July 23, 2014 at 2:10 p.m.

In hindsight, was it a bad idea?

Editorial

Perhaps this wasn't so clever after all.

Gov. Daniels and Indiana lawmakers decided a while back to shift the bulk of funding schools from local property taxes to state sales and income tax revenues.

Faced with a backlash over property taxes, particularly in Marion County, the state's political leaders opted to have school corporations' general funds - the part of the budget that includes teacher salaries - become a state responsibility. At the time, it looked pretty clever.

No tax is popular, but property taxes are particularly irritating because they come as a couple of large bills per year. Taxpayers are more inclined to notice and resent them than the sales tax.

But when the shift was made, something else happened: The general fund moved from a steady, relatively predictable revenue stream to one that's vastly more volatile.

Now, with state tax collections in a slumping economy down 8 percent - some $254 million - from their forecast levels, funding for public education is suddenly at risk.

Something like 48 percent of the state's budget goes to public schools, so it's unrealistic to believe that this sudden drop in state tax collection won't transfer into serious cuts that will be felt in Jay County classrooms.

Local school boards, which saw a huge chunk of their budget authority stripped away when the general fund was picked up by the state, are likely to be handed the unpleasant chore of eliminating jobs, trimming programs, and reducing services.

The old system was far from perfect. It placed far too much burden on property tax payers. But it was predictable and dependable. It also guaranteed that - even in dire economic times - the business of educating our children would be attended to.

And in the months ahead, the old system may be viewed with nostalgia as "the good old days." - J.R.

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