Does the history of Indianapolis indicate the wisdom of putting the school system under the authority of the Mayor? We wonder.
We’re not prepared to comment on the feasibility of the actual day-to-day operation of the schools being subject to specifically politically oriented problems which would seem to be better considered elsewhere. But there is a question about finances, and the effect on the school system by the outrageous use of Tax Increment Finance districts by all recent mayors of the city, regardless of political party.
TIF districts are established by the city, seemingly with no regard for the effect on any other governmental unit which is funded primarily by property taxes.
The rationale for TIF usage is that the project involved will, ultimately, increase revenues from the property tax. That is, after bonds and other expenses are paid off. In actual practice, the schools and all other governmental units - even the civil city itself - are being short changed. In Indianapolis, TIF funds are being used as a slush fund to finance the "next" operative who comes up with a project which private financing won’t touch.
We’ve been told that the Indianapolis Bond Bank is consistently receiving more revenue than is needed to make required bond payments. Plus $20 million in each of the last three years. Meanwhile, with a "debt portfolio" of $5 billion, the Bank is sitting on a $100 million "reserves."
The TIF law should provide one of two alternatives: 1) Excess collections must be used to pay down all debt as quickly as possible, or 2) All such excess funds must be paid annually to governmental agencies which receive normal property tax revenues as their funding. If this is not a part of the current law, it should be.
Would either - or both - parties commit to fighting for such change in the law at the legislature? Their answer to this question might have some effect on attitudes about the proposed change.
Can we hope someone with a louder voice than ours would actually ask the candidates where they would stand on this concept?
Comments