New Albany has been invited to help divide Floyd County’s local income-tax dollars, but Mayor Jeff Gahan fears the exercise could become the first step toward merging city and county government. Floyd County leaders say that is a dramatic misread of a nonbinding panel created to advise the state.
The dispute centers on the new Municipal Unit Strategic Taskforce, or MUST, which was created under Indiana’s latest tax changes. According to WDRB, Gahan’s office says New Albany will keep participating but believes the committee increasingly resembles an attempt to move Floyd County toward a UNIGOV-style consolidation of city and county services.
The state’s own description of the panel is considerably narrower. An Indiana Department of Revenue synopsis says the task force is meant to negotiate a local income-tax distribution agreement, with representatives from the county council and each city and town fiscal office. Any agreement is sent to the Indiana Finance Authority before going to the General Assembly.
Why Gahan Sees A Bigger Threat
Gahan’s objection is not simply about who gets a seat at the table. In a July 8 statement, New Albany City Hall said the city’s controller would attend the initial meeting to understand the process, while warning that New Albany would oppose any proposal that cuts the resources supporting police, fire and emergency services…