article?AID=/20080320/LOCAL1901/803200470

It is very refreshing to see that Governor Daniels got this one exactly right. The law legalizes pull tabs, punch boards, tip boards, and daily drawings in Indiana bars and taverns with restrictions.  It is a sensible law that not only helps Indiana small business but also will generate some additional tax revenue from cash-based activities that previously generated none.

According to a summary of the bill from the Indiana Licensed Beverage Association, 

-sales can begin on July 1^st, 2008

-sales restricted to bar areas where minors are not allowed

 

-anyone planning to sell these games will need to first apply for a $250 retailer endorsement to go on their liquor license

 

-licensing will be administered by the Alcohol & Tobacco Commission

 

-games must be purchased from a licensed distributor

 

-all excise taxes will be collected by the distributor at the time of purchase

 

-daily drawings must be a 100% payout with a to-be-determined cap on the amount of winnings (probably $300)

In my opinion, this legislation is a pretty good example of some common sense legislation that is actually a win for Indiana small business, a win for Indiana government, and a win for grownup individuals who believe that they should have the right to run their own lives without undue meddling by others, especially government agents or hypocritical busybodies.

It was also encouraging to see that two legislators from LaPorte County, State Representative Tom Dermody and State Senator Jim Arnold, were supportive of this legislation.  This bill does represent good government that properly balances the interests of individual citizens with an appropriate oversight role for government.  Thanks to all for getting this one right.  

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17. March 2008 by Greg Kelver.

The ethics charge that County Attorney Shaw Friedman filed against the former DLGF employee who talked to Taxpayer Bill Wendt is looking more ridiculous by the day.  But the decision by Judge Steven King to dismiss the lawsuit against County Assessor Carol McDaniel and the Nexus Group  http://thenewsdispatch.com/main.asp?SectionID=1&SubSectionID=1&ArticleID=10941&TM=33496.67 

because the lawsuit wasn’t filed within 30 days is further proof of just how outrageously abusive our elected officials at all levels have become toward those they are supposed to serve.

Michigan Township Residents for Fair Taxes Inc. had filed the lawsuit because of their belief that the over 1 million dollar no-bid contract between LaPorte County and the Nexus Group was not properly executed.  Based on how the County Assessor and the County Attorney have been running this Three Ring LaPorte County Assessment Sideshow, I would tend to believe that the Michigan Township Taxpayers had this one right too. But unfortunately, the judicial branch of  Indiana government is just as messed up as the legislative and executive branches are. 

Judge King undoubtedly was technically correct in his decision, but that decision highlights yet another example of where “legally OK” splits sharply from what is “ethically right”.  Many reasonable men and women undoubtedly believe that if the  contract was improperly awarded, then those who were responsible for, and benefited from, an improper award should be held accountable.  Government often takes years before it goes after an improper action or conduct by a citizen.  So  3o days for citizens to take corrective action against government certainly does not seem to be a reasonable amount of time - especially if expensive legal action will be required by individual citizens to correct it.

 Attorney Friedman, Assessor McDaniel, and the LaPorte County Commissioners are compensated by the taxpayers to perform certain tasks.  It is their job to know and understand the governmental imposed rules they are supposed to operate under. Awarding million dollar governmental contracts without seeking open and competitive bids is an area that is ripe for potential abuse and corruption.  But apparently some in government fail to see any ”ethical” problem with that kind of action.

“Extreme prejudice to the county and township assessors, as well as La Porte County government and its taxpayers would result in the form of the huge financial cost should (Nexus’ work) be undone and the county and local government be required to repeat those massive exercises” should not have been a factor in Judge King’s ruling. But doing what is both legally AND ethically right for the citizens of LaPorte County should have been. 

There is still one more chance that government could do the right thing for LaPorte County Taxpayers.  A few days ago the DLGF came to town and listened to 2-1/2 hours of testimony from property taxpayers who are suffering because of local abuse and incompetence    http://thenewsdispatch.com/main.asp?SectionID=1&SubSectionID=1&ArticleID=10704

Professionals who are representing taxpayer interests seem to be 99.9% certain that “Sales Chasing” has taken place in LaPorte County. On the block where I live, I think those odds go to 100%.  The DLGF has an obligation to insure that the assessment of property tax is UNIFORM and EQUAL. The evidence seems to be pretty strong that is not the case for LaPorte County. 

 The DLGF should do the right thing now by ordering the complete reassessment of LaPorte County, but cost or inconvenience to local government officials should not make one bit of difference in their decision on whether a reassessment should be ordered.  Government has only itself to blame for the mess it has created and it is long past time for citizens to put it back on a leash and start holding it accountable.  Clean it up! 

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15. March 2008 by Greg Kelver.

After watching the just concluded legislative lovefest, I think I finally understand what just happened in Indianapolis

http://www.youtube.com/watch?v=UJZvMX283u4&feature=related

It is just too bad that Hoosier Taxpayers will once again be the ones who will get kicked in the groin by  the assophants. 

