As students, we think of property taxes as something our parents have to worry about. Our greatest financial worry is finding a way to pay rent and have leftover money for weekend movies or parties.
But you might want to take notice of a hotly debated issue coming to the polls next winter. In November, Indiana voters will get to decide whether the already implemented statewide tax caps, which were passed in 2008, will be put in the state constitution after the Indiana Senate voted to include the referendum Tuesday. This will make it more difficult for the property tax laws to be changed in the future.
When property taxes jumped due to homes' value reassessments in 2007, there was a public outcry to prevent these huge increases from hurting home owners, property managers and business owners. If the assessed values of any property increases, the property taxes can still increase.
City budgets have already taken a hit with the caps. As Muncie saw in June, 32 firefighters and five police officers lost their jobs and two of seven fire stations were shut down. 85 percent of street lights were nearly extinguished and the animal shelter was in danger of closing in December. Muncie has a multi-million deficit looming over 2010.
Ball State University is not immune from the same problems Muncie faces. Over the next 17 months, the university must cut $15.25 million from its budget; this is money it won't be getting from the state as originally planned because the state faces its own budget crisis. While the administration is reportedly considering all options, it's unknown yet what they will be able to cut back.
All of these issues have elicited huge outcries, but those complaining don't seem to understand that the money is not going to magically be found to fund budgets. Ball State's Bowen Center for Public Affairs surveyed Indiana residents and found that 64 percent of statewide voters favored the amendment. Yet, Muncie, Ball State and Indiana's budget woes are mainly due to the property tax reforms that took place two years ago.
Soon the issue will shift towards how to get money lost in the cutbacks. Likely, this will lead to more taxes on something else. If higher education and K-12 funding are cut further, Ball State could suffer, or it might be more difficult to get a K-12 teaching job. Eventually, state employment might be hard to come by.
So, think again before you decide that voting for a property tax cap amendment won't affect you. It might not just yet, but eventually, you might wish you'd paid better attention.
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