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Terre Haute still feels tax cap impact, approves 8th straight balanced budget

Terre Haute City Hall

Terre Haute was hit hard by the 2010 tax caps and took years to eliminate a multi-million-dollar deficit. (Joe Hren, WFIU/WTIU News)

Terre Haute Mayor Duke Bennett says the city budget is facing the biggest impact ever from the state’s tax cap law.

Indiana limits the taxes local governments can collect on property. Bennett says that means the city will have to forego $15 million additional tax dollars which would have helped fund its $105 million budget.

“We get about $25 million a year in property tax revenue. So, for all our funds that get property taxes, if you had that extra 15 million, you'd have $40 million you're collecting,” Bennett said.

READ MORE: Bloomington council adopts $129M budget for 2023

Terre Haute was hit hard by the 2010 tax caps and took years to eliminate a multi-million-dollar deficit. Still, Bennett says 2023 is the city’s eighth straight year of having a balanced budget.

It includes 4 percent employee raises and more funds for fuel and utility costs.

“Now how do we finish strong for the rest of this year financially and making sure we're doing everything we need to do to collect all the revenue we can and make sure we're only spending the things we need to spend so we have a great finish to this year,” Bennett said.

He says other projects in 2023 are Deming Park pool rehabilitation design work, an overpass project at 13th Avenue, and first responder radios.

Terre Haute Mayor Duke Bennett
Terre Haute Mayor Duke Bennett (Screenshot of Zoom)
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