It looks like the LOIT (local option income tax) may not be the only tool in the belt for resolving deficit issues in St Joseph County. Rep. David Wolkins (R-La Grange) has authored a bill (HB 1031) that would allow certain local governments in the state to enact a 1% LOGRT (local option gross retail tax). The bill is being sent to committee next week, and would give municipalities designated by the Indiana Office of Tourism as "outstanding Indiana tourist destinations", the ability to levy up to a 1% excise tax on all products currently paying a retail tax.
There have not been any concrete economic feasabilty studies done yet to see what kind of revenue could be generated for governments in St Joe County, but it will definitely be able help to off-set at least some of the large deficits we have. A consumption or excise tax, such as this, would be a much easier tax to sell politically to cizitens of this county. A retail tax taxes only those who have the ability to purchase, while those who are trying to save money are not affected. The greater your ability to spend, the greater contribution you pay -- the more of your money you save or use for bills or groceries, the less contribution you make.
The problem many taxpayers have with the LOIT is that it taxes everyones income the same percentage. In that scenario, families which are struggling paycheck-to-paycheck to get by would be unfairly taxed. If the bill is passed into law, the local goverments would then have to decide if this is tax would even be beneficial enough to enact. Crowe and/or Umbaugh accounting firms would be hired to figure out how much revenue would be create versus the burden on taxpayers. The decision to enact such an ordinance would have to come from the local councils.
Saturday, January 31, 2009
Thursday, January 29, 2009
OPINION: The New Economy of Innovation, Communication and Transportation
Global experts are stressing that as the United States and global economies emerge from these trying financial times within the next 4 to 8 years, it will be entering into an entirely new economy altogether. The economy we have now is based primarily on 'profits and growth'. This has accounted for an outrageous portion of our economy to be built around financial markets, housing markets, and land use development. Sub-economies upon sub-economies upon countless of sub-economies have been built around these foundation economies to get us where we are today. These economies have provided our country and other portions of the world with unparalleled standards of living, technological inovations, and supporting revenue that has allowed governments to maintain vital infrastructure improvements.
The premise for these economic machinations have been around for centuries -- each generation adding more diversity to the global economic portfolio. There have been many game-changers throughout history that guided our global economies (for better, or worse) to where we are today: advent of gunpowder, the Mongol hordes, the industrial revolution, European discovery of the New World. Right now, we are at the end of an era, whose beginnings were marked by the Great Depression and World War II. Rather than look at these instances as beginnings, however, it would be more prudent to see these events as transitions in our economic landscapes.
If the period of financial crisis we are in right now does not represent one of those transitions, then it at least represents a significant mile-marker. As a newer world economy starts to take shape almost a decade from now, it will have shed some of its tendancies of the financial sector growth and profit speculation. Things such as Innovation, Communication, and to a smaller extent Transportation will be added to supplement our global economic portfolio.
Don't believe it? Let's put it into a little better perspective. The use of computers and the internet has represented a very significant mile-maker to the human experience. But so far, has mostly expanded to the extent that it has greatly bolstered our financial sector by the exponential growth of newer markets. The world still pretty much looks the same...yeah, we have quicker access to information, but we still keep talking about the "still undiscovered potential of the internet". This is because it is being held back in a sense that it can only grow so far as its ability to generate profits allow it to. There is evidence to this during the dot.com boom of the 90's. While we abviously have more content now, there isn't as diverse of uses as there was then. Before the dot.com boom burst, there were all sorts of cool free things: free computer phone calling, 24-hour neighborhood or urban surveillance systems, and tons of other cool things long forgotten.
Transportation is another example of stunted growth by our economy: we still drive cars with combustion engines. period. Not only that, but the vehicles still all use antiquated mostly analog devices such as foot pedals, turn key ignition, etc. Nothing has really changed much in the past 80 or so years since mass production started. We still use the exact same nasty polluting energy source that we drudge out of the ground to operate them. This is a far cry from the innovative human spirit that had children growing up back in the 1950's doodling pictures of flying cars in their school books.
