Daniels: Cities should use state budget cuts as good example

FORT WAYNE -- Gov. Mitch Daniels told officials from Indiana's cities and towns that they can no longer afford to think only of themselves and they should look at state budget cuts as an example of how to save money.\nDaniels gave the keynote address to the Indiana Association of Cities and Towns annual convention Tuesday. He told the more than 1,000 attendees that officials should not blast state budget cuts.\n"The totally provincial thinking in Indiana where what's good for someone else is bad for me has got to go," Daniels said. "I'm losing patience with people ... who jack up taxes 10 or 15 percent at the same time they're whining about a lack of state money."\nDaniels said if every governmental body limited its spending the way the state did this year "we would not have a property tax problem, we would have property tax relief."\nHe said schools are the biggest driver of property tax increases is schools.\nHe also questioned whether the state needs 292 separate school corporations, especially when many of them have less than 1,000 students. He said Indiana's higher-than-average spending on education is to be praised, but "we don't do very well at putting that money where it's most effective."\nQuestions from the crowd were often pointed.\nOne official wanted to know how local governments can be expected to cover the gap between the unfunded mandates by the state and the amount they are allowed to collect in property taxes. Another wanted to know the chances of meaningful finance reform in the next session of the General Assembly.\nDaniels said he is willing to look at any unfunded mandate. On the General Assembly, he said he disagrees with some legislators who think a short session should be benign so they can campaign for re-election.\n"I think selected big things should always be on the agenda," Daniels said. "Let's make some common cause and try to shoot the moon."\nFort Wayne Mayor Graham Richard asked what lessons could be learned from Hurricanes Katrina and Rita to better prepare for disasters that strike Indiana.\nDaniels said he has already implemented a clear chain of command, citing that s one of the most important lessons he learned. J. Eric Dietz, executive director of the Indiana Department of Homeland Security, would be in charge of a disaster.