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City by the Lake.org, The Voice of Michigan City, Indiana _ City Talk _ MCAS to sue auditor

Posted by: southsider2k9 Oct 15 2009, 02:35 PM

http://www.southbendtribune.com/article/20091015/News01/910150309/1130

QUOTE
Michigan City schools will sue county auditor
Refusal to certify assessment will cost school $8.2 million, board says.

By STAN MADDUX
Tribune Correspondent

MICHIGAN CITY — The Michigan City school corporation will go to court to try to recover $8.2 million that would be lost to the schools from property tax assessments certified by the LaPorte County auditor.

The school board Tuesday night decided to pursue legal action and pay a majority of the legal expenses should other school corporations and government entities in LaPorte County join the lawsuit.

"We have commitments. There are others," said Jim Kintzele, Michigan City school board president.

Losing $8.2 million from a budget of about $50 million is sure to result in major cuts in areas such as student programs and staff, he said.

"If we canceled all of the sports programs, that would be less than $2 million," Kintzele said. "You just figure from there."

The school corporation wants a court order requiring LaPorte County Auditor Craig Hinchman to certify, instead, the property tax assessments from 2006 for use in current billing.

Despite objections from LaPorte County Assessor Carol McDaniel, Hinchman recently certified figures from 2005, which for the city of Michigan City would mean a $2.8 million loss next year.

McDaniel already has filed a lawsuit against Hinchman, seeking certification of the 2006 tax figures that her office approved during a reassessment that's now approaching its third year.

It's the auditor's decision whether to certify the figures.

Hinchman maintains the 2006 figures are flawed, with many over-assessed and underassessed properties.

And, Hinchman said, he cannot in good conscience place his signature on them.

"I'm trying to do what I believe is right," Hinchman said. "Sometimes, the right thing is not the popular thing to do."

The cuts in the school budget to make up for such a shortfall would actually be deeper than what they appear on the surface.

For example, $10 million of next year's budget is reserved to finance bonds taken out for construction projects and cannot be drawn from or reduced to finance daily operating costs, school board member Beryle Burgwald said.

Burgwald said there is some fat to cut but reductions in staff and programs would be inevitable.

He said that when a court decision would be handed down is not known, but he hopes it's soon.

"Time is of the essence," Burgwald said.

Michigan City Mayor Chuck Oberlie said the city will join in the lawsuit.

He said the $2.8 million the city would lose is roughly 15 percent of its general fund budget under the figures certified by Hinchman.

Oberlie is concerned there will be similar losses each year if the 2005 figures are used in the future yearly tax billing.


http://thenewsdispatch.com/main.asp?SectionID=1&SubSectionID=1&ArticleID=26397

QUOTE
What's At Stake
A close look at what the reassessment debate means to taxpayers

Laurie Wink
The News-Dispatch

MICHIGAN CITY - The issue of County Auditor Craig Hinchman certifying 2005-pay-2006 property values instead of the 2006-pay-2007 reassessed values from County Assessor Carol McDaniel has been well documented.

What's at stake in the matter, however, is this: Will La Porte County have enough property tax revenue to fund county-wide taxing units, such as townships, libraries, towns, cities and school corporations?

Michigan Township Assessor Terry Beckinger helped shed light on the situation.

Michigan Township has been the focus of the tax-appeals storm generated by beach property owners who experienced dramatic jumps in their property assessed values.

The period in question was between 2005-pay-2006 and 2006-pay-2007, and the dramatic change was the result of a state-ordered trending process intended to bring properties to market value.

Beckinger said the differences in assessed values are more dramatic as property values increase.

As an example, Beckinger randomly selected a Michigan City residence of fewer than 1,000 square feet, with three bedrooms and one bathroom. The property's assessed value in 2005, before trending, was $64,500. The 2006 assessed value was $78,100 - not a big jump, according to Beckinger.

However, a house on Lake Shore Drive with an assessed value of $1.8 million in 2005 leapt to $3.8 million in 2006. Beckinger said most of the increase was the result of market appreciation between 1999 and 2005.

The differences in assessed values are even more dramatic for certain commercial and industrial properties.

The NIPSCO generating plant and land, Beckinger said, was valued at about $14 million in 2005, compared to more than $207 million in 2006.

Blue Chip Casino's assessed value went from more than $53 million in 2005 to more than $159 million in 2006. Beckinger said the dramatic increase was partially explained by the fact that the new casino boat was only partially built in 2005, and a $10 million parking garage had yet to be completed.

By using the 2005-pay-2006 assessed property values, Hinchman will reduce the base of valuation upon which the county can collect property taxes. That's because the 2005-pay-06 property taxes were based on 1999 assessed property values, whereas the 2006-pay-07 property assessments were trended ­- as required by state law - to bring them to market value.

The county receives about 70 percent of its revenue from residential property taxes, and another 16 percent from commercial property taxes.

Another large commercial property in Michigan Township, Lighthouse Place Premium Outlets, experienced a slight decline in assessed value, from about $54 million in 2005 to about $53 million in 2006. Beckinger said the difference occurred when some of the land in the mall was reclassified.

Michigan City Area Schools says it will suffer a shortfall of $8 million in tax revenue if tax collections are based on Hinchman's numbers instead of McDaniels' figures. The MCAS school board voted to take legal action to overturn Hinchman's decision.

Beckinger said he's unsure what to tell people who come to him wanting to appeal their 2006-pay-2007 property assessment. He said he has requested the state Department of Local Government Finance clarify the assessments.

"I would like to see a resolution so we can move forward with this," Beckinger said. "If we're going to stay with 2005 values, there's no sense in having people pay for property appraisals and attorneys for changes. At this point, we're really unsure."

The DLGF did caution Hinchman about his choice, saying it had never been done, but indicated Hinchman could make his own decision about the matter.

Beckinger thinks Hinchman overstepped his responsibilities and predicts significant refunds will be issued to individual property owners, particularly those living closest to Lake Michigan.

"I don't agree with it," Beckinger said, "because I think we had a system in place that we should have forged ahead (with)."

q

Contact Laurie Wink at lwink@thenewsdispatch.com.


Posted by: southsider2k9 Oct 15 2009, 02:42 PM

http://thenewsdispatch.com/main.asp?SectionID=1&SubSectionID=1&ArticleID=26374

QUOTE
MCAS talks legal action about budget shortfall

Alicia Ebaugh
Staff Writer

MICHIGAN CITY - Michigan City Area Schools is prepared to do whatever it takes to recoup more than $8 million in tax revenue it stands to lose from property tax assessments, including filing a lawsuit, school board members decided Tuesday.

"This is an unprecedented illegal action by La Porte County Auditor Craig Hinchman to deprive the district of 28 percent of its tax revenues," said school board president Jim Kintzele. "We will join the city of Michigan City and any other affected entities in addressing his actions."

