Option tax a bailout bill for South Bend?

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Posted: 6:23 PM Dec 12, 2008
Last Updated: 1:47 AM Dec 13, 2008
Reporter: Mark Peterson
Email Address: mpeterson@wndu.com

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A proposed increase in St. Joseph County’s option income tax today was compared to a county-wide bailout bill for the city of South Bend.

Last night, with a capacity crowd on hand, South Bend’s Common Council passed a proposed increase in the income tax of three quarters of one percent.

Even with the extra revenue, the city is projecting a deficit of $8-million in 2010.

Estimates show the same tax hike would give St. Joseph County government two consecutive years of budget surpluses. The total of 2009 would be $1.4 million, and the total for 2010 is projected to be $2.2 million.

“If you ‘max’ the tax, South Bend is saying they don’t have enough,” said District I St. Joseph County Councilman Mark Root. “If you don’t pass an option income tax at all, Mishawaka says fine, we have enough, and the county is probably somewhere in-between.”

The fate of the income tax increase now rests with the St. Joseph County Council at a meeting scheduled for Monday night.

“We in the county don’t need an income tax in 2009,” said Root, “and it’s not our responsibility to bail out South Bend.”

St. Joseph County Council District E representative Mike Kruk disagrees. “I do live in the city, and I want to make sure that we do have adequate police and fire for my own well being as well as for everybody else,” Kruk said in a telephone interview from Indianapolis where he is attending a conference.

Kruk agrees that the city needs the income tax proceeds more than the county, but he adds, “I think the last two years we’ve cut over $4-million out of our budget, I don’t know how many people are aware of that.” Kruk added, “I know nobody wants to pass any kind of a tax, but I don’t think we want to put people at risk if we have to really cut back on public safety.”

Both council members who spoke with News Center 16 today predicted that the tax would likely pass at Monday’s meeting.

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Comments are posted from viewers like you and do not always reflect the views of this station.

Posted by: anonymous Location: st. joe county on Dec 16, 2008 at 08:17 AM
Everyone talks about getting rid of the mayor and his group but they vote them in overwhelmingly. stick by your words and get rid of the bunch!

Posted by: Anonymous on Dec 14, 2008 at 02:14 PM
I have growing respect for Henry Davis (South Bend Common Council D-2nd) for recognizing the facts and voting against the new tax. --- The Luecke administration of South Bend is not acting in the interests of the neediest and most vulnerable of the city's residents. --- Mayor Luecke is basically running a jobs-protection administration. The jobs he is most concerned with are those held by his political cronies and allies. After they are taken care of there is nothing left for Davis' constituents. --- Davis recognizes that the hungry tribe that Luecke leads will consume all the revenue from any new taxes. If the 2nd district will ever gets it reasonable share of City resources, it will require an new, less voracious, administration. --- Mr. Davis, are you willing to run for Mayor? Are there any equally courageous County Council members?

Posted by: john on Dec 13, 2008 at 03:55 PM
unemployment checks are taxed, ray are you sure you are not the mayor of south bend? other counties are using different sources of tax that burden the residents of their county less. ft. wayne has a one percent food and beverage tax. lake county has NO county income tax at all because the residents there don't want it and their representatives respected that wish!!! marion county and indianapolis also have higher food and beverage taxes and motel taxes. we have one of the lowest motel taxes in the state but our politicians prefer to push this income tax down the residents throats!

Posted by: Mike Location: MIshawaka on Dec 13, 2008 at 03:17 PM
Don't forget the property tax caps at 1.1% in St. Joseph and Lake counties. The rest of the state is capped at 1.0%. So already you can see the mismanagement of the current officials in St. Joseph county.

