Latest news with #IndianaGeneralAssembly
Chicago Tribune
3 days ago
- Business
- Chicago Tribune
Wheel tax, income tax boost likely for Porter County as burden of government support shifts
Discussion of the impact of property tax reforms passed by the Indiana General Assembly taxed Porter County Council members' brains Tuesday. 'Understand that nobody up here wants to pass an increase in taxes,' Council President Andy Vasquez, R-4th, said. 'We're stuck between a rock and a hard place.' Putting local government on a property tax diet, something Gov. Mike Braun strongly urged the Legislature to do, leaves two choices: Reduce services or raise income taxes and other taxes to make up the difference. 'We're getting pushed from property taxes to local income taxes,' said consultant Jason Semler, a principal for Baker Tilly Municipal Advisors, as he walked the council through the long, complicated math of the new state law. The result ends up shifting more of the burden of financing local government from businesses to individuals, Semler said. A wheel tax for Porter County is virtually a certainty as a way to get the full amount available in the state's Community Crossings matching grant program. Technically, the wheel tax remains optional, but the new law requires it for the county to receive the full amount of matching grant money. And although the county's income tax rate is the lowest in the state, at 0.5%, that's likely to increase as the property tax revenue shrinks. 'If you have to raise the income tax, this is a good time to do it,' Semler said. 'They're kind of forcing us to increase LIT (local income tax) anyway,' so consider gradual increases to cushion the blow, he suggested. 'We know we're going to need it down the road.' Under the new law, cities and towns with more than 3,500 residents could adopt their own income tax in the future, up to 1.2%. Based on current population statistics, that would include Portage, Valparaiso, Chesterton, Hebron and Porter. If those municipalities enact their own income tax, their residents would be taxed twice – by the county and by the municipality, Councilman Andy Bozak, R-At-large, said. That would be the case for the wheel tax, too. Councilman Jeremy Rivas, D-2nd, speculated that Porter County might eventually see people moving into unincorporated areas from cities and towns to avoid this double taxation. 'Everybody's looking to escape the tax,' Vasquez said. One option might be for the county to work with the municipalities to give them a share of the county's income tax in exchange for not enacting their own tax, Semler said. For Porter County, $3.5 million a year in dues for the Northwest Indiana Regional Development Authority has to come from income tax revenue, so that needs to be factored in. After that, the county can figure out where the income tax revenue should be divvied up. The county has been pondering some important needs for information technology, road repairs and EMS service. Councilman Red Stone, R-1st, said on his way from Portage to Valparaiso, driving on county roads for Tuesday's meeting, his vehicle was bouncing up and down because of the poor road conditions. Porter County's roads are in worse shape than the state average. Among the drawbacks of shifting to more reliance on income tax revenue is that it's less stable. 'If there's a downturn in the economy, we're going to feel it much more than with property taxes,' Semler said. The county shouldn't hoard money, but healthy fund balances are important when revenues plunge but needs increase. Rivas and others blasted state legislators for setting themselves up as heroes for lowering property taxes even as they knew local officials would look like bad guys for raising income taxes to make up for the lost revenue. 'The legislators, this was a disingenuous action they took,' he said. The council has until Oct. 31 to decide what direction to take. 'I think that's why some counties are looking at increasing their income taxes. They know they're going to have to do it eventually,' so they're acting this year so it goes into effect next year, Semler said. Stone said in his meetings with department heads, he's looking for ways to reduce spending. 'I would strongly urge the council to put the work in,' he said. Some funds and areas can't be touched, under state law, but he wants to dig deep to see what can be cut. 'I think this would be a good exercise for the public. If there's places to cut, let us find them,' he said. Bozak disagreed with Stone's approach. 'We don't want to get too much into the weeds,' he said. A better way would be to tell department heads to decide where to make 3% cuts, hopefully not in salaries. That might be the result of cleaning less often or other ideas, Bozak said. 'Let's get in the weeds. Let's look at take-home cars,' Stone said. If there are people taking cars home who don't need to take them home, stop that. 'As far as who's taking cars home and all that, that's the commissioners,' Bozak said. Rivas said the council has been cautious for years, which is why cash balances are high and tax rates are low. 'The reason we are the lowest-tax county is because of the work we put in,' he said. 'I think the rubber's going to meet the road,' Stone said. 'If someone can come up with an extra $7 million for paving the roads, I'm all ears.' 'We are going to have to be very creative and work together the best we can and come up with some solutions,' Vasquez said. Councilwoman Michelle Harris, R-At-large, has high hopes for department heads. 'I think they're going to come up with ways to be so efficient, I think they're going to just wow us,' she said. Vasquez said he would be open to a data center being located in an area already zoned for light industrial, bringing a big boost to the county's tax coffers. 