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Bloomington Mayor Questions Local Revenue Increase After $22 Million In Federal Relief

Mayor Hamilton on the Zoom call

Bloomington Mayor John Hamilton (Zoom)

Bloomington may not need to raise revenue locally due to the latest federal relief package.

Mayor John Hamilton said he’d try again to increase the local income tax during his State of the City Address last month. He said raising revenue is a structural issue the city needs to face.

Since then, the American Rescue Plan Act was passed by Congress and signed by President Biden. Hamilton said it allocates significant local revenue.

“We don't know all the details, but it may well be that that national stimulus and rescue package will mean we don't need to do immediate local revenue generating because of that,” Hamilton said.

City Communications Director Yael Ksander says Bloomington is allocated $22.27 million in the stimulus package. The City's 2021 operating budget is about $166 million.

Monroe County is slated for $28.79 million, Ellettsville is allocated $1.41 million.

“These are early days, we don't yet have guidance from the federal government relating to expenditures - what they can be used for, what they can't or timing,” Yael said.

Last year’s proposal to raise Monroe County local income taxes failed by a 4 to 5 city council vote in September.

The rescue plan act provides $350 billion to states, counties, and cities for COVID-19 emergency response and economic efforts, including for small businesses, nonprofits, tourism, government services, water, sewer, and broadband infrastructure.

OTHER PROJECTED ALLOCATIONS:

  • Brown Co. $2,927,000
    • Nashville $230,000 
  • Bartholomew Co. $16,248,421
    • Columbus $7,790,000
  • Greene Co. $6,191,075
    • Bloomfield $480,000
  • Jackson Co. $8,578,330
    • Seymour $4,160,000
  • Lawrence Co. $8,799,232
    • Bedford $2,750,000
  • Morgan Co. $13,670,907
    • Martinsville $2,430,000
    • Mooresville $2,040,000
  • Owen Co. $4,033,838
    • Spencer $470,000
  • Vigo Co. $20,759,361
    • Terre Haute $38,230,000

 

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