The resolution approved unanimously by the school board stated the school district would pay legal costs "in proportion to the amount of revenue lost," coming out to about 55 percent. Michigan City schools stand to lose the most money of all county entities from Hinchman's decision to use assessed values from 2005-pay-2006 instead of the trended values for 2006-pay-2007 as approved by the Indiana Department of Local Government Finance.

"It's only fair for us to pull our own weight," Kintzele said.

If the budget shortfall isn't addressed, the school district will have to eliminate a significant number of teaching and staff positions, Kintzele said.

"It's absolutely necessary to correct this. Even if we cut out every sports activity in the school system, it would only save us $2 million," he said. "You can see what kind of a bind we are in."

A lawsuit filed in Indiana Tax Court against the auditor's office was recommended to the school board as the best route to go, Kintzele said, but such a suit would need to be filed by Thursday. An attorney has not yet been hired, but Kintzele said he was under the impression that City Attorney John Espar would lead the case on behalf of all parties.

The resolution also gives the school district an option to file its own case if other entities choose not to. School board member Beryle Burgwald said it is important, however, not to become a party in the case La Porte County Assessor Carol McDaniel brought against Hinchman in tax court, questioning his authority in refusing to use her 2006-pay-07 assessed values.

"That's just a mess, and we don't want to be connected to McDaniel," Burgwald said.

The school district could also seek a writ of mandamus, Burgwald said, a court order which forces a government official to "perform their duties correctly" - in this case, forcing Hinchman to accept the 2006-pay-07 assessed values.

Posted by: southsider2k9 Oct 19 2009, 08:10 PM

http://thenewsdispatch.com/main.asp?SectionID=50&SubSectionID=118&ArticleID=26448&TM=79788

QUOTE

Auditor explains his side of county 'tax mess'

Craig Hinchman

How did we get into this mess! In 2006 a reassessment was done to determine the fair market value of real estate in La Porte County. This work was completed by an outside vendor and sent to the Department of Local Government and Finance (DLGF), which approved these new assessments.

These same approved assessments were then challenged by a local taxpayer who stated that the data was flawed. After a lengthy examination the DLGF approval was rescinded and the original vendor was directed to make adjustments to the data to correct mistakes. Once again the data was submitted to the DLGF and was approved. This corrected data was again challenged by the same local taxpayer. Approximately seven months later the DLGF rescinded its approval again and then ordered a new reassessment.

After 2½ years of this ongoing mess, I was elected to the office of auditor. Now I had to deal with this ongoing problem. The DLGF informed me that the ratio study was completed. I was told that the assessor would roll assessed values (AVs) to me and I would need to certify those values. I explained to the DLGF that I had a problem certifying those values because there seemed to be many problems with the assessed values countywide. I don't know if they used bad data, or if the methodology used was wrong. Many properties throughout the county are over-assessed and others are under-assessed. Neither situation is fair to the taxpayer.

There have been public hearings as well as many articles in the newspapers on the mess. I wanted the DLGF to certify the values themselves since they approved the vendor that was hired to assess the county and it was their ratio study. The DLGF responded that it was my duty to certify the values, not theirs. I asked, as an auditor, how can I certify that the AVs are correct when I do not believe they are. The DLGF then stated I would be certifying that the exemptions were correct. This I would be willing to do. Then the DLGF came back and said no, that I had to certify the AVs as well as the exemptions. I also asked if they would mandate me to certify the values or indemnify me from certifying values I felt were wrong. Their answer was no.

If I certify that the values are correct while knowing they are not, I would be committing an act of malfeasance, a Class D felony. Now my choice is to either certify something I believe is incorrect and let this mess continue, or not certify incorrect data. This is the real issue.

Over the last couple of months decisions made by the DLGF have impacted the 22 cross-county taxing units that directly affect school districts in La Porte and adjoining counties. During the next three months the DLGF and I had ongoing communications, yet the DLGF states I did nothing during those months. The DLGF contacted the Property Tax Assessment Board of Appeals (PTABOA) and told them that they could apply a trending factor, but they chose not to. I looked to the DLGF for direction and help, which I feel was not given. They change their opinion often and always seem upset with La Porte County. The DLGF does not want to admit that they played a big part in this mess, and still are creating problems for us.

In my opinion, most of the problems were created by Commissioner Rushenberg's predecessor. In June 2009, a public meeting was held in La Porte attended by the commissioner of the DLGF and members of his staff. Elected officials and members of the public stated their frustration with the assessment problems. Commissioner Rushenberg stated at that time that he would be willing to accept the 2005 payable 2006 values with a trending figure to get things moving forward. It was my understanding that once a year was selected that year would be used with a trending factor to get a final tax bill out for the other years.

I believed that the 2006 pay 2007 values were wrong and that using the 2005 pay 2006 figures would be better for the taxpayer. I was going certify the 2005 pay 2006 figures with an added 25 percent trending figure. Commissioner Rushenberg determined that I could not use any trending figure. He stated that if I used the 2005 pay 2006 values, it would have to be the exact numbers that were certified by the previous auditor.

After running the numbers, it was my belief that this would not hurt the county so I certified the value. A few weeks later I got a call from the DLGF saying that for the 22 cross-county taxing districts the DLGF was going to change my certified values, and that it most likely would cause a 16 percent shortfall. If the DLGF did not change the values I certified there would not have been a shortfall. At this time my deputy and I called the 22 cross-county taxing units and warned of them about this problem. We directed them to file the 1782 notice to hopefully block the DLGF from changing my certified values. Most everyone said they had numbers from the DLGF and they did not think there would be a problem. Only two taxing units said they would file an appeal. I then filed an appeal with the DLGF for the county and taxing units. At that time I asked Commissioner Rushenberg if he could provide me an IC code or an executive order that gave them permission to change my certified values. I was never given this information.

Now in the Oct. 14 Herald-Argus, Commissioner Rushenberg stated "The Legislature has not given the DLGF regulatory authority over county auditors, and so the DLGF'S mandatory duty is to take what the auditor certifies. The DLGF has no legal authority to force the auditor to certify one set of values over another. Such authority would have to come from the Legislature - or a court."

I feel this is what the 22 cross-county taxing units should be challenging. I wonder what the result would have been if all 22 cross-county units and I filed the appeal. I also sent a letter to our state representatives telling them that there was going to be a shortfall and asking for their assistance. Two of our representatives informed me that they contacted the DLGF. Again, I feel bad that there is going to be a shortfall, but the issue is whether I should certify values I believe are incorrect and commit a felony!

If the values I certified were used there would not have been a huge shortfall. I have looked out for the taxpayers and taxing units' best interest. This is now in the hands of the tax court and a decision will be made. I feel confident after hearing all the information the court will rule in my favor. Sometimes you have to stand up for what is right even though it is not a popular stand.

The county assessor and Michigan Township assessor have stated that they think the retrended assessed values are correct. I wonder, if they had to certify the values, would they still feel the same way? One of the arguments used is that there have been thousands of corrections and the data is better than it originally was. But there are still lots of problems with the data, and it won't be corrected until a new reassessment is done.

