Council leaves income tax in place for now
VALPARAISO | Four years after voting 4-3 to join the newly established Northwest Indiana Regional Development Authority, the Porter County Council voted by the same margin Wednesday evening to get out.
The council also agreed to stop sending the $3.5 million in annual dues to the RDA, but stopped short of repealing the local income tax that funds both the dues and a reported $8.3 million in property tax relief.
The fate of the income tax will be taken up during the council's next meeting later this month after the options are researched, said Dan Whitten, who joined fellow council members Rita Stevenson, Laura Blaney and Sylvia Graham in supporting the withdraw from the RDA.
When asked by the council whether the law allows the county to withdraw at this time, attorney Scott McClure said there is no clear answer and that the issue likely will end up in court.
RDA board Chairman Leigh Morris, who attempted to encourage the council not to walk away, said the move came so quickly the RDA board has not yet had time to talk about whether it will pose a legal challenge.
The council voted to withdraw after spending an hour and a half listening to 46 people speak out, mostly in favor of the RDA.
Whitten and other council members said their impression is that a vast majority of county residents want out of the RDA and for the council to eliminate the associated tax.
"The polling I get from people is, 'I can't afford these taxes,' " Whitten said, referring to the 50 clients a month he sees these days as a bankruptcy attorney.
Stevenson, who voted to join the RDA four years ago, said she changed her position because the RDA has not done enough to pursue its goals of improving the Gary airport and extending the South Shore train to Valparaiso and Lowell.
A reoccurring concern Wednesday evening was pending state legislation to create a regional transportation district with the power to tax.
Council member Mike Bucko, who joined members Bob Poparad and Karen Conover in opposing the withdraw, said he does not like the idea of a new tax either, but that should not be confused with the RDA.
Among those speaking out in favor of the RDA from the standing-room-only crowd was Iron Workers Local 395 business manager Mike Summers, who said the county leaving the RDA would be an economic disaster.
RDA opponent George Barkley, of Valparaiso, said taxes will hinder, not promote economic growth.
The council's move is not the only headache facing the RDA. The agency confirmed Wednesday that the city of Gary has missed three quarterly due payments totalling $2.63 million. The city reportedly plans to pay all the money sometime this month.
The other RDA members - Lake County, Hammond and East Chicago - are up to date on payments.
Posted in Local on Thursday, April 9, 2009 12:00 am Updated: 2:09 am.
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