The Recession and Indiana Public Libraries

Transcription

1 Purdue Cooperative Extension Service The Recession and Indiana Public Libraries Larry DeBoer Department of Agricultural Economics Purdue University May 3, 2011 For more information DeBoer s Indiana Local Government Information website:

2 TAX CAP CREDITS Recession and Tax Caps Recession reduced property prices in 2009 in many counties Trending incorporates reduced prices into assessed values in 2010, used for property tax bills in 2011 Lower assessed values require higher tax rates to raise a particular levy Higher tax rates make more taxpayers eligible for tax cap credits Tax cap credits are revenue lost to local governments 2010 Tax Cap Credits, County Totals, District 1 Cnty County Levy 1% 2% 3% Elde rly T ota l Circ Brk a s % of Le vy 20 Elkhart 216,486,891 4,216,792 7,316,066 3,347,219 72,422 14,952, % 37 Jasper 25,048, % 43 Kosciusko 70,835, , , , , % 45 Lake 753,290,598 8,582,858 38,486,814 53,897, , ,084, % 50 Marshall 39,877, , ,315 7,255 15, , % 56 Newton 15,151,366 36, ,901 17,946 14, , % 64 Porter 185,952,861 1,130,629 2,657, ,302 3,826, % 66 Pulaski 10,134, , , % 71 St. Joseph 333,009,064 4,711,442 15,727,809 15,106,015 33,705 35,578, % 75 Starke 17,293,729 32, , , , % District 1 1,667,079,872 19,197,051 65,894,303 72,376, , ,795, % Indiana Total 6,510,739, ,243, ,750, ,235,095 2,441, ,670, % 2011 Tax Cap Credits, County Totals, District 1 Cnty County Levy 1% 2% 3% Elde rly T ota l Circ Brk a s % of Le vy 20 Elkhart 216,315,195 5,594,684 8,086,524 7,252,785 50,251 20,984, % 37 Jasper 25,018, ,544 3, % 43 Kosciusko 72,872, , , , , % 45 Lake Lake data not yet available 50 Marshall 40,515, , , , , % 56 Newton 15,360,768 66, ,829 14,614 20, , % 64 Porter 192,386,058 3,834,885 3,979, ,122 7,910, % 66 Pulaski 10,186, , ,752 12, % 71 St. Joseph 343,345,563 7,088,326 18,514,285 19,615,559 51,742 45,269, % 75 Starke 17,278,081 50, , , , % 1

3 THE PROPERTY TAX MAXIMUM LEVY GROWTH QUOTIENT Recession and the Maximum Levy The maximum levy limits non-school, non-debt property tax levies in most jurisdictions The annual increase in the maximum levy is calculated using the six-year average growth in Indiana non-farm personal income; the same growth quotient is used for the whole state The data enter the formula with a two-year lag For 2011, the income growth rate for 2003 was dropped, and the rate for 2009 was added The 2009 growth rate was negative, because of the recession The growth quotient dropped to 2.9%, its lowest level ever 9.0% 7.0% Calculation of Property Tax Maximum Levy Growth Quotient and estimates Growth Quotient: Six-year Average Growth, 2-year lag 2-year lag: 2011 Quotient based on income growth 5.0% 3.0% 1.0% Income Estimates -1.0% -3.0% Annual Growth Rates, Indiana Non-Farm Personal Income (Statewide) 2

4 INDIANA S LOCAL INCOME TAXES Local Income Tax Distributions, 2009 Based on tax returns reported from July to June Returns from income earned in 2007 Distributions from state paid out of income tax withholdings and payments from 2009 Distributions exceeded withholdings and payments in many counties Special distributions depleted balances in counties state accounts Local Income Tax Distributions, 2011 Based on tax returns reported from July to June Returns from income earned in was the worst year of recession, so distributions declined by 16%, on average Balances are negative in many counties; distributions will be frozen in future years until balances are restored No Tax End-of-2009 Balances as Percent of Collections Less than -5% -5% to 5% More than 5% 3

