Monday, August 09, 2010

Marion County Income Tax Revenues To Fall Nearly $50 Million Next Year

The City of Indianapolis will be hit hard be a reduction in state income taxes. State distributions for the CAGIT and COIT local income taxes are expected to be 16% less next year due to declining tax receipts. That will amount to $50 million in fewer revenues. The City's controller earlier said the City would collect as much as $30 million in fewer revenues as a result of dropped income tax receipts. Because state distribution of taxes collected lags by one year, the budget crunch that has already hit the State of Indiana will hit local governments which are dependent on local income and sales taxes for revenues starting with the 2011 budget. Statewide, counties are expected to collect $250 million less in local income taxes next year than it receives this year. The City has already claimed it will receive $20 million less in property tax revenues as a result of the property tax cap law. Suffice it to say the City is going to face severe budget cuts in order to fund basic services without another tax increase.

8 comments:

Wilson46201 said...

Not to worry! Mayor Ballard will simply root out even more "fluff"...

("fluff" certainly was a popular word back in the 2007 election, wasn't it?)

Cato said...

As long as all the Deputy Mayors and equivalents keep making $80,000, as long as we all keep getting taxed when we eat to pay for Payton Manning's salary, as long as the Pacers and Colts receive billions in taxpayer money, as long as Barnes & Thornburg keeps receiving multi-million dollar contracts for needless legal work, as long as cops continue to get free take-home cars on the public dime, all is well in Indy for the people who own the City.

Cato said...

Wilson, Ballard hasn't found much "fluff," has he? He now has more executive staff than Peterson did.

Marycatherine Barton said...

This is such bad news.

artfuggins said...

Mayor Ballard, show me the "fluff"!!

HOOSIERS FOR FAIR TAX said...

FLUFF:
CIB BAILOUT
ARTS COUNCIL
SPORTS CORPORATION
HUMANITIES COUNCIL

HOOSIERS FOR FAIR TAX said...

Oh...and I almost forgot more fluff:

IDI, Indianapolis Downtown Inc.

Had Enough Indy? said...

One day the City is rich and can give the Pacers $33.5 million over the next three years. The next day, we have a budget shortfall.

Does Indy have a 'split personality' when it comes to finances?