By VICKI URBANIK

“Are you in favor of the South Shore extension being brought to Valparaiso, Indiana if in fact it is going to require an additional local tax to either help build the extension or subsidize the service, yes or no?”

That’s the question that the Porter County Commissioners want to see placed on the November ballot, under a proposal made by South Porter County Commissioner Carole Knoblock on Tuesday.

Earlier this year, when state lawmakers were considering legislation on the South Shore extension, all three commissioners endorsed the idea of putting the question to the voters.

Now, with a legislative study commission analyzing possible funding options for the South Shore project in advance of the 2009 session, Knoblock resurrected the referendum idea Tuesday. She made a motion calling on the Porter County Election Board to place the issue on the November ballot. Her motion passed unanimously, with support from Commissioner President Robert Harper and North County Commissioner John Evans.

“The people of this area must be given the right to speak on this issue,” Knoblock said in a prepared statement read at Tuesday’s meeting.

Legally, however, it’s unclear if the referendum question will be allowed.

Both County Attorney Gwenn Rinkenberger and Election Board Attorney Clay Patton said Tuesday that the issue is vague and that they need to research the applicable state statutes.

Patton said that under the state’s new tax law, H.E.A. 1001, referendum questions are required for major public works projects, such as for new schools. He said he doesn’t know yet if the South Shore project would fall under that provision.

If it doesn’t, both Patton and Rinkenberger said they’re not sure if counties in Indiana have the authority to place referendums on the ballot simply at their discretion. Patton noted that up until this year, state statutes allowed referendums on very specific questions, such as the town of Chesterton’s ballot question on whether the town should move to city status.

There will be another referendum question in November for Center and Portage township voters, in which they will be asked if they want to keep their elected township assessor. But Rinkenberger noted that that question was specifically required under HEA 1001.

So what would happen if the Election Board decides against the referendum, going against the commissioners’ wishes? Evans said he believes that the commissioners have the authority to order a referendum, but Rinkenberger said she would need to research if the election board has greater authority on the ballot questions.

The Election Board is likely to discuss this very issue when it meets Tuesday at 2:30 p.m. at the County Administration Center.

Earlier this year, a bill authored by State Rep. Chet Dobis, D-Merrillville, sought to capture a portion of the state sales tax paid in Lake and Porter counties toward the estimated $1 billion South Shore extension to Lowell and to Valparaiso. His bill fizzled, in part because of opposition from non-region lawmakers who favored a local tax instead of redirecting state revenues. Regional lawmakers also were at odds over language that basically would have forced the two counties to remain members of the Regional Development Authority for 10 years.

At least two citizen groups on opposite sides of the issue were formed. And in February, Harper went public with documents he got through an open records request that outlined how some backers of the South Shore extension had planned a public relations campaign and wanted a bill that would give the Northern Indiana Commuter Transportation District the authority to pass a regional tax.

The bill that ended up passing, H.B. 1220, called for a legislative study commission to analyze funding options. That commission is to come up with its report by Nov. 1.

In her statement, Knoblock said she remains opposed to a new income tax for the South Shore and that she feels that the issue might be decided as a “last minute act” on the part of lawmakers. She also noted that Porter County twice has adopted a county income tax. “I was against those and I sure feel we don’t need any more,” she said.

Her statement also says that the state currently provides about a $15 million annual subsidy for the South Shore and that it is estimated that the extended service would require another $10 to $15 million annually.

Knoblock said that even though there are legal questions, she feels that the Election Board should allow a referendum unless it is shown conclusively that it would not be allowed.

Evans, who supported a South Shore referendum shortly after he was appointed to the NICTD Board this year, supported Knoblock’s motion. But he did point out that all public transportation systems are subsidized by the government.

Harper said he believes the referendum would have to be non-binding, since state legislators have the ultimate decision over a South Shore funding source. But at least the referendum would give people a chance to provide input, he said.

Posted 7/16/2008