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

By Joe Hren

Posted October 17, 2022

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.

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 13^th Avenue, and first responder radios.