Sunday, December 30, 2007


2007 State of Indiana Municipalities Report

Top 8 Increases between FY 2006 and FY 2007

* 92.08% Fuel costs
* 87.76% Employee wages and salaries
* 79.89% Cost of employee health benefits
* 79.41% Cost of living
* 78.77% Cost of liability coverage
* 72.99% Infrastructure needs
* 58.90% Public safety needs
* 50.80% Federal environmental mandates

Source: Department of Local Government Finance

Items having the most Negative Impact on the FY 2007 budget:

* 37.10% Cost of employee health benefits
* 27.96% Fuel costs
* 18.82% Infrastructure needs
* 16.13% Value of city/town tax base
* 16.13% Amount of cash reserves (operating balances)
* 15.05% Tax limiting measures imposed by State
* 15.05% Employee wages and salaries
* 14.52% State distributions (LRS, MVH, FIT, cigarette and tobacco tax, alchol * galonage tax, gaming revenue sharing)
* 10.22% Public safety needs
* 9.68% Cost of liability coverage

Source: Department of Local Government Finance

Employee wages and salaries also increased in 88% of municipalities, and 79% noted an increase in the cost of living and cost of liability coverage. Other cost pressures noted by over 50% of municipalities include infrastructure needs, public safety needs, and federal environmental mandates.

Due to these significant cost pressures, municipal budgets are being strained. To deal with the increasing cost of local government, 60% of municipalities reported a decrease in their cash reserves (operating balances) between FY 2006 and FY 2007, most likely being used to fund these uncontrollable costs.

Freedom of Speech feels that once you add in the additional factors of mismanagement and wasteful spending, the Garner administration has dug a debt hole for the taxpayers of New Albany.