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Better-Than-Expected Revenue Means No Pink Slips for County

By Regan McCarthy

Posted August 26, 2009

Monroe County coffers will receive about a million dollars more from the County Option Income Tax in the coming fiscal year.

Council President Vic Kelson said the surprise increase resulted from a mathematical error made on the part of other taxing units within the county.

Kelson said Ellettsville, Bloomington and township officials calculated their tax rates based on an incorrect assessed valuation, thereby reducing their property tax levies, and giving the county a bigger proportion of that tax.

In addition, Kelson says the total receipts to the county went up by about $300,000, combining with a change in the state homestead tax and leading to a $935,000 windfall. That increase means the council can opt for a flat budget, meaning fewer cuts than originally announced.

"There may be some positions left vacant, at this point," Kelson said. "But it certainly appears to me that we can achieve this without any layoffs and that's what's really what's been bothering people the most."

Kelson said a flat budget is still a cut and expects the council will need to spend down the county's general fund during the year to make additional appropriations.

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