Community leaders and residents at the Bloomington Convention Center to discuss Senate Bill 1.
(Donnie Burgess, WFIU/WTIU News)
Monroe County officials are preparing for potential staff and service cuts due to the property tax bill.
Senate Bill 1 limits the property tax revenue Indiana counties receive by providing relief on property tax assessments. Monroe County is projected to earn about $37 million less in revenue over the next three years, according to the state’s latest fiscal analysis.
Several city and county leaders discussed this impact during a panel discussion Wednesday at the Bloomington Convention Center.
Jody Madeira of the county Board of Commissioners said local governments will have to find the money somewhere else.
“Because the state legislators who supported SB1 were too cowardly — and yes, I choose that word purposefully — to do their jobs, local governments are going to have to raise local income taxes to make up deficits. We’re not going to have a choice,” Madeira said.
The idea of increasing local income taxes was echoed by Bloomington Mayor Kerry Thomson. She said potential staff and social services cuts are possible, while also promising to collaborate with county leaders to preserve as many essential services as possible.
“We cannot do more with less,” Thomson said. “I can tell you that my administration is laser-focused on making sure that we are running a really efficient government.”
Hopi Stosberg, president of the Bloomington City Council, said even if property tax relief works in favor of certain homeowners, the consequences will affect a wide variety of residents.
“If I save that maximum $300 (on my property tax bill), how much more might I spend in other places, even if you exempt the potential of income tax increases,” Stosberg said. “Just think about potential loss of service.”
Peter Iversen, of the Monroe County Council, said he has voted against some salary increases and hiring requests that have been presented this year. The council tabled a proposed increase in the Monroe County Sheriff’s Office salary structure.
Lori Kelley, health administrator for the county’s health department, requested a salary increase for the health services director position.
“I want this council to trust me that I can figure this out,” Kelley said. “Like, one way or another, we got this. We can shift, we can move things around.”
Kelley’s request was rejected by the county council Tuesday night.
Left to right: City council president Hopi Stosberg, county councilmember Peter Iversen, Bloomington Mayor Kerry Thomson, Eric Reedy of Reedy Financial Group, county commissioner Jody Madeira. (Donnie Burgess, WFIU/WTIU News)
During Wednesday’s panel, Iversen said the uncertainty that accompanies losing property tax revenue is the biggest risk facing fiscal bodies. He said the council does not want to make a financial promise that it cannot fulfill in five or ten months.
Hiring freezes and stagnant salaries are also a possible deterrent to Hoosiers who may have been interested in moving to Monroe County.
Eric Spoonmore, president and CEO of the Greater Bloomington Chamber of Commerce, said Wednesday that the county is facing a new problem that it has never had to deal with before.
“A big concern for me which is a decrease in population happening right now in Monroe County,” Spoonmore said. “For the first time in our history, we’re losing population, particularly population that would pay local income taxes.”
Thomson urged residents and community leaders to keep talking and to express ideas on how to combat revenue loss. She said civic leaders would consider holding another panel discussion on property taxes in the future.
