Indiana Fiscal Policy Institute Study

The Indiana Fiscal Policy Institute recently conducted a study concerning the economy in Northwest Indiana. Their findings were presented to the Northwest Indiana Forum. The study, titled Transforming the Economy of Northwest Indiana looked at several economic indicators and offered several recommendations.

The geographic area of the study included LaPorte, Lake and Porter Counties. The research and data gathering consisted of 83 one-on-one interviews with selected groups. These groups included; elected officials, appointed governmental officials, educators, businesses, non-profit organizations and the general public.

A summary of the findings can be found below.

Economy and Jobs
· Since 1978 the manufacturing sector has seen an 18% decrease in jobs
· Since 1978 LaPorte County has lost 5,240 manufacturing sector jobs
· Since 1978 the service sector has seen a 13.3% increase in jobs
· Since 1978 LaPorte County has gained 6,652 service sector jobs

1999 County Civil Property Tax Rates
· LaPorte County 5.7331
· Lake County 12.2492
· Porter County 3.66
· Indiana Average 3.3266

1999 Total County Civil Tax Levy Per Capita
· LaPorte County $ 463.78
· Lake County $ 889.91
· Porter County $ 395.97
· Indiana Average $ 298.10

2000 Total School Year Tax Levy Per Capita
· LaPorte County $ 437.58
· Lake County $ 530.15
· Porter County $ 636.00
· Indiana Average $ 443.56

Number of Governmental Units per County in Indiana
· LaPorte County 51
· Lake County 72
· Porter County 37
· Indiana Average 26

Research Findings
· Economic development competition between tax jurisdictions is intense
· The property tax base has eroded over the past few years
· Property tax rates are the highest in the state

Desired Changes
· Better communication and more cooperation among communities and with county government
· Partnership with not-for-profit and education community
· Clearinghouse of information on education and job training
· Stream-lined county and local government

IFPI Recommendations
· Lower dependence on property taxes
· Identify and adopt alternative sources of economic revenue
· Slow and reduce the rate of spending
· Scrutinize proposals for new governmental units
· Put priority on new economic development
· Identify strategies for economic growth