Essay # 1

Government of, by and for the People

Hoosiers in Marion County were among the first in the State to receive their 2007 tax bills.  They now understand first hand the effect of the “perfect storm” in local government finance (that is, what happens when real estate tending, elimination of inventory tax, and the 2% cap on real estate taxes are realized simultaneously).  The rest of us will come to the same realization and feel the same pain when we receive our tax bills later this year (many of us will be forced to choose between paying taxes or purchasing Christmas presents).

Our State legislature saw the storm coming during their last session and attempted to buffer its effects by offering tax credits issued in the form of rebates.   Their apparent goal was to confine tax bill increases to single digits.  The “early returns” suggest that did not occur.  We should not be surprised; it was practically impossible for the legislature to succeed given the information available at the time.  The system is a tangled web of taxing authorities, mandates, credits, caps, abatements, assessments, levies and host of other factors which affect the average citizen’s tax bill.  Like the game “whack a mole” sure as you hammer down one target another one pops up.

So what IS the solution?  Increasing sales taxes & income taxes while decreasing real estate taxes?  Increasing homestead tax credits?  Reducing or eliminating unfunded court ordered or legislative mandates?  Expanding gaming?  Increasing incentives to business to stimulate the State economy?  Selling or leasing more State and County assets?  Increasing outsourcing? Increasing the tax cap? Expanding moratoriums on public construction?  Restructuring local government? Altering citizen expectations and demands of their government? Reducing government services? Some, none, or all of the above?  Something else?

Our natural first reaction in crisis is to begin the “blame game” and engage in finger pointing.  While this practice may make us feel better, it is counter-productive and offers little in terms of meaningful, lasting solutions.  Finger pointing puts people on the defensive and stifles open, honest discussion and serious debate.  Such discussion and debate is essential to crafting a solution. We got ourselves into this mess, and together we’re going to need to work our way out.

I think many, if not most agree that our present system is broken.  The cost to preserve the present system translates into higher taxes, less-than-acceptable service, and complex government that few tax-paying citizens dare to understand.  We’re paying for programs, policies, procedures and patronage that have grown to become ineffective, incomprehensible and obviously expensive.  

In his weekly column Rich James chose to share one example from many in our ongoing discussions about what it’s going to take to fix our tax problems once and for all.  While we may disagree on its form, we do agree that in the absence of meaningful restructuring of local governance, a lasting solution to our tax crisis is practically impossible.  It is no longer possible to fix anything by simply “tweaking” a system which never contemplated the challenges presented by 21^st century realities.

Our present approach includes commissioning studies and assembling blue ribbon panels to consider the problem and craft solutions.  But as we learned from the Maximus study in Lake County, that approach while commendable is only a beginning.  But if the people and their duly elected representatives are not central to the process where will the resolve to make meaningful, lasting change come from?  At some point the people have to take ownership. It cannot be a good idea until it is OUR idea. Our founding fathers understood this.  The government which serves it citizens is that government which is of, by and for the people.

Our present crisis while dire provides the opportunity for necessary change.  Inspired leadership, engaged citizens and an open process will be required if we are to confront the crisis and emerge renewed & revitalized.

As Americans and Hoosiers, we have a proven track record of crafting innovative solutions to serious problems.  Once again we need to muster the courage and determination to not just think “out of the box,” but off the page.  It’s not just our responsibility, it’s our legacy.