5 INDIANA S STATE BUDGET AND EDUCATION Indiana State Budget Summary, FY (millions of dollars, Senate's Proposed Budget as of 4/21/11, with April 2011 Revenue Forecast) Revenue Forecast Actual Actual Actual Actual Actual Actual Actual Actual Actual Actual Actual Budget Senate Budget Avg. Ann. Change Start of Year Balances 1,991 1, ,089 1,286 1,413 1, Revenues Sales Tax 3,651 3,687 3,761 4,172 4,721 4,960 5,226 5,379 5,686 6,153 5,915 6,214 6,518 6, % 0.5% 4.6% Individual Income Tax 3,753 3,780 3,541 3,644 3,808 4,213 4,322 4,616 4,838 4,314 3,876 4,390 4,774 5, % 0.9% 7.3% Corporate Income Tax % -10.5% 1.4% Gaming % -1.0% All Other ,072 1, ,370 1,096 1,187 1,125 1,255 1,211 1,156 1, % 3.8% -0.7% Total 9,200 9,123 8,796 10,049 10,918 11,489 12,434 12,703 13,203 13,052 12,317 13,168 13,834 14, % 0.4% 4.6% Appropriations K-12 Education 3,905 4,182 4,185 4,380 4,247 4,512 4,582 4,647 4,830 6,169 7,450 7,584 7,286 7, % 10.9% -1.5% Higher Education 1,331 1,390 1,411 1,440 1,474 1,528 1,544 1,588 1,654 1,744 1,725 1,755 1,678 1, % 0.3% -1.7% Medicaid 1,042 1,144 1,171 1,249 1,266 1,383 1,455 1,525 1,587 1,664 1,848 1,874 1,848 2, % 6.1% 3.6% Property Tax Relief 1,057 1,154 1,180 1,157 2,097 2,143 2,153 2,189 2,308 1, % -85.5% % Health & Social Services ,237 1,354 1,354 1,227 1, % 4.6% -4.6% Public Safety % -0.3% -1.3% All Other 1, , ,122 1,089 1,052 1,015 1, % -3.2% 2.0% Total 9,718 10,190 10,307 10,898 11,310 11,750 12,075 12,359 12,986 14,436 14,383 14,450 13,820 14, % 0.0% -1.0% Current Year Surplus/Deficit (518) (1,067) (1,511) (850) (392) (262) (1,384) (2,066) (1,282) ARRA Medicaid ARRA Fiscal Stabilization ARRA Total Transfers from (to) Other Funds Reversions Payment Delays (Reversals) (156) (337) (241) (31) Total Adjustments ,135 1, (20) (148) (89) End of Year Balances General Fund ,070 Education Fund Medicaid Reserve Rainy Day Fund Total 1, ,089 1,286 1,413 1, ,078 Total Balances % of Revenue 17.8% 10.0% 6.1% 7.2% 4.9% 6.5% 8.8% 10.1% 10.7% 10.9% 6.7% 6.1% 6.0% 7.5% 5% of Revenue Payment Delay Liability Appropriations less Reversions 9,584 10,087 10,162 10,575 11,247 11,528 11,950 12,240 12,854 14,079 13,754 13,704 13,801 14, Percent Change 5.2% 0.7% 4.1% 6.4% 2.5% 3.7% 2.4% 5.0% 9.5% -2.3% -0.4% 0.7% 2.5% Prepared by Larry DeBoer, Department of Agricultural Economics, Purdue University and Purdue Cooperative Extension Service, April

6 Indiana State Budget, Appropriations, Fiscal Year 2011 Total Appropriations: $14,450 million All Other Public Safety 7% 6% Health & Social Services 9% Medicaid 13% K-12 Education 53% Higher Education 12% 16,000 Indiana State Budget Revenues and Appropriations, Actual , Budgeted 2011 and Senate Budget (millions of dollars) 14,000 12,000 10,000 8,000 6,000 4,000 2,000 - Revenues + Stimulus Own Revenues (no Stimulus) Appropriations Appropriations Less Reversions