Craig Hinchman is La Porte County auditor.

Posted by: southsider2k9 Oct 21 2009, 07:30 PM

http://thenewsdispatch.com/main.asp?SectionID=1&SubSectionID=1&ArticleID=26527

QUOTE
Murphy explains reason behind vote

Laurie Wink
The News-Dispatch

MICHIGAN CITY - City Council member Rich Murphy, D-1st Ward, said Tuesday night he had no choice but to support the city's legal action to recover a projected $2.8 million shortfall in property tax revenues.

Murphy said his support was not meant as a vote against 1st Ward residents who have been fighting for fair property taxes and believe in using the 2005 assessed values certified by County Auditor Craig Hinchman, rather than the 2006 assessments they consider flawed.

"My vote supports Michigan City, the school system and all entities that will suffer irreparable harm if we don't act," he said. "It's the only remedy we can take. We can't be fiscally irresponsible."

Murphy's remarks came before the City Council's unanimous vote Tuesday supporting the appeal filed Thursday in the Indiana Tax Court on behalf of Michigan City, Long Beach and the Michigan City Area Schools.

Mayor Chuck Oberlie told the council at a special meeting Sept. 28 he intended to file the appeal by the Oct. 15 deadline. He believes other entities will join in the appeal.

Oberlie said the council's support was needed because the members will need to appropriate funds to cover legal costs from the appeal. City attorney John Espar is the lead counsel for the appeal and is joined by Beth Henkel, Michigan City Area Schools attorney.

Oberlie is hoping for a decision from the Indiana Tax Court before the end of this year.

City Council President Bob McKee, D-At-Large, said supporting the appeal was the council's only option, given the "total system breakdown."

"There's been too much blaming of one person or another," McKee said. "It was a group effort that got us there."

Contact Laurie Wink at lwink@thenewsdispatch.com.

Posted by: Johnny Rush Oct 21 2009, 10:51 PM

Bob McKie from the Council Meeting on the vote:

If the County Auditor were the quarterback of our football team, this is like him throwing an interception on the last play of the game to, what should have been, a wide open receiver in the endzone. It would appear that he single handidly lost the game, however review of the game film and the entire game would show that there were also 4 fumbles by a running back by the name of DLGF, 2 critical pass interference calls on our safety by the name of the Assessor, and at least 5 penalties on our offensive line by the name of NEXUS. In the end, the collective miscues are what cost us the game.

This situation we find ourselves in right now is no different. By no stretch of the imagination was it caused simply by one man, or by that one last interception that was thrown. And I say these things and draw the analogy because I think, too many individuals here came under fire...it was certainly a group effort

Posted by: southsider2k9 Nov 3 2009, 09:42 PM

http://thenewsdispatch.com/main.asp?SectionID=1&SubSectionID=1&ArticleID=26793

QUOTE
Hearing set in assessor case
MICHIGAN CITY ­- A hearing is set for Dec. 14 in the Indiana Tax Court on a motion to dismiss La Porte County Assessor Carol McDaniel's lawsuit against La Porte County Auditor Craig Hinchman, and other county officials.

Fort Wayne attorney Mark GiaQuinta filed a suit Sept. 15 on behalf of McDaniel challenging Hinchman's authority to use a different set of assessed property values than the one originally certified by the assessor and the Indiana Department of Local Government Finance. La Porte County attorneys Craig Braje and Christopher Willoughby are seeking to dismiss McDaniel's lawsuit, arguing that McDaniel has not used all possible remedies to prevent Hinchman's action.

Indiana Tax Court Judge Thomas G. Fisher agreed on Oct. 23 to hear the motion at 1:30 p.m. Dec. 14 in Indianapolis.

Posted by: Dave Nov 4 2009, 01:04 AM

QUOTE
La Porte County attorneys Craig Braje and Christopher Willoughby are seeking to dismiss McDaniel's lawsuit, arguing that McDaniel has not used all possible remedies to prevent Hinchman's action.


I'm not familiar with the particulars of the case, as I haven't read the pleadings, but if McDaniel hasn't exhausted non-litigation methods of resolving her complaint, she's going to have her case dismissed. That's what is known as http://en.wikipedia.org/wiki/Black_letter_law.

Posted by: southsider2k9 Nov 6 2009, 03:07 PM

http://thenewsdispatch.com/main.asp?SectionID=1&SubSectionID=1&ArticleID=26766

QUOTE
Sanitary district taking legal action to recover tax revenue

Laurie Wink
The News-Dispatch

MICHIGAN CITY - The Sanitary District of Michigan City will join other parties, including the city of Michigan City, in taking legal action in Indiana Tax Court to recover financial losses from lowered property assessments.

The Sanitary District's board of commissioners has approved a resolution to go after an expected loss of $512,000 in 2007 property taxes resulting from what the commissioners termed La Porte County Auditor Craig Hinchman's "illegal action." Hinchman opted to certify untrended 2005-pay-06 assessed values, rather than the 2006 assessed values approved by the Indiana Department of Local Government Finance and La Porte County Assessor Carol McDaniel because he considered that data flawed.

A loss of more than $500,000 would require the Sanitary District to reduce its workforce or take other actions, according to the unanimously approved resolution.

The Sanitary District board of commissioners will join the appeal filed Oct. 15 in the Indiana Tax Court on behalf of the City of Michigan City, Long Beach and Michigan City Area Schools.

Legal costs associated with the joint effort will be shared by participating parties in proportion to the potential loss of revenue.

City attorney John Espar is the lead counsel for the appeal and is joined by Beth Henkel, Michigan City Area Schools attorney.

Posted by: southsider2k9 Nov 12 2009, 09:09 AM

http://thenewsdispatch.com/main.asp?SectionID=1&SubSectionID=1&ArticleID=26964

QUOTE
School board member Jones addresses budget rumors

Alicia Ebaugh
Staff Writer

MICHIGAN CITY - Cuts at Michigan City Area Schools are not already being planned in anticipation of a budget shortfall, said school board member Jeffrey Jones in response to "rumors that are floating around."

He took the opportunity near the end of Tuesday's school board meeting to reflect on the building uncertainty within MCAS about the possibility of an $8.2 million reduction in income due to the county's property tax valuation dispute.

"I've been hearing about teachers who are concerned about their jobs, saying there are already lists that say who might be going, what schools might be closing. I feel like I need to say publicly that we have not discussed any of these options," Jones said. "We are not having secret meetings to close schools. $8.2 million isn't chump change, but I'm remaining hopeful we won't have to take drastic action until a time when the decisions have been made."

Board President Jim Kintzele said the district is tracking the lawsuit it filed against the county auditor's office last month and will keep in mind what may need to be done in the future.

"If hurt comes to hurt, everybody is going to feel it, not just one group of people," Kintzele said.

In other business, H1N1 vaccination clinics were held last week at Marsh Elementary School and Eastport Early Learning Center, two schools that have been the hardest hit by student illness this year, said interim superintendent Carla Iacona. Vaccinations are planned for Edgewood Elementary on Friday for all students who have turned in their permission slips.

