The bill contains about $700 million in new property relief, along with $250 million in already scheduled relief for 2008 and about $300 million in relief in 2009. The immediate relief should cut most homestead property tax bills by about one-third. It also removes school operating and transportation funding and child welfare funding from local property, shifting the responsibility to the state. "I applaud the governor and the members of the Ways and Means committee for their hard work on this bill," said Rep. Buck. "This is a major piece of legislation that will have a strong impact on economic development in the state." Several elements of the House Republicans' Standards for Success were eliminated or altered in the final bill, such as a state spending cap and a strong referendum process. The bill does not have a state spending cap, and voters would be allowed to vote only on school projects not directly related to classroom learning, such as athletic fields. Although the bill has been changed from its original form, it still contains several elements that House Republicans have fought for. It offers immediate property tax relief, includes caps on property taxation and includes at least some form of public referenda on public spending. "As it moves through the process, I hope we can look at the big picture," Rep. Buck said. "If we are to have economic and population growth in Indiana, we have to continue providing incentives for employees and employers. "This bill goes a great distance to provide affordable housing, which is something we must have if we want employers to come to Indiana. We must look at the big picture. Property taxes are out of control and I hope we provide due diligence as we move this bill through the process." -30-
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