Posted by: Annon Location: South Bend on Dec 13, 2008 at 02:06 PM
Mimi give me a break...."Michigan is looking better"...Hardly, where are the jobs in Michigan. There are going to be large job cuts in the auto industry because of the greed of the UAW. They are bankrupting the big 3 and thank God there are some senators are not going to give OUR money to them until they get their expenses under control. Bankruptcy will break the UAW so one way or another it will happen. There are cuts that can be made, do away with the duplication of services. Police and Fire take priority. Then Streets, water and sewer....Parks and recreation come last... For all of

Posted by: Anonymous on Dec 13, 2008 at 12:35 PM
raise taxes great idea!!! lets give decent people another reason to want to flee from south bend. why oh why did the people of south bend reelect lickme????

Posted by: lisa on Dec 13, 2008 at 12:18 PM
the mayor is can not properly manage the budget of his city. he wants mishawaka and county residents to bail him out. why doesn't he do the right thing and resign. he says that the income tax is needed to replace the money lost from the property tax cut. what a liar! he forgot that the sales tax was increased to offset that! so now he needs two tax increases to cover the south bends shortfall. his budget is bloated. mr. mayor, give up your well paid job and try and find work where you can loose 18 million dollars and still be employed with benefits! we don't want this tax and stop pushing it down our throats!

Posted by: jerry on Dec 13, 2008 at 12:14 PM
why did wndu not report that governor daniels has stated that there is no need to increase the income tax in this area, that the budget here is 'bloated' and there is plenty of opportunity to cut the budget before there is a need for the tax? why doesn't wndu report about interviewing council members about other options first, such as taxing notre dame tickets, increasing the motel tax, or the food and beverage tax? other stations have done so. why should we have to bail out a mayor that has run up a bill that we have to pay for? in any private business he would have been fired for such poor management of funds! instead we keep paying him 100,000 dollars a year with benefits for this! he should be fired and stand in the unemployment line. then he truly would understand what this extra money they are taking keeps food off our tables, NOT a fast food meal but milk and eggs. the people of t his county do not want this tax, the representatives work for us!

Posted by: Ron S Location: South Bend on Dec 13, 2008 at 10:00 AM
I'm out of this county. Too many taxes and people not qualified to run the county government.

Posted by: Mimi Location: Mishawaka on Dec 13, 2008 at 08:45 AM
I will be paying more with this than before the (alleged) property tax cut. As soon as I can sell my house, I am out of this county. St. Joe county will soon be a ghost town. Nice job Luecke! Michigan is looking better and better.

Posted by: L Location: County on Dec 13, 2008 at 08:41 AM
Raise taxes on people who are about to lose jobs and homes and on those who already have? Get real! People of St.Joe,you need to stand up and demand a different solution. Our govt. is becoming corrupt and we have to pay the price.

Posted by: George Location: Mishawaka on Dec 13, 2008 at 08:38 AM
I just got laid off Friday. So my money will be short very soon. And I really want to pay more taxes. I think South Bend will become a ghost town before things are over, my family might have to move because of the job situation as many others are planning also. So who will they tax then? It is time for our local governments to get this right, make cuts. No more TAX. Can you say REVOLUTION!

Posted by: Raymond Location: North Side on Dec 13, 2008 at 08:33 AM
Does anyone know that Mitch Daniels had a visit and a meeting with our South Bend mayor in early 2008 ? At that time Luecke was trying to butter-up Mitch that South Bend was strapped for money. He Mitch at that time expressed to Luecke that SOUTH BEND city government had way too much inside fat and needed to cut back on local government.He also stated that it was not for South Bend government to penalize taxpayers with more taxes when his (Luecke's )government could downsize and control finances within local government.Mitch told the mayor to invest in business but not to give out tax abatements to companies that use the 5 year abatement and then leave.In other words our mayor was Pi---- off.Now this is his answer to his administrations greed.It is fact and true and I must admit to it as I am a democrat that will soon leave this city I once called home.

Posted by: Chad on Dec 13, 2008 at 07:38 AM
Amen and Ray! did you proof read your comment. A sales tax fairly Taxes everyone. I am not fronting the bill because I have a job. That is punishing me so where is the incentive to keep working? Where is the incentive to look for work? I will take the lay off so that I can get Unemployment, not get taxed and let Ray pay my bills!!

