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true true true true true

State Of The City: Bloomington Is Strong, Tax Increase Needed For Sustainability

By Joe Hren

Posted February 21, 2020

State of the City with John Hamilton

Bloomington Mayor John Hamilton gave his fifth State of the City Address Thursday night. (Joe Hren, WFIU/WTIU News)

Bloomington is strong. Budget reserves are good. But the city can’t meet the decade’s challenges without new resources.

That’s the message Mayor John Hamilton gave at Thursday night’s annual State of the City Address at the Buskirk-Chumley Theater.

Hamilton rallied for an initiative he announced during his swearing-in ceremony Jan. 1: a 0.5 percent increase to the local income tax for sustainable economic development.

“Today I hear the call for more,” he says. “I hear young people challenge us to do our part this next decade to become the city and community we want to be.”

Hamilton says Bloomington has the lowest local income tax rate of all seven surrounding counties. After the increase, Monroe County would have the third lowest rate.

Mariachi Perla Del Medio Oeste
Mariachi Perla Del Medio Oeste performs before Hamilton's address. (Joe Hren, WFIU/WTIU News)

The tax would cost $50 annually for every $10,000 of taxed income. Hamilton says that would generate $80 million for the city with another $80 million for the county over the next decade.

“To be sure to invest in change that will produce much more than that in benefits to our lower income residents,” Hamilton says. “Better transportation options, housing options, better energy options, better food options.”

Hamilton would need the support of the city council, county council, Ellettsville council, and Stinesville, though the demographic makeup gives Bloomington City Council the actual majority vote.

Hamilton says he’d like the increase approved by summer so the city can create a transformative Sustainability Investment Fund. He also says he’ll be forming the Green Ribbon Panel by the end of next month to move forward on the city’s green goals.

His speech was themed “Everyone Counts” in reference to the upcoming census.

Hamilton says if one out of every 300 people in Bloomington is missed, the city could lose a million dollars in funding every year.

Census mailings begin in March.

Hamilton's full State of the City Address can be found here.

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