Posted in Politics | 2 Comments »

9. March 2008 by Greg Kelver.

Bob Hull is a man who understands what economic development is really all about.  As a long time LaPorte County businessman, he fully understands how jobs are created and how paychecks get signed. Last week, Mr. Hull spoke at the Intermodal Task Farce meeting on behalf of SISOC (Stop Intermodal- Save Our County) http://thenewsdispatch.com/main.asp?SectionID=1&SubSectionID=1&ArticleID=10659&TM=18887.47. Hopefully some of the members were paying attention to what he had to say. Some well reasoned comments by Bob Boklund during the meeting do give encouragement that some members are finally starting to ask the right questions and do the right research. 

For the 15 minutes he was allowed, Mr. Hull made some very valid points that must be considered as he pointed out there are some very serious potential drawbacks that can accompany an intermodal. He spoke about the elimination of highly productive cropland and the disruption to farm families. Potential air and water pollution issues including possible damage to the underground aquifer from highly concentrated truck and train traffic.  He hit on reusing existing buildings before wastefully building new.  He questioned the cost of infrastructure and who pays for it.  Container security and dumping of foreign goods were also concerns that were brought up.

But Mr. Hull really nailed the key underlying issue about the intermodal when he made a point about the difference between “Economic Development” and “ECONOMIC PROSPERITY”. No matter how much the Economic Development gurus want to blur that line, those terms are NOT the same and they should not be interchanged or confused. Everybody knows that the U.S., Indiana, and LaPorte County are facing severe economic challenges. Self-serving politicians want to offer an illusion of an “economic development” quick fix. But like substance abuse that may offer a short term high, development just for the sake of development is not really good for long term health . The underlying economic prosperity problem is complex and very deeply rooted - it will not be fixed by politicians who will not or can not tell people the simple truth about a complex global problem. An intermodal development certainly would offer jobs to some and power to others, but it will not lead to “economic prosperity” for current LaPorte County residents. It damn sure certain will not improve the quality of life for those who suddenly find themselves living next to it.  Perhaps the developers, investors and politicians (including Their Man Mitch-Morris) who are now pushing the intermodal should be forced to sign a legally binding agreement that they will live next to their supersized train yard for the next 22 years of THEIR lives. Mi Propio Jardin es Su Propio Jardin.

While I appreciated the comments that Mr. Hull made, I was deeply troubled by some comments that were made by Task Farce Chairman Dave Christian.  Mr. Christian implied that if we don’t do anything, there could be a negative impact on property taxes and taxpayers could find themselves paying more. However, I think Mr Christian and others who are pushing the intermodal as a pathway to “lower taxes” are flat out wrong. The type of “development” that occurs in cities inevitably leads to HIGHER taxes, not lower taxes. In fact, changing from agricultural farmland to any other type of development will INCREASE the property tax burden, not reduce it. 

As a Libertarian, please let the record show that I am NOT a fan of land use “planning” as done by government.  But according to the The Cost of Community Services Study (COCS)  http://www.duncanplan.com/laporte/documents/COCS_finalreport_05-31-07.pdf

a very key and important point is made -

“among the agricultural, industrial, and commercial land
uses, agricultural land uses subsidize community services to the greatest extent.”  

Furthermore, the COCS may be used to:

• “Demonstrate that the lure of residential development and increases from its associated assessed valuation in certain areas of LaPorte County will result in increased expenditures from a demand for public services greater than tax revenues generated, unless balanced growth (from commercial, industrial and agricultural/open lands) is implemented through sustainable development policies or other planned growth strategies (such as Smart Growth planning).”

• “A guide to balance future residential land use development with future commercial and industrial land use development, in order to retain viable agricultural and open ands for the long-term economic health of LaPorte County and its individual taxing units – neutralize, as best possible, the tax implications of land use development and consumption.” 

• “Understand that agricultural/open lands are viable economic land uses and that they should not be considered “undeveloped” for planning purposes. Agricultural/open land preservation in LaPorte County should be encouraged as a planning mechanism or sustainable development strategy to reduce the COCS impacts of residential development for a balance of land use development and consumption.”

LaPorte government at all levels loves to spend a lot of taxpayer money on “studies.”  But perhaps some of our elected officials and their appointed economic development gurus should actually read those studies that they force taxpayers to pay for. Before the Intermodal Task Farce takes it’s tour of the Union Mills farmground on April 2, every member should do their homework and read the COCS. Perhaps some may then be able to better understand that green cornfields and fertile ground for the future development of Micro-Manufacturing can lead to sustainable economic prosperity for LaPorte County in ways that tax-abated warehouses full of Made in China trinkets simply won’t.
 

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2. March 2008 by Greg Kelver.

Many people in Union Mills are deeply troubled by the impact of the supersized trainyard that is bearing down full speed on rural LaPorte County.  They also understand that the LaPorte County Intermodal Task Farce is primarily a political manipulation designed to give cover to some politicians in the upcoming election.  While attempting to maintain an “unbiased” appearance, there is little doubt that the makeup of the Task Farce is carefully designed to allow it to serve as the head cheerleader and chief propagandist for at-any-cost “economic development.”

Unfortunately, some of the local media reports about the recent trip to Elwood also seemed to be pretty heavily biased in favor of  the intermodal development.  But some others who were also on the trip took off the rose-colored glasses for a better view of the proposed development.   Kathy Malstaff-Brew was a participant on the February 20th Intermodal Task Force trip to Elwood.  She has written her viewpoint of the Task Force Trip that I think is well worth a read - Brews Views  

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