La PORTE — A new income tax is being considered to help bolster the wages of the La Porte County’s police, fire and EMS employees.
La Porte Mayor Tom Dermody, along with public safety representatives, will present information on a Public Safety Local Income Tax (LIT) at the La Porte County Council meeting at 6 p.m. Monday. The public is encouraged to attend virtually.
“We are at a crossroads for public safety to keep our community safe – not only La Porte, not only in the county, not only in Michigan City, but everywhere around,” Dermody said at Monday’s La Porte City Council meeting.
“To me, public safety, life and death, is more important than talking about this LIT tax that 71 of 92 counties have already passed in the state of Indiana.”
The Public Safety LIT, which would be in addition to the county’s .95 percent local income tax, is being explored as a way to address the salaries of EMS and Sheriff’s Office employees.
Under state law, each county can authorize a .25 percent income tax to fund local public safety agencies. Several counties in Indiana, including Starke, Jasper and Marshall, have such taxes to fund their criminal justice facilities.
“We have one of the lowest income taxes across any of the counties. The state average is 1.76 percent. I know I want our public safety to not have to use bicycle helmets when they run into high-risk warrant situations,” Dermody said.
Some local officials, though, are not in favor of a new LIT.
The La Porte County Board of Commissioners passed a resolution in opposition to any increase in the current .95 percent Local Income Tax rate on Wednesday.
Commissioners Sheila Matias and Rich Mrozinski voted in favor of the resolution. Commissioner Joe Haney, who had questioned the legality of Wednesday’s remote board meeting, abstained from voting.
The resolution called any increase unnecessary and cited alternatives that would compensate the county’s workforce.
Matias, reading from the resolution, stated, “This body is strongly opposed to any increases in local income taxes, particularly when there is projected to be a $5.1 billion state surplus by June 30 and state government needs to do a better job of ‘revenue sharing’ with local entities to assist not only with public safety salaries, but other local needs including consideration given to a portion of the surplus dedicated to a ‘Public Safety Trust’ that would generate fund income every year to be shared with local government entities.”
The resolution went on to state that consideration of eliminating the business personal property tax is being given in this session of the Indiana General Assembly, a move that will cost La Porte County government $3.3 million per year.
“And that is unnecessary since Indiana’s business tax climate is already considered one of the best in the country,” Matias said.
The resolution suggested state government provide additional flexibility to use funds in other restricted accounts to assist the General Fund.
“Specifically in La Porte County, our current LIT fund has a balance of $10.3 million, our Emergency Relief Fund has $8 million and there is nearly $7 million in our Major Moves Accounts, and it is necessary for the legislature to direct the Department of Local Government and Finance to restore a measure of ‘home rule’ so that local elected bodies have greater flexibility for inter-fund transfers than currently exists,” Matias said.
The resolution also asked state government to explore alternative forms of taxation such as “financial transaction taxes” – where taxes would be levied on the transfers of certain financial instruments such as stocks, bonds or derivatives; and further research be given to imposing increased taxes on internet gaming.
“The state of Indiana is currently holding a reserve of roughly three quarters of a billion dollars in LIT funds which should be distributed to local entities rather than being hoarded in surplus accounts in Indianapolis,” Matias said.
She stressed that county employees need raises and salaries that provide families livable wages.
“It can’t be a quick fix. It has to be something that is sustainable over time. We need to analyze every fund we have. Do a financial forecast. Have our financial advisors come in and advise us what the impact of ARP and what the impact of infrastructure dollars will be and, long-term, how do we provide salaries that are market wage salaries,” Matias said.
Haney stressed the importance of local governments doubling down on their budgets.
“Last year, the Solid Waste Board, we were able to go through and trim about $90,000 to $100,000 out of that annual budget.
“I would love to see something similar here at the county level to be able to go through and see what we can do to make sure that we’re paying our employees adequately and appropriately as well as if there’s anything we can cut back on and fund that without having to turn to a local income tax increase,” Haney said.
Mrozinski suggested going over the county’s accounts with financial advisor Karl Cender, members of the County Council and the Auditor’s Office.
“There’s some accounts that might have thousands of dollars in them, but they might be very restricted on what you can spend them on. We have accounts that are dry – there’s zero and we have bills to pay. We need to get a handle on that,” Mrozinski said.
© Copyright 2024 LPHeraldDispatch.com