Also, the superintendent search committee is planning to hold two open meetings, one for school staff and one for the public, to provide comment on what they hope the committee will look for in a new superintendent, Kintzele said. Those meetings will be announced soon.

Posted by: Dave Nov 12 2009, 11:25 AM

QUOTE
Also, the superintendent search committee is planning to hold two open meetings, one for school staff and one for the public, to provide comment on what they hope the committee will look for in a new superintendent, Kintzele said.


How about hiring someone who wasn't being run out of town on a rail from their previous position? That might be a good start.

Didn't someone say in a thread on here that superintendents contracts typically are for three years, with some stupid automatic renewal if not cancelled long in advance? Times they are a changing -- how about making the next super an "at-will" employee?

Posted by: southsider2k9 Nov 12 2009, 11:56 AM

QUOTE(Dave @ Nov 12 2009, 11:25 AM) *

How about hiring someone who wasn't being run out of town on a rail from their previous position? That might be a good start.

Didn't someone say in a thread on here that superintendents contracts typically are for three years, with some stupid automatic renewal if not cancelled long in advance? Times they are a changing -- how about making the next super an "at-will" employee?


They can't. That is Indiana state law.

Posted by: Dave Nov 12 2009, 07:43 PM

Well, nuts.

Who had that stupid idea?

Posted by: southsider2k9 Nov 12 2009, 09:58 PM

QUOTE(Dave @ Nov 12 2009, 07:43 PM) *

Well, nuts.

Who had that stupid idea?


I don't know whose brilliant idea it was, but it was referenced during the last Harding extension.

http://www.citybythelake.org/forums/index.php?s=&showtopic=1678&view=findpost&p=15338

Posted by: southsider2k9 Dec 10 2009, 09:32 AM

http://heraldargus.com/articles/2009/12/09/news/opinion/voice_of_the_people/doc4b1ee32aa9d0d020024136.txt

QUOTE
Hinchman should tell us who lobbied with him

Published: Wednesday, December 9, 2009 1:33 AM CST
As someone who works in the Michigan City Area Schools and sees the fear of massive layoffs and service cuts in the school system due to the disastrous decision of the county auditor to certify the outdated 2005 assessments, I am calling on the auditor to ‘name names’ and tell us who urged him to do this.

Michigan City Area Schools stands to lose $8 million from this decision and other government entities stand to lose millions as well. As a city councilwoman in La Porte, I know that my stands and positions are all public.

It’s time that Craig Hinchman tell who pushed him and lobbied him to go with these mistaken 2005 assessments. As elected officials, we need to own up to our decisions and there were several people like County Commission President Barbara Huston and County Council President Mark Yagelski who gave good advice to Hinchman that he should certify the 2006 assessments by the assessor that had been approved by the state. He ignored them.

Instead our rookie county auditor who had only been on the job for six months got pushed around by others. He talked about being threatened with legal action. Who did it, Mr. Hinchman? Name names. Who threatened legal action and pushed you to certify these old, outdated assessments that are costing millions in much-needed tax revenues?

It’s a sad day that not only the Michigan City schools, Michigan City government, the sanitary district and town of Long Beach have had to go to court to get Mr. Hinchman to do his job. Stop protecting certain people Mr. Hinchman. You didn’t do this all on your own. The public has a right to know who stood where on this huge decision and people should be held accountable.

— Andrea Renner

Fourth Ward City Councilwoman,

La Porte

Posted by: lovethiscity Dec 10 2009, 10:35 PM

QUOTE(southsider2k9 @ Dec 10 2009, 09:32 AM) *

http://heraldargus.com/articles/2009/12/09/news/opinion/voice_of_the_people/doc4b1ee32aa9d0d020024136.txt

Andrea Renner better be carefull in accusations of a fellow Democrat. The Party took D. Metheny's Precinct Committee job from him over an issue like this. I think she is Precinct Committee person as well. I would hate to see her go on the Metheny rule.

Posted by: Dave Dec 11 2009, 12:55 PM

QUOTE
Quoting Ms. Renner:
Michigan City Area Schools stands to lose $8 million from this decision and other government entities stand to lose millions as well.


Could someone explain to me exactly how MCAS is losing this $8 million? Is it losing out on federal matching funds (or something similar), or is it just not getting $8 million in property tax dollars from school district property owners?

I've said on numerous occasions that taxes are the price we pay to live in a civilized society, but I want people (and especially elected officials) to realize tax dollars don't grow on trees, either.

And having said that, I freely admit that most of what I know about this issue is what I've read in this thread, so I haven't come to a conclusion as to whether going with the 2005 numbers was a totally boneheaded move or not. But it wouldn't surprise me if the auditor looked at the situation, and decided "This is a freaking mess!" If I was Hinchman, I could imagine being relieved when I heard about the lawsuits. If I was in his shoes, I'd seriously consider getting up in front of the Judge and saying, "This whole situation is a mess, there's no graceful way out of it, and I would welcome an order from this court telling me what the heck I should do."

Posted by: southsider2k9 Dec 11 2009, 02:18 PM

QUOTE(Dave @ Dec 11 2009, 12:55 PM) *

Could someone explain to me exactly how MCAS is losing this $8 million? Is it losing out on federal matching funds (or something similar), or is it just not getting $8 million in property tax dollars from school district property owners?

I've said on numerous occasions that taxes are the price we pay to live in a civilized society, but I want people (and especially elected officials) to realize tax dollars don't grow on trees, either.

And having said that, I freely admit that most of what I know about this issue is what I've read in this thread, so I haven't come to a conclusion as to whether going with the 2005 numbers was a totally boneheaded move or not. But it wouldn't surprise me if the auditor looked at the situation, and decided "This is a freaking mess!" If I was Hinchman, I could imagine being relieved when I heard about the lawsuits. If I was in his shoes, I'd seriously consider getting up in front of the Judge and saying, "This whole situation is a mess, there's no graceful way out of it, and I would welcome an order from this court telling me what the heck I should do."


Basically Hinchman certified old numbers that said the entire county was worth an older total dollar amount, which didn't reflect the run up in prices that was seen in real estate. By going with older numbers that shrunk the total value of LPC so much, all of the pieces that come out of that pie, also go shrunk. For the MCAS, which is the biggest piece of that pie, it meant 8.2 million less dollars than the prior year was what its fixed percentage of the pie was now worth.

Posted by: lovethiscity Dec 11 2009, 06:53 PM

QUOTE(southsider2k9 @ Dec 11 2009, 02:18 PM) *

Basically Hinchman certified old numbers that said the entire county was worth an older total dollar amount, which didn't reflect the run up in prices that was seen in real estate. By going with older numbers that shrunk the total value of LPC so much, all of the pieces that come out of that pie, also go shrunk. For the MCAS, which is the biggest piece of that pie, it meant 8.2 million less dollars than the prior year was what its fixed percentage of the pie was now worth.

