Promises, promises: Don't believe taxes will never go
As the old maxim says, “The only certainty in life is death and taxes.” So if a governmental entity tells me it needs the ability to raise taxes, but promises not to raise taxes, I am skeptical.
Health and Hospital Corporation is asking for two things in the referendum. First, HHC is asking to raise your property taxes to pay the mortgage for a new hospital. Second, HHC is asking to raise your property taxes above the 1 percent caps.
In its campaign, HHC is promising that the tax levy is just a formality that is necessary to get a decent rate on the mortgage. HHC assures us that the money from the nursing homes will pay the mortgage, and taxes will not be collected.
Is this likely?
HHC has no obligation to use the nursing home income to pay the mortgage. There is no mechanism to ensure the property taxes will be collected only in the event that the nursing home money dries up. HHC can use the nursing home income on whatever it wishes. HHC can collect the taxes whenever it chooses to do so.
HHC has not been saving up the nursing home income to pay for the building. It has spent the money as part of its annual budget. Is it likely HHC will cut millions from its budget in order to avoid collecting property taxes?
The ability to collect taxes will continue for 30 years. Is it likely the promises of HHC CEO Matt Gutwein will be honored by another Board in five years? Ten years?
A Medicare loophole exists where HHC appears to own, on paper, a privately owned and managed nursing home. This loophole gives both HHC and the private owner millions of dollars annually. Is it likely that Medicare will not close that loophole in the next 30 years?
The HHC Board will never be up for re-election. Is it likely they will keep these campaign promises?
If you think property taxes are already too high, vote no. If you think your property taxes should be capped at 1 percent, vote no. If you think that a new hospital is something we cannot afford right now, vote no.
Jon Elrod
Former State Representative
Indianapolis
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