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PETITIONERS APPEARING PRO SE: MELANIE A. CALDWELL LILLIE MAE HUBBARD, CPA Liberty, IN

ATTORNEYS FOR RESPONDENT: STEVE CARTER ATTORNEY GENERAL OF INDIANA JENNIFER E. GAUGER DEPUTY ATTORNEY GENERAL Indianapolis, IN _____________________________________________________________________

IN THE INDIANA TAX COURT
_____________________________________________________________________ MELANIE A. CALDWELL and LILLIE MAE HUBBARD, CPA, ) ) ) Petitioners, ) ) v. ) Cause No. 49T10-0604-TA-41 ) DEPARTMENT OF LOCAL GOVERNMENT ) FINANCE, ) ) Respondent. ) _____________________________________________________________________ ON APPEAL FROM A FINAL DETERMINATION OF THE DEPARTMENT OF LOCAL GOVERNMENT FINANCE _____________________________________________________________________ NOT FOR PUBLICATION March 12, 2007 FISHER, J. Melanie A. Caldwell and Lillie Mae Hubbard, CPA (the Petitioners) appeal the final determination of the Department of Local Government Finance (DLGF) that denied their challenge to the Union County/College Corner Joint School District's (School District) 2006 budget. On appeal, the Petitioners present two issues for this Court's review: I. Whether the DLGF abused its discretion when it determined that the School District could provide group health insurance benefits to its school board members; and

II. Whether the DLGF abused its discretion when it determined that the School District could use its capital projects fund to finance its guaranteed energy savings contract (GESC). FACTS AND PROCEDURAL HISTORY In September of 2005, the School District, through its authorized officers and after the appropriate public hearings, fixed its budget for 2006. The Union County Auditor (Auditor) subsequently issued public notice advising Union County taxpayers of the proposed property tax rates in order to generate the revenue needed to cover (among other things) the School District's budget. On October 28, 2005, the Petitioners filed an objection to the School District's budget with the Auditor. In their objection statement, the Petitioners argued that the proposed tax rates represented a tax rate increase "40% higher than last year, [and] considerably higher than [tax rate increases for] schools in the Indianapolis area. . . . [Our] agriculturally based community of fewer than 8000 people cannot absorb [such] a proposed increase[.]" (Cert. Admin. R. at 10.) Accordingly, "the proposed property tax rates can and must be reduced." (Cert. Admin. R. at 10.) The DLGF held a hearing on the Petitioners' objection on November 23, 2005. On March 2, 2006, the DLGF issued its final determination denying the Petitioners' objection. The Petitioners subsequently filed this original tax appeal. On December 12, 2006, the Court heard the parties' oral arguments. Additional facts will be supplied as necessary.

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ANALYSIS AND OPINION 1 On appeal, the Petitioners assert that the School District's budget

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