'Like all things, time will tell, and I pray God we will hold the line the best we can,' he said. Semler walked the council through the implications of Senate Enrolled Act 1 to see how Porter County will be affected as the property tax reforms are phased in. 'A lot of these are going to be phased-in impacts, and a lot of the significant impacts are going to hit us two, three years down the road,' he said. The math is long and complicated, but the upshot is that the property tax base will shrink, and as tax rates increase, more and more properties will qualify for the circuit breaker that caps the property's total tax bill. For a single-family, owner-occupied home, that's 1% of the home's value. Rental properties, utilities, assisted living homes and some other types of property have bills capped at 2% of the property's value. 'You can see how those tax bases are going to be greatly reduced' in downtowns and other areas where these properties are concentrated, Semler said. County government loses $1.8 million a year to circuit breaker relief for property owners, Semler said, but that will increase in the future. 'You lose about 3.5% of your revenue because of the circuit breaker cap,' he said. For business personal property, the tax currently begins after the first $80,000 in value. But that's changing, too, with only the value above $2 million being taxed. It's a boon to corporations but not to local government and citizens who will pay more in taxes to make up the difference. Stemler said he expects this new law to result in some discussion about consolidation. 'I can see some small cities and towns throughout the state have some difficulty surviving,' he said. Schools don't get any income taxes under this new scenario, so they'll face difficulties, too. The massive, sweeping changes resulting from the new law have increased demand for advisors like Baker Tilly. 'We don't need a marketing department. We've got legislators,' Stemler said. 'This is not what we prefer to be doing, but we're happy to help out.'
Indianapolis Star
21-06-2025
- Politics
- Indianapolis Star
Indiana State Sen. Bohacek allowed to continue driving while OWI case moves through courts
PORTAGE — Porter County Superior Court 6 Judge Jeffrey Thode granted Indiana District 8 State Sen. Mike Bohacek, R-Michiana Shores, his request to be allowed to continue driving until a decision is reached in his operating while intoxicated case. Thode ordered Bohacek on May 18 to use an ignition interlock device to be installed on his vehicle. That will require Bohacek to blow into a tube for his car to start, but the ignition will not turn if the device detects alcohol on his breath. He's charged in a summons with OWI as a Class A misdemeanor after police stopped him Jan. 24 in Michigan City. Bohacek's alleged blood alcohol level was more than three times the .08 percent limit, but he wasn't arrested right away because the Indiana constitution prohibits state lawmakers from being taken into custody while the Indiana General Assembly is in session, except for treason, a felony or breach of peace. The 2025 legislative session began in early January and ended in late April. Bohacek, a republican from Michiana Shores, represents all of Starke County, most of LaPorte and Marshall counties, and the western edge of St. Joseph County. Thode could have ordered an immediate suspension of Bohacek's license, but he sided with written arguments from defense attorney David Payne that such action would have created 'substantial hardship' on Bohacek and his family. The judge's decision came after he granted a motion from Bohacek to waive his right for an initial hearing in the case. In most cases, defendants appear for their initial hearings and are read their rights and given a verbal explanation of the allegations behind the charges. Defendants are given an opportunity to ask questions before a preliminary plea of not guilty is entered on their behalf by the court. In Bohacek's case, the judge granted Payne's written motion for a preliminary not guilty plea. Thode agreed to preside over the case after all of the judges in LaPorte County recused themselves to avoid any appearance of political impropriety. The Porter County Prosecutor's office is trying the case at the request of LaPorte County Prosecutor Sean Fagan for the same reason. Police were called Jan. 24 to the Panda Express restaurant in the 5200 block of Franklin Street in Michigan City after witnesses described a man stumbling out of his vehicle and appearing intoxicated while ordering food. Officers arrived at the restaurant and were told the man left the restaurant in a 2023 Dodge Charger with an Indiana State Senator license plate attached to it, according to prosecutors, who reported an officer soon saw the vehicle turn right onto U.S. 20. Police stopped him on an accusation of traveling 62 in a 45 miles-per-hour zone, police said. Police described Bohacek as having red, watery and bloodshot eyes, and when asked if he had been drinking alcohol, Bohacek denied it, telling the officer in slurred speech he was coming back from Indianapolis and was short on sleep, according to an affidavit filed with the court. At one point, Bohacek, while still seated in his vehicle, began eating food and consuming a drink but stopped at the direction of the officer, police said. Police said Bohacek later spilled some of his food and beverage over his shirt and pants before refusing a certified roadside blood alcohol test. He was taken to a hospital, where a sample of blood was taken from his arm, police said. The officer gave Bohack a ride home and informed him that a warrant for his arrest would be sought once the legislative session was over, according to a probable cause affidavit, The sample later tested by the Indiana State Department of Toxicology in Indianapolis contained a .283 percent blood alcohol content.