And as Michigan City has been declining for 30 some years (population, quality of life) Hinchmans certification would be the right one. Our civic leaders, instead of trying to stop or reverse the shrinking tax base, they have found it easier to just dip into another one of our pockets. This might be the wake up call to them to start serving the community.

Posted by: southsider2k9 Dec 16 2009, 02:13 PM

http://thenewsdispatch.com/main.asp?SectionID=1&SubSectionID=1&ArticleID=27665

QUOTE
MCAS to make tax appeal

Alicia Ebaugh
Staff Writer

MICHIGAN CITY - The Michigan City Area Schools board unanimously voted Tuesday to appeal for an increase in its 2008 property tax levy with the Department of Local Government Finance.

The request is for "emergency relief," as the resolution states, to make up for an up to $9 million shortfall in the MCAS' 2007 budget year. The shortfall would result if La Porte County Assessor Carol McDaniel's 2006 pay 2007 property tax values are not used, instead relying on property tax values from the previous year. That may or may not happen depending on the outcome of separate lawsuits in Indiana Tax Court against the DLGF and La Porte County Auditor Craig Hinchman, who refused to approve McDaniel's figures.

"This is just a safety measure to make sure we can maintain the level of services we offer," Interim Superintendent Carla Iacona said.

Due to this property tax-value dispute, the school district would stand to lose more than $8.2 million from its budget for 2007, money that already has been spent for expenses that year, Iacona said. The school corporation expects shortfalls from other sources of about $800,000 to occur as well.

Also at the meeting, the board by a 5-1 vote approved a $17,000 payment to Beth Henkel, attorney for the board and MCAS, in its case against Hinchman and the DLGF. The payment is for her work on behalf of all plaintiffs in the case, including the city of Michigan City and the town of Long Beach, since she was hired in mid-October, Board President Jim Kintzele said.

"We will bill the other parties for their share of the court costs," he said. "We are each paying our share according to how much money we stand to lose, and we stand to lose the most."

School Board member Beryle Burgwald cast the lone dissenting vote against the payment, since $6,000 of that was for work on a "friend of the court" brief filed in McDaniel's case against Hinchman.

"I am uncomfortable with the way we are proceeding with the tax lawsuit. I said from the beginning I didn't want our case to be tied to Carol McDaniel's, but that is what is happening," Burgwald said. "It has been suggested that we may have to consolidate the two cases."

McDaniel also is suing Hinchman and the DLGF for not approving the property tax assessments she put forward. Board member Don Dulaney said the brief, filed last week in tax court, was not an "endorsement" of McDaniel, but rather another avenue to reiterate the school district's interest in not losing any money.

"It presses our position that the auditor took action outside of his realm of authority, which is causing us loss," Dulaney said.

Kintzele said even if the two cases were put together, it would probably not hurt the school district.

"If the assessor wins her case, we'd automatically win ours," he said. "Sometimes, we have to make friends with people we don't like to hang around with all the time. The end result is $8 million."

In other business, a resolution to oppose the realignment of the South Shore tracks to the south side of 11th Street was indefinitely tabled.

"Nothing's been decided," board member Bill Greene said. "It's putting the cart before the horse."

Burgwald, who introduced the resolution, cast the only vote against the resolution being tabled.

Posted by: southsider2k9 Dec 31 2009, 02:12 PM

http://thenewsdispatch.com/main.asp?SectionID=50&SubSectionID=75&ArticleID=27938

QUOTE
Pink slips ready for school employees
I have friends who teach in the Michigan City Area Schools who tell me pink slips may be going around in the next month to literally hundreds of school employees because of the possible loss of $8 million in tax revenue due to the assessment controversy.

It is just plain wrong that one county commissioner, Michael Bohacek, and County Auditor Craig Hinchman have pushed so hard for the 2005 assessments, which will cost Michigan City Area Schools that $8 million.

The county assessor's 20006 assessment, on the other hand, were approved by the state, and yet Mr. Bohacek has directed the county attorneys to go into court and try to get the outdated 2005 assessments approved instead.

Teachers and employees in Michigan City schools who stand to lose their jobs need to let Mr. Bohacek know how they feel. I don't care how much he dislikes the assessor. Personal vendettas have no place in government, and now his insistence and that of Mr. Hinchman on using these old, outdated assessments is going to cost our teachers and school employees dearly, and in the end it's the school kids who will lose the most.

Barbara Dodge

Michigan City

Posted by: JHeath Dec 31 2009, 02:30 PM

Hold on a second...Bohacek has nothing to do with this suit. That letter reeks of a political ploy against his reelection campaign.

Posted by: southsider2k9 Jan 6 2010, 02:25 PM

http://thenewsdispatch.com/main.asp?SectionID=50&SubSectionID=75&ArticleID=27969&TM=55350.3

QUOTE
Stand up to lakefront bullies; save teachers' jobs
Tom Labadie's letter ["Will McDaniel be removed?" Dec. 23] calling again for Carol McDaniel's ouster makes no sense unless he's siding with the beach millionaires who want the outdated 2005 assessments approved. It looks to me as if Carol McDaniel and her legal fight to approved the 2006 assessments is the only thing standing between teachers in Michigan City and big-time layoffs.

It's interesting that when push came to shove all those governmental entities like Michigan City Area Schools, Long Beach and the city of Michigan City have all filed suit to try to get McDaniel's 2006 numbers approved. The 2005 numbers being pushed by the beach millionaires and their toadies in government like Commissioner Bohacek and Auditor Hinchman would cost millions in lost tax revenues and mean layoffs and reductions in public services.

Doesn't sound like we should oust McDaniel. Sounds like she deserves a medal for standing up to these rich bullies on the lakefront and trying to do the right thing!

Carol Holifield

Mill Creek


http://thenewsdispatch.com/main.asp?SectionID=50&SubSectionID=75&ArticleID=28023

QUOTE
School attorney going beyond board's intent
In response to Carol Holifield ["Stand up to lakefront bullies; save teachers' jobs," Sunday], I do not think the Michigan City Area Schools went to court over the assessment issue to give County Assessor Carol McDaniel some undeserved credibility. McDaniel is a pitiful political hack whom the state has pronounced unfit to hold office. She deserves not the medal Holifield would award her but, instead, the boot.

I do not wish at all to sound conspiratorial, but the real reason why the attorney hired by the school-city and other local governmental units took our case to the State Tax Court and then filed a "friend of the court" brief on behalf of McDaniel in her spite suit against the auditor is, as of yet, unknown - though these moves were contrary to the original consensus among her clients. We do know that even before she was hired (and numerous times thereafter) the attorney conferred with McDaniel's attorney about combining the two cases - again, contrary to the original consensus. The amicus brief alone has cost taxpayers $6,000.

