There is still a county income tax option which varies greatly. The state gets theirs from sales, excise and income taxes.
The property tax cap curtailed spending by forcing cities, counties, libraries, hospitals and school boards to compete for the capped tax.
Interesting story in my area (SW Indiana), the smallest public school system in the state, built a school addition about 10 to 15 years ago. At the same time a slightly larger private school addition was built about 7 miles away for less than half the cost per square foot. This is due to the inefficient public school requirements forced by the state.
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