Indiana's property tax problem is largely the result of good intentions leading to bad outcomes.

For years the state legislature has tried to improve Indiana's property tax system through measures such as trending, reassessment and Senate Bill 1. Some of these were good measures, some were not, but all together they created a system that's almost impossible for the average homeowner to understand.

Instead, all homeowners see is an unexpected, drastic increase in their property tax bill. This increase can be devastating for the elderly living on a fixed income, the retired, and most of us who don't have the means to meet such a demand.

This year's property tax increase was not the result of increased government spending above inflation, or special appeals to the state. It came about due to a shift of taxes from business to other properties -- residential, agricultural and commercial.

This significant increase can be attributed to three tax breaks: inventory taxes, which were eliminated; a new deduction for investing in new equipment; and new means for businesses to calculate credit for local tax abatements.

Was this change necessary? Who was in charge when all of this happened? An Indiana General Assembly controlled by Republicans, under the leadership of a Republican governor, enacted the changes, and now we must face the consequences. It sounds like such a cliché, but tax breaks for businesses at the expense of the average citizen have become a Grand Old Party tradition. However, there are exceptions. DaimlerChrysler will benefit from the breaks for business, but not as much as it probably would like due to the tax increase on its land and buildings.

What's most important is what can be done locally to fix the problem. The General Assembly's only solution so far has been to provide local governments with more taxing options, such as increased income taxes. Other local options are likely on the way. Local officials should consider these options, but should do so carefully, with plenty of input from the taxpayers. When government seeks to help, it can sometimes inadvertently do more harm than good, so our leaders must be cautious in that regard and work together to find creative solutions to lower the tax burden, especially on our most vulnerable citizens.

Unfortunately, there aren't any easy solutions to our property tax problems. In order to cut taxes, we must either drastically cut services or raise money through another tax to make up for the lost revenue. Real people are affected by these changes and, with either choice, the results can be devastating. While none of us want our taxes raised, no one is advocating for cuts in services, either. You won't find many Kokomo citizens who ask for fewer police on the streets, elimination of trash pick-up, less investment in economic development to bring jobs to our city, or slower service in fixing potholes and plowing streets.

To work toward property tax relief, I believe that the city must build broad coalitions with other units of government so that we have increased lobbying power in Indianapolis. The mayor must work well, not only with city council and Howard County officials, but with neighboring mayors. We must reach out to the cities of Logansport and Lafayette, Muncie and Marion, to trade ideas and create solutions to this statewide problem. Along with our fellow cities, we must create close partnerships with state officials. Cooperative relationships with state representatives and senators will better allow the Kokomo taxpayers' voice to be heard in the General Assembly. Many of you will recall that Howard County officials were among the first to go to Indianapolis for help in coping with the significant property tax increases this year. Unfortunately, few in our state capital cared when those in Howard County complained, but later when Marion County and other large counties throughout the state stood up, the state began to take notice.

We also must work with the county, townships, towns and school districts to seek out overlap and duplication of governmental services. There's no reason for the city and county to do the same job if we can save tax dollars by working together. And we must take a new and comprehensive look at the city budget, to re-evaluate every area, and find ways to eliminate overhead and cut down on expenses. Some of these cuts may be small, but most taxpayers will tell you that when it comes to taxes, every dime counts.

Finally, candidates for mayor cannot simply make empty promises to lower taxes or make budget pledges to tow the line. That's not a real solution. It's just telling voters what they want to hear in order to get elected. Unfortunately, the current mayoral administration has not always been candid about the state of the budget, and in the absence of an accountant in the Controller's Office, we have to rely on an outside contract agency to determine the state of the city's finances. Without full, complete access to the facts and figures, it's impossible to say what fiscal shape the city is in. Once Kokomo's next mayor is elected, the city, county and state will need to work together to examine the finances, look at the options, and work with the citizens to make the best of a bad situation.