As our own suit drag$ on, I am still of the opinion that it would've been far less costly had we gone into a trial court locally to seek, 1, a writ of mandamus to force the auditor to perform the duties of his office, or, 2, an action in quo warranto, whereby the auditor would have to show the court - if he could - what specific statutory provision authorized him to do what he did.

Beryle Burgwald

Member

School Board

Posted by: Ang Jan 6 2010, 09:49 PM

That guy has a way with words!

Posted by: southsider2k9 Jan 7 2010, 01:19 PM

http://thenewsdispatch.com/main.asp?SectionID=50&SubSectionID=75&ArticleID=28076&TM=51429.35

QUOTE
Stimulus money available for schools?
As I understand it because of the property tax structure the Michigan City Area Schools may be going to be several million dollars short for the upcoming school year. This may mean a loss of teachers and supporting staff. Certainly this will have a negative impact on all of the students.

President Obama has stressed many times that dropping out of school was not an option. To compete in the global economy we must graduate top notch people from our high schools and universities.

To enforce his belief in his message, the president allocated $1.5 billion in the stimulus package for education. My question is, where are those dollars? Where is Indiana's share and how has it been allocated? Has it gone in the general fund to be used at the discretion of our esteemed governor? If I were a member of the teachers union I would be asking some tough questions.

Dan Nieding

Michigan City




Posted by: dawn Jan 7 2010, 10:30 PM

QUOTE(southsider2k9 @ Jan 7 2010, 01:19 PM) *

http://thenewsdispatch.com/main.asp?SectionID=50&SubSectionID=75&ArticleID=28076&TM=51429.35

According to a recent press release by way of Arne Duncan and President Obama, a large sum of that money is going into STEM educator training. It seems that they believe the old way of teaching is not working and not preparing our kids for the "global environment" Once again the money is going to go into the hands of the Universities, publishing companies and the hands of those already educated. Math and Science teachers are the ones to receive grant moneys to go back to school. Minorities will be targeted.

I think as we lament over the large shortfall in our education systems, we must identify a few things. Indiana is facing a 300 million dollar shortfall in the area of education. Gov. Daniels can decide where to make the cuts in education without any permission, if you will from congress. So keeping that figure in mind. We all whine because there are not the dollars. We say we are concerned about our kids futures, well it is all of our futures. But yet, we have no problem supporting entertainment productions such as Avitar (coincidentally it cost 300 million to make). Quality education costs. Maybe we have all had a relatively free ride for too long. Maybe, it is time for us to put our money where our Avitars are...

President Obama, Gov. Daniels, Tony Bennett, (the list goes on) cannot get blood out of a stone. It is time to ante up. Suing the auditor will hold the system accountable, but it hardly solves the problem. Even with the tax money from the county, it could still fall short from the state. Cuts are coming, so just like I will more than likely fill up my car to take a road trip whether the gas is $2.35 or 4.35, so it must be that we have to do what we have to do to educate our future.

(oh I could go on, and on, but you get the idea, wink.gif

Posted by: praterteaches Jan 16 2010, 09:55 AM

QUOTE(dawn @ Jan 7 2010, 10:30 PM) *

According to a recent press release by way of Arne Duncan and President Obama, a large sum of that money is going into STEM educator training. It seems that they believe the old way of teaching is not working and not preparing our kids for the "global environment" Once again the money is going to go into the hands of the Universities, publishing companies and the hands of those already educated. Math and Science teachers are the ones to receive grant moneys to go back to school. Minorities will be targeted.

I think as we lament over the large shortfall in our education systems, we must identify a few things. Indiana is facing a 300 million dollar shortfall in the area of education. Gov. Daniels can decide where to make the cuts in education without any permission, if you will from congress. So keeping that figure in mind. We all whine because there are not the dollars. We say we are concerned about our kids futures, well it is all of our futures. But yet, we have no problem supporting entertainment productions such as Avitar (coincidentally it cost 300 million to make). Quality education costs. Maybe we have all had a relatively free ride for too long. Maybe, it is time for us to put our money where our Avitars are...

President Obama, Gov. Daniels, Tony Bennett, (the list goes on) cannot get blood out of a stone. It is time to ante up. Suing the auditor will hold the system accountable, but it hardly solves the problem. Even with the tax money from the county, it could still fall short from the state. Cuts are coming, so just like I will more than likely fill up my car to take a road trip whether the gas is $2.35 or 4.35, so it must be that we have to do what we have to do to educate our future.

(oh I could go on, and on, but you get the idea, wink.gif




My understanding of this problem is that if the lawsuit is successful, than only minor cuts will need to be made. Does anyone know when this lawsuit is going to be heard in court?

Posted by: southsiderMMX Jan 16 2010, 11:02 AM

QUOTE(praterteaches @ Jan 16 2010, 09:55 AM) *

My understanding of this problem is that if the lawsuit is successful, than only minor cuts will need to be made. Does anyone know when this lawsuit is going to be heard in court?


The last number that slipped out was somewhere between $800k and a million dollars.

Posted by: kharris Jan 17 2010, 10:44 AM

QUOTE(praterteaches @ Jan 16 2010, 09:55 AM) *

My understanding of this problem is that if the lawsuit is successful, than only minor cuts will need to be made. Does anyone know when this lawsuit is going to be heard in court?

The tax court judge has ordered the parties to sit down and see what they can do to work things out. Don't know if an actual hearing date has been set.

Posted by: southsiderMMX Jan 19 2010, 01:09 PM

http://thenewsdispatch.com/articles/2010/01/19/news/local/doc4b528eef9d9e2553193129.txt

QUOTE
Compromise not accepted

By Alicia Ebaugh
Staff Writer
Published: Sunday, January 17, 2010 4:16 AM CST
MICHIGAN CITY — A compromise proposed by county officials to solve La Porte County’s property assessment issues for the 2006-pay-2007 tax year wasn’t accepted by Michigan City Area Schools and other parties because it wasn’t constitutional, their attorney said.

“The judge told us we need to talk about these things in October, and we have been. But there are so many continued problems with the assessed values that we think this does require a judge’s decision,” said Beth Henkel, the Indianapolis attorney who was hired to represent MCAS, Michigan City and Long Beach in their lawsuit against the Indiana Department of Local Government Finance and La Porte County Auditor Craig Hinchman.

The compromise, which County Commissioner Mike Bohacek said was presented at a public meeting with the DLGF in mid-November, would have increased most of the county’s 2005-pay-06 property assessments by about 25 percent using the Office of Federal Housing Enterprise Oversight index. Blue Chip Casino, Lighthouse Place Premium Outlets and NIPSCO would have remained at the assessed 2006 values.

“There are several problems with applying that rate across the board,” Henkel said. “You really don’t have a trend here. There are many properties where their values have gone up much higher than 25 percent, but others have gone down, particularly in the center of (Michigan) City.”

It also seemed problematic to use the 2006-pay-2007 values for only the three highest-valued properties in the county, Henkel said. The 2006-pay-2007 values of those properties were each at least $100 million higher than the previous assessed values.