The focus of the new economy will have a much greater emphasis on innovation, communication, and transportation than what is currently the situation which our economy's main proprierter's like financials, profits and land development growth. It is hard from many people's fiscally conservative views to accept that fact that without market driven profits, there could be much innovation. In all actuallity, there will be MORE innovation this way. Innovation is currently merely a by-product of a market driven economy. Look at where all of the major intellectual developments have come from over the past 60 years -- government funded university studies, NASA, the military, world wide internet infrastructure, subsidation of alternative fuels...the harnessing of nuclear energy and the creation of the atomic bomb were all done in a government laboratory.
First published in 1951, the novel The Foundation by Issac Asimov envisioned a future with limitless energy through the use of nucleics (items and energy sources that use advanced forms of nuclear power). Coal and Oil, however, are treated as commodities in our financial system, thus an integral part of our economy. These industries have put pressure on governments to limit research in this field for fear of a financial meltdown. Nuclear energy is the cleanest and most efficient form of energy on the planet, yet provides only 15% of the world's electricity. Only through government subsidised or direct action can nuclear power be helped to realize its full potential, because the markets have fail us.
10 to 20 years from now the world's economies will be a vastly different landscape. Communities that emerge as succeses, will be the ones that collectively invested in the areas of Innovation (sustainable energy will be a huge driver for this), Communication, and Transportation.
The premise for these economic machinations have been around for centuries -- each generation adding more diversity to the global economic portfolio. There have been many game-changers throughout history that guided our global economies (for better, or worse) to where we are today: advent of gunpowder, the Mongol hordes, the industrial revolution, European discovery of the New World. Right now, we are at the end of an era, whose beginnings were marked by the Great Depression and World War II. Rather than look at these instances as beginnings, however, it would be more prudent to see these events as transitions in our economic landscapes.
If the period of financial crisis we are in right now does not represent one of those transitions, then it at least represents a significant mile-marker. As a newer world economy starts to take shape almost a decade from now, it will have shed some of its tendancies of the financial sector growth and profit speculation. Things such as Innovation, Communication, and to a smaller extent Transportation will be added to supplement our global economic portfolio.
Don't believe it? Let's put it into a little better perspective. The use of computers and the internet has represented a very significant mile-maker to the human experience. But so far, has mostly expanded to the extent that it has greatly bolstered our financial sector by the exponential growth of newer markets. The world still pretty much looks the same...yeah, we have quicker access to information, but we still keep talking about the "still undiscovered potential of the internet". This is because it is being held back in a sense that it can only grow so far as its ability to generate profits allow it to. There is evidence to this during the dot.com boom of the 90's. While we abviously have more content now, there isn't as diverse of uses as there was then. Before the dot.com boom burst, there were all sorts of cool free things: free computer phone calling, 24-hour neighborhood or urban surveillance systems, and tons of other cool things long forgotten.
Transportation is another example of stunted growth by our economy: we still drive cars with combustion engines. period. Not only that, but the vehicles still all use antiquated mostly analog devices such as foot pedals, turn key ignition, etc. Nothing has really changed much in the past 80 or so years since mass production started. We still use the exact same nasty polluting energy source that we drudge out of the ground to operate them. This is a far cry from the innovative human spirit that had children growing up back in the 1950's doodling pictures of flying cars in their school books.
The focus of the new economy will have a much greater emphasis on innovation, communication, and transportation than what is currently the situation which our economy's main proprierter's like financials, profits and land development growth. It is hard from many people's fiscally conservative views to accept that fact that without market driven profits, there could be much innovation. In all actuallity, there will be MORE innovation this way. Innovation is currently merely a by-product of a market driven economy. Look at where all of the major intellectual developments have come from over the past 60 years -- government funded university studies, NASA, the military, world wide internet infrastructure, subsidation of alternative fuels...the harnessing of nuclear energy and the creation of the atomic bomb were all done in a government laboratory.
First published in 1951, the novel The Foundation by Issac Asimov envisioned a future with limitless energy through the use of nucleics (items and energy sources that use advanced forms of nuclear power). Coal and Oil, however, are treated as commodities in our financial system, thus an integral part of our economy. These industries have put pressure on governments to limit research in this field for fear of a financial meltdown. Nuclear energy is the cleanest and most efficient form of energy on the planet, yet provides only 15% of the world's electricity. Only through government subsidised or direct action can nuclear power be helped to realize its full potential, because the markets have fail us.
10 to 20 years from now the world's economies will be a vastly different landscape. Communities that emerge as succeses, will be the ones that collectively invested in the areas of Innovation (sustainable energy will be a huge driver for this), Communication, and Transportation.
