Indiana

A Merger Moratorium

By Abdul Hakim-Shabazz

I hope you’re sitting down because you are not about to believe what you are about to read.

After January 1, the city of Indianapolis should cease all efforts to consolidate with anymore township fire departments.   I’ll give you a moment to catch your breath.

I know this may sound a little odd, especially since I have been a proponent of consolidation from day one.  I still believe that if done properly consolidating basic government functions like police and fire can yield efficiencies and savings.  However, there comes a time when you just have to call it a day.

My motivation doesn’t stem from a sense of defeat, but a sense of just wait and see.  Come January 1, the full weight of the property tax caps (1% for residential, 2% for rental, and 3% for commercial) fully kick in.  Throw in an increase in homestead exemption and local governments are going to lose millions in property tax revenue.  Let me rephrase that, homeowners and taxpayers are going to be able to keep millions of their own dollars.

This means that these townships in Marion County (Franklin, Lawrence, Pike, Warren and Decatur) are going to be looking for ways to find cash to operate.  While some have some reserves, you can only live off them for so long.  The only way these townships will be able to operate is to either engage in borrowing in perpetuity or make serious cuts in service.   By then, these guys  will be begging to consolidate and if I were Indianapolis proper, I would have no desire to pick up the bill and would let them collapse under their own weight.  Hey, they had five years to get right with Jesus, so it will be a little late to come looking for the Lord.

Enjoy it while you can guys, your days are so numbered.

Full post as published by Indiana Barrister on June 09, 2009 (boomark / email).