The solution would be unconstitutional, she said, because the tax rates of local taxing jurisdictions like the school district and the city need to be based on properly assessed property values.

“Our real concern is that this would not be the solution taxpayers would expect,” Henkel said.

Bohacek admitted the plan was a “D-minus solution,” but said it was better than using the faulty 2006-pay-2007 numbers.

“It would trend forward the 2005 assessments, which are basically based on property values in 1999,” he said. “Property values have gone way up since then.”

It also would have recovered most of the $8.2 million budget shortfall MCAS would experience if 2005-pay-2006 data was used instead, he said.

School Board President Jim Kintzele was not available for comment on the matter as he was out of town.

Michigan City attorney Chris Willoughby, who represents the county in the suit, would not comment on the compromise.

Posted by: southsiderMMX Feb 1 2010, 09:35 AM

http://thenewsdispatch.com/articles/2010/01/30/news/local/doc4b63bb6e238f4481252329.txt

QUOTE
Issue in tax court under advisement

By Alicia Ebaugh
Staff Writer
Published: Saturday, January 30, 2010 4:16 AM CST
INDIANAPOLIS — A motion to intervene has been taken under advisement in the Michigan City Area Schools tax court case attempting to force La Porte County Auditor Craig Hinchman to certify La Porte County’s 2006-pay-2007 property assessment values.

A hearing on the motion was held in Indianapolis on Thursday afternoon. Judge Thomas Fisher told participants he would rule on the motion when he came to a decision, said Thomas Atherton, attorney for Long Beach resident Bill Wendt, who petitioned to intervene in the case.

There was no indication when his decision could be made, Atherton said. Fisher has still not ruled on a motion to dismiss La Porte County Assessor Carol McDaniel’s tax court case against Hinchman on the same issue. That hearing was Dec. 18.

Michigan City and Long Beach are participating in the lawsuit brought by Michigan City Area Schools against Hinchman and the Indiana Department of Local Government Finance in hopes of recovering property tax revenue the entities budgeted for and already spent. MCAS faces an $8.2 million budget shortfall if Hinchman’s 2005-pay-2006 certified numbers are used instead, and the other entities also stand to lose a significant amount of money.

In his motion, Wendt claims the use of 2006-pay-2007 assessed values sought by MCAS, Michigan City and Long Beach shouldn’t be granted because the values are flawed. Wendt’s motion claimed an individual assessment appeal cannot provide complete relief because the faulty 2006 assessment data would create unequal tax rates. Tax rates for local taxing entities, including school districts and cities, are based on total assessed property value.

If the 2006-pay-2007 assessment values are accepted, Wendt will have to pay the ascribed taxes on his Lake Shore Drive home, which amount to more than $67,000.

Wendt has been involved in challenging the legality of the county’s 2006-pay-2007 property assessment data since it was first produced by Nexus Group, which was hired by the county to do the assessments. He first filed an open-records lawsuit in March 2008 requesting McDaniel’s office provide him with assessment information for thousands of properties in the county for the past 10 years. Wendt then hired a statistical analyst to comb through the data, and the analyst found serious flaws that caused the DLGF to issue an order of reassessment in May 2008. But the problems that pervaded the original assessments were not corrected in the reassessment, Wendt claimed in his motion. He claimed those problems could be proved by an independent accountant’s review of the reassessment, as well as an August 2009 memo issued by DLGF commissioner Timothy Rushenberg, which detailed unsubstantiated lowering of certain assessed property values and found the county and Nexus Group failed to comply with certain aspects of the reassessment.


Posted by: southsiderMMX Feb 4 2010, 01:48 PM

http://thenewsdispatch.com/articles/2010/02/04/news/local/doc4b6a52037a8bc164893490.txt

QUOTE
Judge wants resolution on assessment suits

By Alicia Ebaugh
Staff Writer
Published: Thursday, February 4, 2010 4:18 AM CST
INDIANAPOLIS — All the participants in two lawsuits involving La Porte County’s property assessment debate are still being encouraged to come to a resolution together by Indiana Tax Court Judge Thomas Fisher.

A conference was held Jan. 28 in Indianapolis for all attorneys involved in the cases — La Porte County Assessor Carol McDaniel’s case against La Porte County Auditor Craig Hinchman and the Indiana Department of Local Government Finance, as well as that of Michigan City Area Schools, Michigan City and Long Beach’s case against Hinchman and the DLGF.

Both cases seek to force the certification of 2006-pay-2007 property assessment values.

According to court records, the attorneys said negotiations were still taking place. Fisher asked them to continue talks and report their progress back to the court on or before March 3. If the parties think negotiations would progress better with a mediator, they can tell the court at any time and appropriate action will be taken, Fisher wrote in his order.

MCAS, Michigan City and Long Beach are now also named parties in McDaniel’s suit, according to court records, as well as the La Porte County Council and County Commissioners, La Porte County Treasurer Nancy Hawkins, the town of Pottawottamie Park, the Michigan City Redevelopment Commission and the taxpayers of La Porte County.

Although no decision has been posted by Fisher on the motion to intervene in the MCAS case against Hinchman and the DLGF by Long Beach resident Bill Wendt, he and his wife, Dalia, are now listed as parties on that suit.

Posted by: mcstumper Feb 4 2010, 02:24 PM

QUOTE(dawn @ Jan 7 2010, 10:30 PM) *

President Obama, Gov. Daniels, Tony Bennett, (the list goes on) cannot get blood out of a stone. It is time to ante up. Suing the auditor will hold the system accountable, but it hardly solves the problem. Even with the tax money from the county, it could still fall short from the state. Cuts are coming, so just like I will more than likely fill up my car to take a road trip whether the gas is $2.35 or 4.35, so it must be that we have to do what we have to do to educate our future.


You feel like the education system is being squeezed, but I tend to disagree. I believe it is the taxpayer who is getting squeezed by public education. Interesting read:
http://www.heritage.org/research/Education/bg2179.cfm

Posted by: Dave Feb 4 2010, 03:44 PM

So, let me see if I have this clear, Stumper. You're advocating spending less on public schools? (I just skimmed the article -- advocates less federal money for schools and transferring more of the financial responsibility to state/local. even though fed dollars are less than 10% of public school funding, and throws in a remark about "school choice," which is at best a really lame attempt at humor.)

Show me a non-Libertarian* candidate for office advocating cutting funding to public schools and I'll show you the guy who's going to lose an election.

*Libertarians losing elections is pretty much a given.

Posted by: mcstumper Feb 4 2010, 05:32 PM

QUOTE(Dave @ Feb 4 2010, 03:44 PM) *


Show me a non-Libertarian* candidate for office advocating cutting funding to public schools and I'll show you the guy who's going to lose an election.



I agree. To stand up against the teacher's union and the machine that is the public school monopoly is political suicide. It's funny that people are so concerned with the Supreme Court's recent decision on campaign finance and the lobbying power of "big corporations" when its these political juggernauts that have been forcing us down the wrong path for decades. It's too bad that you are so dismissive of school choice. A combination of school choice and vouchers would introduce competiton to an environment that badly needs it.

