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Friday, August 25, 2006

Ind. Decisions - More on: "Appeals court says petitioning process unconstitutional"

"Remonstrances are open to all, court rules: Petitions on bond issues shouldn't be limited to property owners, judge finds." That is the headline to this story today by Richard D. Walton of the Indianapolis Star. The subject is yesterday's Court of Appeals decision in Bruce Jones v. Martha Womacks (access ILB entry here - 3rd decision). Today's story reports:

Property owners should not be the only ones who help decide whether school districts and local governments can issue bonds, the Indiana Court of Appeals ruled Thursday.

The remonstrance practice, which had limited participation to property owners, was exclusionary, the court found, and violated the Constitution. The court said local residents, not just property owners, should be able to participate.
People on both sides of the 2004 remonstrance that sparked the court case hailed the ruling as a break for the public.

"Before it was: 'Well, you're not a property owner so you don't count.' That's wrong," said Carl Moldthan, a longtime opponent of the property tax increases that underwrite the bonds. Now, with more people able to participate, he said, "it will be a lot harder to pass bond issues unless you've got a very good reason." * * *

Thursday's ruling would take effect only after the next legislative session, giving state lawmakers the chance to amend the law to include non-property owners.

At issue in the case was a $200 million bond issue sought by IPS to pay off debt as part of a construction and renovation project estimated to cost more than $800 million.

A side-by to the story explains:
WHAT IS A REMONSTRANCE?

When local government or a school district seeks to raise money through taxpayer-supported loans, the effort can be challenged through a process called remonstrance.

Before property taxes can be raised to pay debt service, several steps must be taken.

First, a notice must be published that tells readers who want to start a remonstrance process that they have 30 days to do so. Then they must collect 100 valid signatures on a petition to trigger a full remonstrance among eligible people living the district.

Then opponents and supporters are locked in a monthlong race to collect the most valid petition signatures. Once the signatures are verified, the side with the most prevails.

The last high-profile example of a remonstrance in Marion County involved the 2004 quest by Indianapolis Public Schools to issue $200 million in bonds. Opponents were unable to collect enough signatures to defeat the proposal.

Posted by Marcia Oddi on August 25, 2006 08:54 AM
Posted to Ind. App.Ct. Decisions