Property tax bill could affect IU students

The Indiana General Assembly will face a daunting task when it reconvenes to consider the bill passed last Wednesday in a 19-6 vote by the House Ways and Means Committee. The potential impact of this debate on IU students is great as future funding for higher education is in jeopardy. \nBeginning June 3, legislators will meet at the statehouse in downtown Indianapolis to mull over possible solutions to Indiana's $1 billion budget deficit, and to discuss a remedy for court-ordered property tax hikes.\nMajority Leader Mark Kruzan, D-Bloomington, will be among those lawmakers. \n"The deficit has already taken a tremendous toll on education at all levels," Kruzan said. "Public school teachers are being laid off and university funding is being cut."\nA decrease in capital expenditure is the likely outcome if the state is unable to devise a remedy to current fiscal woes, which Kruzan says are the consequence of "overspending, massive tax cuts and a national recession, which, unfortunately, all occurred simultaneously."\nA large increase in tuition at state universities such as IU may be the result of a continuing state budget crisis. Some students wonder what the effect will be on Indiana's future productivity.\n"We must keep reinvesting in our institutions of higher education," junior Jared Jakacky said, "This diversifies our state, making us better able to adapt to the dynamic system of the world."\nJunior George Mohler worries about the implications.\n"They have created a mess," he said. "It sounds like it might be us that have to cope with it."\nKruzan has similar worries, and believes that the implementation of the Democrats' new budget plan, which three Ways and Means committee Republicans voted for, will offer relief to higher education.\n"I'm willing to increase cigarette and gambling taxes to address education and social service needs," Kruzan said.\nAnother major issue being addressed in the special session with ramifications for college students is the recent court-ordered property tax increase. \nAlthough the majority of students are not landowners, Kruzan says students will get higher payments dumped on them.\n"Landlords are going to understandably pass their additional property tax burden on in the form of rent increases," Kruzan said.\nA solution to the property tax problem is contained within House Bill 1001ss, the bill passed in committee last week proposing a dispersion of taxing, which the Assembly will debate. This is a somewhat volatile issue, with disagreement among many about how the situation should be dealt with. It may be difficult for lawmakers to avoid, though, as their constituents may be forced to bear the brunt of significant tax increases. One possible response would be an increase in other taxes, to diffuse the costs.\n"(Gov. Frank O'Bannon) wants to raise the sales tax only to offset the property tax cuts he's seeking," Kruzan said. \nDebate on this issue will likely be heated, with some Republicans seeking increases in various taxes and an expansion of gaming, others rejecting tax increases, and Democrats generally seeking tax increases, acknowledging increases would be unpopular. \nThe conclusion of this debate is not evident at this point. Although legislators indicated a bipartisan resolve to address Indiana's mounting economic difficulties, the looming budget deficit, and tax codes that both parties agree are out-dated, it may be hard to reach a consensus. The governor has said he is confident that solutions to these problems can be found if lawmakers on both sides of the aisle are willing to make sacrifices. \nJakacky fears Indiana's budget deficit is not successfully addressed, and the result increases cuts in higher education.\n"We will only shoot ourselves in the foot." Jakacky said.