By Dan Spalding
News Now Warsaw
WARSAW — Kosicukso County Commissioner Sue Ann Mitchell is warning that Kosciusko County taxing units could lose $12 million in revenue if Gov. Mike Braun’s property tax reform package is passed as is.
Mitchell also serves as president of the Association of Indiana Counties and had a chance to discuss the proposal and its impact on services when she testified on Tuesday in Indianapolis.
She was one of three county executives from across the state who testified about SB 1, which would reduce property taxes by capping tax increases at 2-3% each year, and increasing the homestead standard deduction.
All taxing units in Kosciusko County would lose a combined $12 million in revenue in the first year. That would increase to $15 million and $17 million in the two following years. Those figures are available online here.
A fiscal analysis of the bill shows school corporations, cities, towns and counties would take the biggest hits in Braun’s proposal.
“The county’s budget is not bloated,” she said. “But … council is going to have to take a look after April 29 – when all this settles from the legislature – we are going to have to take a serious look at what it has done to us and where it has put us because we can’t just wander on and just live like we did.”
“If you’re cutting $12 million out of all of what we collect – the grand total for all of us – that’s a pretty big deal,” Mitchell said.
On top of that, she said, the legislation does not include any method to replace the lost revenue.
Traditionally, state government seeking to make reductions would engage a study committee that includes local taxing experts, but that’s not the case this year because Braun’s proposal was assembled before he came into office in January.
“I fear that the people who were working on this didn’t know the reality of how things work exactly in the budget process – that’s just my personal opinion,” she said.
Mitchell also had a ‘fireside chat” with Braun while in Indianapolis. While she expressed concerns, she said his replies included broad answers.
She also predicted it appears Health First Indiana funds, which dramatically sought to increase health funding for each county in the past two years, would also likely be reduced.
The legislation would also shift referendums to county election years to ensure everyone affected would have a chance to vote. Some of the referendums currently happen during municipal elections. That tradition, she said has disenfranchised some voters.