Sunday, January 25, 2009
How can Obama's stimulus package affect the South Bend region's budget woes?
As major deficits plague many local governments in the Greater South Bend region, what aspects of Obama's stimulus plan will help get us back on our feet? Most of the talk has been focused lately on the infrastructure improvements, but will that really help us here in South Bend?
Most of the city and county roads in our region are already paid for by the federal government. This comes about in either fully-funded or matching road grants. This means that any more infrastructure money will only serve the purpose of repairing more roads without actually freeing up any money for the municipality to fund other essential services such as police and fire protection, libraries, county health services, jails, justice system, etc.
There is one provision in Obama's rescue proposal that does not, however, get too much media attention: saving the jobs of the nation's police officers. This will be of great benefit to communities all over the country. As The Journal talked about in another article, most local government's budgets consist of over 80% police and fire protection. Most law enforcement jobs are paid directly out of the coffers of the city's or county's general fund as opposed to state or federal grant money.
This could result in keeping our police officers -- a vital taxpayer funded service -- while at the same time freeing up some much needed revenue for local goverments to pay down their huge deficits. As it stands now, governments in the Greater South Bend region are looking at cutting 400 to 500 government jobs and the possibilty of a 1% income tax increase.
Most of the city and county roads in our region are already paid for by the federal government. This comes about in either fully-funded or matching road grants. This means that any more infrastructure money will only serve the purpose of repairing more roads without actually freeing up any money for the municipality to fund other essential services such as police and fire protection, libraries, county health services, jails, justice system, etc.
There is one provision in Obama's rescue proposal that does not, however, get too much media attention: saving the jobs of the nation's police officers. This will be of great benefit to communities all over the country. As The Journal talked about in another article, most local government's budgets consist of over 80% police and fire protection. Most law enforcement jobs are paid directly out of the coffers of the city's or county's general fund as opposed to state or federal grant money.
This could result in keeping our police officers -- a vital taxpayer funded service -- while at the same time freeing up some much needed revenue for local goverments to pay down their huge deficits. As it stands now, governments in the Greater South Bend region are looking at cutting 400 to 500 government jobs and the possibilty of a 1% income tax increase.
Saturday, January 24, 2009
Ivy Tech to expand its South Bend Campus
Ivy Tech Community College - South Bend is currently in the process of buying property along the south side of Sample St between Michigan St and Fellows St near downtown South Bend. School officials are reporting that an over abundance of students is leaving them no choice but to turn away students from enrolling in many classes.
The community college's current building is located on South Michigan St behind the fire station on the east side of the street. Some opponents of the expansion claim that school would be taking up potentially valuable retail space along a main corridor of the city. Since the school is a non-profit, there would be no chance for the city to collect tax revenues either.
School officials insist that the area of proposed development will bring positive development to the area and will be welcomed by the all ready existing businesses such as Mossberg & Co and Ziker Cleaners. Along with the expansion will come more jobs which pay income taxes and the ability to educate more people in the community.
IVY Tech administrators believe that they can be of future service to coming nanotechnology industries that need to provide continuing education for their employees. The school already provides customized education like this for many area businesses, law enforcement agencies, trade organizations, and hospitals. Memorial hospital is a regular contractor with the college to provide continuing education to their nursing staff for things such as new developments in surgical technology.
The community college's current building is located on South Michigan St behind the fire station on the east side of the street. Some opponents of the expansion claim that school would be taking up potentially valuable retail space along a main corridor of the city. Since the school is a non-profit, there would be no chance for the city to collect tax revenues either.
School officials insist that the area of proposed development will bring positive development to the area and will be welcomed by the all ready existing businesses such as Mossberg & Co and Ziker Cleaners. Along with the expansion will come more jobs which pay income taxes and the ability to educate more people in the community.
IVY Tech administrators believe that they can be of future service to coming nanotechnology industries that need to provide continuing education for their employees. The school already provides customized education like this for many area businesses, law enforcement agencies, trade organizations, and hospitals. Memorial hospital is a regular contractor with the college to provide continuing education to their nursing staff for things such as new developments in surgical technology.
