Bill that would limit Cal Township spending moves to House
By Chelsea Schneider Kirk cschneider@post-trib.com February 14, 2012 4:54PM
Updated: March 16, 2012 8:17AM
A state senator attempting to give Griffith relief from Calumet Township taxes said Tuesday he’s still trying to achieve that goal.
State Sen. Brandt Hershman, R-Buck Creek, said the relationship between the two governments “is a deeply significant problem that needs to be addressed,” but admitted there’s probably a better way to deal with the issue than what current legislation provides.
The bill limits the amount Calumet Township can spend on assistance to its needy residents to four and a half times the state average or around $63 per person. The Indiana Senate already approved the bill and moved the legislation to the Indiana House for review. A House committee heard testimony but did not vote on the bill Tuesday.
“I haven’t figured it out yet,” Hershman said, “but what I can tell you is the poor relief numbers are terribly skewed and it’s having a significant impact on the taxpayers of the town of Griffith.”
As the bill is written, other governments would likely see the majority of the money from a potential spending cap on Calumet Township, Hershman said.
“There appears to be a levy chasing problem in Lake County with each unit maximizing its levy to ensure if they did any cuts the relief would not flow through to the taxpayer but would flow in terms of additional spending authority to another unit of government,” Hershman said. “Just because everybody is behaving badly doesn’t make it a good thing.”
Initial data by the Department of Local Government Finance placed the township’s spending at $143.67 per person, though township officials argue actual spending is approximately $44 per person because the state’s number factored in money the township used to pay off tax anticipation loans.
Griffith Town Council members asked lawmakers for help from what town residents pay into Calumet Township claiming the tax rate is unfair and far exceeds the state average.
Meanwhile, Calumet Township Trustee Mary Elgin argues a cap would close the township’s doors by 2015 and not provide direct relief to property taxpayers.
“(The bill) does not provide tax relief for the residents or taxpayers in the town of Griffith or citizens of Calumet Township,” Elgin said. “The dollars will not have an impact on the tax reduction for the town of Griffith.”
Griffith Town Councilman Rick Ryfa estimates the town would receive more than $200,000 back and that some property owners would see relief as well.
Ryfa said he’s working with House members to increase the legislation’s benefit to Griffith homeowners.
“We’re crossing our fingers,” Ryfa said. “It would be a tremendous victory as is.”
Opponents of the legislation want lawmakers to step away from the issue and allow a local solution.
Yet a proponent of the spending limit, state Rep. Mara Candelaria Reardon, D-Munster, said the issue has come to a stalemate.
“It’s an ongoing issue,” Candelaria Reardon said, “so I think perhaps legislative authority is the only way to move forward.”
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