Posted by: Golf Pros??? Location: Not on a green on Dec 13, 2008 at 07:26 AM
I know that there might be a chance that Golf Pros bring in some revenue through lessons, etc., but it seems like a stretch of government power when you see two golf pros in the budget from 2008, making over $40,000 a year. I think the Council and the Mayor really need to look at this budget and start making cuts!

Posted by: Ray Location: South Bend on Dec 12, 2008 at 11:53 PM
I don't have a problem with this tax hike because the people that out of work you can't tax them so they have no income to tax. The leaders need to control their spending this is why we don't have money for police and fire coverage that we all expect.

Posted by: Amen Location: St Joe County on Dec 12, 2008 at 10:44 PM
We need the tax increase, the very small tax increase thanks to Sales Tax hiking Mitch Daniels.

Posted by: John Location: South Bend on Dec 12, 2008 at 10:25 PM
Kruk says that the county as cut $4 million dollars in their budget over the last 2 years. What has South Bend City cut? The answer is simple...nothing. The City wants to keep spending, and they expect the taxpayers to keep footing the bill. Good job Root. Now just convince the rest of the county council to vote AGAINST the City's tax increase and MAKE the City start trimming the fat!

Posted by: Anonymous on Dec 12, 2008 at 10:11 PM
Don't pass the TAX! If this tax gets passed time to get the word out and eject every one of these elected "official's" out of office.

Posted by: GoCavemen Location: Local Guy on Dec 12, 2008 at 09:47 PM
Kruk's comments simply prove that Root is correct. The purpose of the additional LOIT is to bail out South Bend. Kruk also fails to mention the $4 million settlement that SB will be getting very soon. Unless of course he knows that the funds have already been slated (as Catherine Fanello has recently suggested) for contracts with politically well-connected contractors.

Posted by: Dave Location: SB on Dec 12, 2008 at 09:23 PM
So if Mishawaka doesn't needs it and the County is close then why can't South Bend get it right. Could it be mismanagement, could be so thanks to everyone who voted for the one and only Mayor Spend Alot Stephen Luecke.

Posted by: Annon Location: South Bend on Dec 12, 2008 at 08:58 PM
How can Mr. Root say that...They have not given County employees a raise in 5 years. Ask him about that WNDU

Posted by: Broke Location: South Bend on Dec 12, 2008 at 08:48 PM
I just received my social security statement and I am making less than I did 2 years ago at the same job. And then the mayor and his band of merry council members want to take more money from me? Come on, who are they fooling. We will never get ahead living in South Bend. Lowered property taxes. What a bunch of crock. We all know that the county council is gutless and will vote for the tax. They do not care what we the community think. South Bend is more corrupt than Chicago. There is no need for the mayor to have assistants. He needs to cut jobs. And don't replace any one who retires. The SBCSC never replaces retirees and makes who ever is left pick up the work. Luecke is destroying South Bend with his greed. Maybe he should give the money to the Homeless shelter because that is where we are all headed.

Posted by: steve on Dec 12, 2008 at 07:54 PM
of course it will pass, because none of the council really cares what the people are saying. they tax us, and then tax us some more, and then they get reelected and tax us some more. when will it ever end? the sales tax was raised to offset property tax reductions. so now we will have even less because they are going to once again raise the income tax! when mr. root says he is against it, mishawaka says they don't need it, but the 100,000 dollar mayor of south bends city is in the hole, all the rest of us should bail him out. in the private sector he would have been fired! maybe then he could stand in line with the rest of the people that are without jobs and trying to get by on unemployment!

Posted by: Anonymous on Dec 12, 2008 at 07:46 PM
Councilman Kruk (who says there are no crooks in government) may live in the city but he is on the County Council not the city council. If he wants city services let him go and let city officials know they need to prioritize their budget to protect public safety. But he shouldn't vote for a tax that his government doesn't need just because the city where he lives can't get it budget figured out. That is the definition of a Bailout.