To raise taxes or not to raise taxes — that is the question for Indianapolis city leaders as they head into the next budget cycle.
Why it matters: We’re in the midst of financial uncertainty and heading toward possible recession.
- While cuts in services, particularly to social safety net programs, could be devastating to those who rely on them, local tax increases could strain already cash-strapped families and erase any property tax savings.
Driving the news: Lawmakers last month passed a property tax overhaul that will dramatically cut how much cities bring in from property taxes, a major source of revenue for Indy.
- That leaves local leaders to decide whether they want to cut services, try to find efficiencies within city government, raise taxes to make up the difference or some combination of the three.
What they’re saying: “For right now, we’re not talking about tax increases,” Vop Osili, president of the Indianapolis City-County Council, said last week. “We’re going to see what we can possibly do with minimal negative impact on our constituents.”
Yes, but: “Money doesn’t grow on the trees in our beautiful parks,” Councilor Dan Boots told Axios, when asked whether the council would need to raise the local income tax…