Posted by: Dave Feb 4 2010, 06:01 PM

Teachers' Unions and all those pesky parents with kids in the public school system, that is. If you could just keep them from voting....

As for school choice and vouchers, I've always thought that's a bad idea. I can't see vouchers for parochial schools (unless you have no problem with madrasahs, or schools teaching Wicca or Vodun, getting them too). Public schools will always have one distinct disadvantage over private schools -- they have to take everyone. Private schools can be more selective about who they let in, and they have greater freedom when it comes to pitching problem kids out.

Posted by: Mack Feb 4 2010, 07:18 PM

QUOTE(Dave @ Feb 4 2010, 06:01 PM) *

Teachers' Unions and all those pesky parents with kids in the public school system, that is. If you could just keep them from voting....

As for school choice and vouchers, I've always thought that's a bad idea. I can't see vouchers for parochial schools (unless you have no problem with madrasahs, or schools teaching Wicca or Vodun, getting them too). Public schools will always have one distinct disadvantage over private schools -- they have to take everyone. Private schools can be more selective about who they let in, and they have greater freedom when it comes to pitching problem kids out.


I agree with you 100% Dave.
There will always be a "market" for not living near this , that , or them. It will always demand a higher price.
Education should not be a part of that market force. (or farce). If I want a school that can easily get rid of "them" or not deal "those"whatsoever , I should have to pay a market premium for getting away... not force the entire community into paying tax dollars for "market" like schemes.
A Great Education should be available to all.

Posted by: lovethiscity Feb 4 2010, 09:27 PM

QUOTE(Mack @ Feb 4 2010, 07:18 PM) *

I agree with you 100% Dave.
There will always be a "market" for not living near this , that , or them. It will always demand a higher price.
Education should not be a part of that market force. (or farce). If I want a school that can easily get rid of "them" or not deal "those"whatsoever , I should have to pay a market premium for getting away... not force the entire community into paying tax dollars for "market" like schemes.
A Great Education should be available to all.

It is very scary to agree with Dave 100%, but I also agree with him on this. What if we were to place an importance on the next generation. Let us say someday this group of youngsters will be taking care of us. Once they are in charge, it would be nice if they make better desicions than our generation has to this point. If we made education a commodity with a value called our future. We might come up with a pay structure for teachers that would eliminate the need for the pesky unions. Is anbody worried? Soon the kids that have not figured out how to keep their pants up, will running the show and they have been under our care.

Posted by: Ang Feb 4 2010, 10:31 PM

Having lived in a community with open enrollment (school choice), I have to go with Stumpie on this. Being able to choose what public school your child goes to is wonderful. For one, it eliminates the child from having to change schools if a person moves. It gives children consistency and security in their learning environment which, in turn, helps them learn better. Yes, some schools are better than others and so everyone would want to attend the "good" school. However, it causes the schools that are "bad" to reevaluate themselves (specifically the principals at the schools) and try to improve. Additionally, the administration can see what schools are problem schools and take measures to improve them.

Concerning the other half of this discussion, people pay for private school for a reason. They feel their children get a better education there. I don't know if this is true or not, but providing "vouchers" for private school more or less de-privatizes them so I have to take Dave's side on that particular issue.

Posted by: southsiderMMX Feb 11 2010, 08:51 AM

http://www.thenewsdispatch.com/articles/2010/02/11/news/local/doc4b73915933d84740674359.txt

QUOTE
McDaniel lawyer attends MCAS meeting

By Deborah Sederberg
Staff Writer
Published: Thursday, February 11, 2010 4:18 AM CST
MICHIGAN CITY — Carol McDaniel’s lawyer attended Tuesday’s Michigan City Area Schools board meeting to see if any mention was made of the lawsuit against La Porte County Auditor Craig Hinchman.

MCAS, the city of Michigan City and the town of Long Beach have filed suit against Hinchman to force him to certify La Porte County’s 2006-pay-2007 property assessments.

The Department of Local Government Finance is named in the suit as well. If Hinchman’s figures are used, instead of those presented by County Assessor McDaniel, the MCAS will face a budget shortfall of $8.2 million.

The board made no mention of the suit at the meeting.

Mark GiaQuinta, who is representing McDaniel, told the board he is president of the Fort Wayne Community Schools board. He also said, “I really enjoyed being at your meeting.”

Posted by: southsiderMMX Mar 4 2010, 09:13 AM

http://www.thenewsdispatch.com/articles/2010/03/04/news/local/doc4b8f410e6de59657481016.txt

QUOTE
Kora seeks solution to tax issue

By Alicia Ebaugh
Staff Writer
Published: Thursday, March 4, 2010 4:19 AM CST
LA PORTE — As lawyers representing several parties in La Porte County’s property assessment lawsuit were set to file status reports on the case Wednesday, a Michigan City Area Schools board member appealed to County Commissioners on Tuesday to help them find a “political solution” out of court.

“I know there is a lot of history and hard feelings about this issue, but if you can persuade everybody to leave their egos at the door ... and focus on the tremendous harm and the tremendous damage that would result from further delays and inactions, I am hopeful you will find enough good will and common sense among people to find a quick resolution,” Dr. Vidya Kora said.

Kora spoke at Tuesday’s County Commissioners meeting, asking commissioners to meet with Assessor Carol McDaniel, Auditor Craig Hinchman and County Council members to bring about a quick resolution.

“Michigan City Area Schools is in a precarious financial situation,” Kora said. “I believe that the legal process is slow and expensive, and it is because of the impending financial catastrophe faced by our school system and by our community that I am here asking for your help.”

The school district faces a shortfall of $8.2 million if 2006-pay-2007 property assessment values for the county are not used, and it has sued Hinchman, who refused to certify the numbers and insisted the county use 2005-pay-2006 assessments instead.

“This will result in layoffs, eliminations or scaling down of vital programs to educate our children,” Kora said. “This will have a significant adverse effect on the education in our community and our economic future. We have spent over $400,000 this past year in interest expense because we had to borrow money to pay our expenses. Thousands of dollars have been spent in legal fees by the county, the school system and by the other taxing units. This is absolutely insane.”

Kora said the state Department of Local Government Finance already approved 2006-pay-2007 assessments, and that using them would solve the problem faster. But he said it wasn’t the only acceptable solution, when asked by Commissioner Mike Bohacek.

“How it happens doesn’t matter to us,” Kora said.

“I agree that this needs to be solved quickly,” Bohacek said. “I have a daughter in the Michigan City schools, she is in a special needs section, and this is important to me, too, because her program has the potential to be cut instantly. There has to be a compromise we can come to.”

Beth Henkel, MCAS attorney in the case, said Wednesday talks are continuing, but no solutions have emerged. Indiana Tax Court Judge Thomas Fisher has told all attorneys in the case a mediator can be assigned, if necessary, according to court records.

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