Erin Meyer, Daily Reporter

    GREENFIELD — Local officials are grappling with more bad news about budgets this week. 

    Since the overhaul of the Indiana property tax system by the Indiana General Assembly in 2008, local governments have been bracing themselves for a hit resulting from tax caps on property ranging from 1 percent to 3 percent of the property’s assess valuation. 

    Based on figures computed by the Hancock County auditor’s office, tax reform will cost local governments a lot of money in 2010. 

    In many cases, the budget cuts are deeper than expected. 

    The Legislative Services Agency, which serves as the research arm to the General Assembly, speculated last year that the revenue loss from property tax caps for Greenfield would be $210,000 in 2010. 

    It turns out the official figure for Greenfield is more than twice that: $483,028. 

    “I hope the state is happy now,” Greenfield City Council President Gary Evans said following the regular meeting of the council Wednesday. 

    Some cities, counties, school systems and towns have already made adjustments to their budgets based on early speculation regarding the caps. Others are still struggling to manage them. 

    The Greenfield City Council passed an ordinance recently allowing the city to shift 3 percent of the municipal utility revenues, approximately $900,000, to the general fund to help cover budget shortfalls. 

    But roughly half of that total is already earmarked for a budget reduction ordered by the state earlier this year. 

    The remaining funds will not be enough to completely erase impact from the property tax caps. City council members are determining how much money to give the parks department, police department and others to cover costs for 2010. 

    The reductions range widely. 

    The towns of Cumberland and Fortville will have to deal with budget cuts of $330,000 and $150,000, respectively. 

    Hancock County will have to reduce its 2010 budget by roughly $750,000. 

    Because the state recently assumed responsibility for schools’ general funds, local property taxes now pay for expenses related to school capital projects, debt service, and transportation and bus replacement funds. 

    The impact to Southern Hancock’s budget is approximately $620,000; for Greenfield-Central, it is $793,000; Mt. Vernon’s is $1.23 million; and Eastern Hancock’s is $28,000. 

    Some units of government are seeing less of a hit because most of the taxable property within their taxing districts was not as close to the caps.