By John Byrne, Post-Tribune staff writer
INDIANAPOLIS -- Legislative leaders are looking with disfavor at a proposal to give city leaders in Lake County the power to levy their own income taxes to make up massive budgets shortfalls.
Several Lake County mayors lobbied lawmakers at the Statehouse last week for the ability to enact civic income taxes to recoup some of the tens of millions of dollars in property tax revenue they are likely to lose if tax caps become law.
But as the legislative session entered its final days, Sen. Luke Kenley, R-Noblesville, said he wants to see local government units trim spending before giving them the authority to raise more cash.
"Just to give them more money, without dealing with the whole situation, I don't think is a practical way to do it," Kenley said.
Kenley suggested the proposed "distressed unit" appeal board could ask the governor's office or the General Assembly to give municipalities such power at a later date, if they really need it.
The board is to be composed of four state departments, plus one person each from a city, a county and a school board.
Likewise, House Speaker Pat Bauer, D-South Bend, said he believes the municipal income tax is a nonstarter.
Bauer said Democratic legislators remain concerned property tax overhaul plans designed by Gov. Mitch Daniels and Republicans would hurt low- and middle-income homeowners, underfund schools and imperil police and fire department funding around the state.
But with the session scheduled to end Friday, Bauer said he remains hopeful the parties will find a compromise in time to avoid having to stay for a special session.