Sen. Brandt Hershman, R-Buck Creek, chairman of the Senate Tax and Fiscal Policy Committee, said the protected levy was meant to safeguard bondholders from districts making irresponsible decisions. It had unintended consequences, he said, hitting schools in places still recovering from the recession, which brought steep declines in property values and tax revenues.
“We’re trying to provide them a responsible way to transition to a different fiscal arrangement,” Hershman said.
Maureen Hayden covers the Statehouse for the CNHI newspapers in Indiana. She can be reached at firstname.lastname@example.org. Follow her on Twitter @MaureenHayden.