Tuesday, January 20, 2009
Saturday, January 17, 2009
Kostielney is the new 1st District County Commissioner
Former District B councilman Andy Kostielney has been voted in by the GOP to take Mark Dobson's old seat as county commissioner. He will be finishing out the next two years of Dobson's term, and if he wishes to seek reelection will have to run again in 2010.
Who is this guy? Will he be good for St Joseph County? The Journal is initially confused as to why anyone in their right mind would like to enter into the unappreciated and underpaid world of public service, but this guy may actually have a decent head on his shoulders.
As a former Republican county councilman, Andy voted in favor of the controversial Tondu Coal Gasification plant. One may think "of course, the republican wants to do whatever corporations tell him to do." This is not the case. Kostielney happens to be a big fan of the Democratic led and government exectuted Project Future. It was Project Futures recommendation and plan to allow Tondue to build an environmentally friendly plant in New Carlisle. The county council shot down the idea with a vote of 7-2. Tondu would have brought in at ;east $400 million immedeatly into the region.
Project Future -- a whole entire blog of its own -- was a well planned mission for the region that many in local government have been dismissive about. As a councilman, Andy fought to keep Project Future funded and keep its mission. Thats right, a Republican that believes in the responsibility of government to its taxpayers by working to attract economic development....Regan would be spinning in his grave.
Kostielney will be a welcome addition to the commissioners' office.
Who is this guy? Will he be good for St Joseph County? The Journal is initially confused as to why anyone in their right mind would like to enter into the unappreciated and underpaid world of public service, but this guy may actually have a decent head on his shoulders.
As a former Republican county councilman, Andy voted in favor of the controversial Tondu Coal Gasification plant. One may think "of course, the republican wants to do whatever corporations tell him to do." This is not the case. Kostielney happens to be a big fan of the Democratic led and government exectuted Project Future. It was Project Futures recommendation and plan to allow Tondue to build an environmentally friendly plant in New Carlisle. The county council shot down the idea with a vote of 7-2. Tondu would have brought in at ;east $400 million immedeatly into the region.
Project Future -- a whole entire blog of its own -- was a well planned mission for the region that many in local government have been dismissive about. As a councilman, Andy fought to keep Project Future funded and keep its mission. Thats right, a Republican that believes in the responsibility of government to its taxpayers by working to attract economic development....Regan would be spinning in his grave.
Kostielney will be a welcome addition to the commissioners' office.
Friday, January 16, 2009
Bill introduced to allow Major Moves funds to be used in more progressive manners
State Rep. Scott Pelath (D-Michigan City) has introduced some very forward thinking legislation to allow for Major Moves funds to be used for Public Mass Transportation. The current legistation on the books allows the money to be used only for roads, highways, and bridges.
House Bill 1273 addresses many concerns about the Toll Road legislation that was rushed through by Gov Mitch Daniels. At the time of the Republican led legislation, there was much concern from Democratic leaders that reserving funds only for roads was very short-sighted. Many Democrats believed that to much money was being spent year after year by both the state and local governments on roads. Not only are new roads expensive to build, but old roads are expensive to maintain.
Many ideas were thrown around such as the expansion of the South Shore, interurban transportation, or even high speed rail between South Bend and Indianapolis. Mitch Daniels, however, shot down every one of them. The arguments for use of the Major Moves funds for Public Mass Transportation are getting stronger. With prices of road construction materials rising -- in some cases quadrupling -- governments are not able to purchase anywhere near the same amount for a road anymore.
Still, there may be some Republican opposition to HB 1273. Stay tuned to The Journal for further updates from the 2009 legislative session.
House Bill 1273 addresses many concerns about the Toll Road legislation that was rushed through by Gov Mitch Daniels. At the time of the Republican led legislation, there was much concern from Democratic leaders that reserving funds only for roads was very short-sighted. Many Democrats believed that to much money was being spent year after year by both the state and local governments on roads. Not only are new roads expensive to build, but old roads are expensive to maintain.
Many ideas were thrown around such as the expansion of the South Shore, interurban transportation, or even high speed rail between South Bend and Indianapolis. Mitch Daniels, however, shot down every one of them. The arguments for use of the Major Moves funds for Public Mass Transportation are getting stronger. With prices of road construction materials rising -- in some cases quadrupling -- governments are not able to purchase anywhere near the same amount for a road anymore.
Still, there may be some Republican opposition to HB 1273. Stay tuned to The Journal for further updates from the 2009 legislative session.
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