Analyzing the Past to Prepare for the Future: An Econometric Examination of the Affects of Property Tax Caps on Budgets of the Goshen Fire Department [open pdf - 113KB]
Alternate Title: Analyzing the Past to Prepare for the Future: An Econometric Examination of the Effects of Property Tax Caps on Budgets of the Goshen Fire Department
"In 2010, the citizens of Indiana placed into the constitution a cap on property taxes. The problem is that the Goshen Fire Department has never attempted to forecast the consequences on our budget from these new tax caps. In an effort to determine what impact the caps may have on Goshen Fire Department's budget, Indiana's similar attempt to control property taxes with a tax freeze in 1974 was examined. The 1974 tax freeze was considered for its correlation with the tax caps. The purpose of this research was to identify what affects the 1974 Bowen tax freeze had on the revenues Goshen City received from property taxes and to identify similarities between the tax freeze and the newly imposed tax caps. This information was then used to forecast the possible impact the tax caps may have on the fire department's budget going forward. This research used descriptive literature review and historical research to create an econometric model of the effects of the 1974 Indiana tax freeze on Goshen's revenues. Time series data was gathered from the offices of the Clerk/Treasurer for Goshen and the Treasurer and the Auditor's office for the county of Elkhart, Indiana, for the years 1965 through 2008 to answered the four research questions: 1) Why did the State of Indiana impose a 'property tax freeze' in 1974? 2) How do the tax caps in 2010 compare with the tax freeze in 1974? 3) What affects did the tax freeze have on revenues Goshen received from property taxes? 4) What affects may the tax caps have on the fire department's budget? "
United States. Federal Emergency Management Agency, Learning Resource Center: http://www.lrc.fema.gov/