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Floyd County
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Floyd income tax clears first hurdle
New Albany, county would share revenue
By Dick Kaukas • dkaukas@courier-journal.com • November 13, 2008
The Floyd County Council voted 4-3 along party lines last night to give initial approval to a new income tax totaling 1.25 percent.
Voting in favor were Democrats Larry McAllister, Ted Heavrin, Carol Shope and Tom Pickett.
Opposed were Republicans Dana Fendley, Lana Aebersold and John Schellenberger.
Lee Cotner, the council's attorney, said afterward that the ordinance will require at least one more "yes" vote by the council at its meeting next month to take effect as scheduled Jan. 1.
If the ordinance wins final approval, Floyd County residents will be paying an income tax of 1 percent -- which would go back to homeowners in the form of property-tax relief -- plus 0.25 percent for public safety, police and firefighters.
For someone with taxable income of $10,000, the tax would be $125. For an income of $100,000, it would total $1,250.
Under the statutory rules set up by the legislature for adopting the tax, the council first had to vote to approve the 1 percent in property-tax relief. Only then could it vote on the 0.25 percent for public safety.
County Auditor Teresa Plaiss said before the meeting that the 0.25 percent tax would generate about $4 million a year for public safety, about equally divided between New Albany and the county.
Plaiss said she had no estimate on how much the 1 percent levy would produce in property-tax relief.
Last night's vote came after more than an hour of discussion and debate, including remarks from the public, before more than 80 people in the City-County Building.
Seated in the back rows were police and firefighters, who supported the tax and applauded speakers who urged the council to adopt the ordinance.
In front were opponents that included leaders of an organization called Concerned Citizens for Accountability, Vicki Denhart and Joe Tanksley.
Denhart told the council that spending by city officials has been excessive and the new tax "is not a solution to our problems." She added, "Government should live on a budget."
New Albany City Councilman Steve Price agreed, saying, "I am not supporting this."
Price added that he feared that the tax revenue could become "a slush fund." He also said the city pays some of its police officers more than other Indiana cities of comparable size.
Those speaking in favor of the tax included Carl Malysz, New Albany's deputy mayor; Paul Haub, president of the New Albany police union; Jeff Firkins, president of the county police union; city Police Chief Greg Crabtree; county Sheriff Darrell Mills; and city fire Chief Matt Juliot.
"We need to come up with some additional revenue for police and fire or we will simply have to cut services," Malysz said.
Haub said the city police department is stretched thin and the new tax would "let us get back in the fight" against crime.
Firkins told the council, "If you don't do this, you have to come up with an idea to fix it, and it can't be two years from now."
Before the vote on the 1 percent tax, Schellenberger said the council should wait until next year to vote on the issue.
Aebersold said the money could be found without imposing a new tax.
Before the vote on the 0.25 percent tax, Schellenberger asked if Heavrin, who is county police chief, could vote on an issue involving more tax money for police and firefighters.
McAllister, the council president, said Heavrin could, as he had researched the issue.
Last night marked the second time this year that the council has considered an income tax.
In July, the council rejected 1 percent in property-tax relief -- which killed the measure and meant there could be no vote on the 0.25 percent tax -- by a vote of 3-2 with one abstention.
11/13/08 Letter to the Editor, New Albany Tribune from Dave Matthews, Floyd County Republican Party Chairman
Dear Steve,
You wanted debate. It didn’t take long for my loyal opposition to come up with the topic. No sooner had the ink dried on the ballots for last week’s election then we have a vote on MORE TAXES for Floyd County from the County Council. You remember those folks I went around the “debate and public appearance circle” with for the last year who promised that they would not increase taxes. My taxes will be going up by thousands if the new tax ordinance is passed. When will we ever learn?
I know. The Republican mantra in describing the Democratic Party is “tax and spend, tax and spend.” Well, you have the evidence in the overwhelming majority vote by Democrats in the County Council to TAX and SPEND. No one has said anything about looking at the checkbook and spending less when the balance gets near zero. We expect our citizens to do this. Why do we not demand our representatives in government do the same? There are cost saving alternatives available.
Hey, just look at some of the expenditures. Last year the New Albany Fire Department claimed over $1 million in overtime expenses alone. The County Sheriff makes $97,000 a year in salary and that is scheduled to go over the $100,000 mark next year. I hear the New Albany chief makes at least that much too. And we are all assuming that any of this tax increase will go to police and fire fighters at all. I agree with at least one Democrat, Steve Price, who probably pretty accurately predicted that “the tax revenue could become ‘a slush fund.’ He also said the city pays some of its police officers more than other Indiana cities of comparable size.” At last, a Democrat who knows how to read a budget and actually analyze where the money is going!
Oh, one more thing. Am I the only one who sees a problem with law enforcement employees voting on salary increases from my taxes for law enforcement employees? And how badly did New Albany actually need a boat to patrol the hostile shores of the Ohio River? Maybe we should give some of that money to our police and fire protection.
Now, lest I be accused of just crying “foul” because I didn’t get elected, please remember that fiscal responsibility was the hallmark of our Republican campaigns as well as our platform. Remember also that our Republican County Council members voted against this tax before the election and are now voting against it again. It’s kind of like the voter who complained….to me of all people….about the current New Albany mayor after he voted for him instead of my candidate last year. Folks, the old adage is still true: You get the government you deserve.
Watch this space for the next two years. You will have one more Democrat on the County Council after January 1st and one less Republican. I don’t know how many times I will have to repeat the “mantra” to get you to believe it. Just remember, there is another election just two years away!
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Floyd County
Republican Party - Floyd County, Indiana 2008 This website paid
for and authorized by the Floyd County Republican Central
Committee Dave Matthews, Chairman
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