Indianapolis Star
20-06-2025
- Politics
- Indianapolis Star
Braun's power grab over IU silences alumni, harms IU brand
Gov. Mike Braun has attacked Indiana University by replacing three alumni-elected trustees after Republicans in the Indiana General Assembly inserted a special provision in the state budget allowing Braun to select all of its members. Alumni have elected three out of nine trustees for more than a century. Changing this to further Braun and the state legislature's extremist, out-of-touch political agenda is not what is best for IU or the state. Braun claimed the move was necessary, as the alumni election process 'enabled a clique, a few people, to actually determine three board members," ironically deeming that he alone is more qualified than thousands of alumni to know what is best for several major research universities. His claim is disingenuous, at best. The move appears to be a power grab from an uninspiring politician trying to emulate President Trump's recent retribution against Harvard. My IU degree is part of my personal brand and has carried me far in life, including to executive positions in my career and opportunities to serve my community. As an alumnus who has been engaged in matters related to the university for decades, I see Braun's interference at IU as detrimental to that brand. The American Civil Liberties Union recently filed a lawsuit against Braun, claiming the provision in the state budget that specifically targeted Indiana University's board of trustee elections was a form of "special legislation" in violation of the Indiana constitution. I pray for the success of their lawsuit against Braun for his warrantless seizure of all of the trustee positions, and that IU would be protected from further political attacks.
Yahoo
13-06-2025
- Politics
- Yahoo
Indianapolis has a preschool crisis. Give voters a choice to fund it.
When my first son was born, I was flooded with questions: sleep schedules, screen time, how to assemble a car seat without losing my mind. But as he's gotten older, one question has risen above the rest: Will he be ready for school? Like so many parents, I've learned what researchers, educators and employers have known for decades. A child's earliest years are some of the most important. Access to high-quality early childhood education shapes a child's academic success, emotional development and long-term ability to contribute to society. Unfortunately, access to that opportunity is slipping further out of reach for too many families in Indianapolis. Indianapolis Public Schools recently announced it would no longer offer free pre-K starting in the 2025–2026 school year. Families could be asked to pay as much as $570 a month, if they can even find a seat. In a city already struggling with childcare deserts, stagnant wages and learning loss, this isn't just a logistical problem. It's a crisis. This isn't IPS's fault. It's the result of chronic underinvestment in early learning, made worse by outdated state policy. Fewer than 10% of Indiana's 4-year-olds qualify for the state's On My Way Pre-K program. There just aren't enough dollars or options to meet the need. That's why I introduced legislation that would allow local communities to step up where the state has stepped back. And I'll offer it again in the 2026 Indiana General Assembly session. My bill would give counties the ability to hold a referendum to fund early childhood education for 3- and 4-year-olds. If approved by voters, those funds could support a mix of providers: public schools, charter schools, private centers and even churches. Programs would operate under the guidance of trusted partners, like United Way or Early Learning Indiana. It's a local solution to a statewide problem, rooted in community choice and accountability. The idea isn't ideological. It is focused on outcomes. Studies show that for every dollar invested in early childhood education, communities can see up to $12 in return through reduced remediation, lower incarceration rates and higher future earnings. Pre-K isn't a luxury. It's an economic development strategy, a public safety tool and a workforce investment plan, all in one. There's no sugarcoating it: Passing a bill is just the first step in building a universal preschool system. Voters will need to approve it. We will need to recruit teachers, convert facilities and invest in the capacity of current and potential local providers. But these steps are doable, especially with a strong coalition of parents, educators, elected officials and business leaders as advocates. If we want to build a stronger K-12 system in Indianapolis, we have to start by building a stronger foundation. That means making sure every child enters kindergarten ready to learn, regardless of their ZIP code or their parents' income. The path forward is clear. It's practical. It's popular. And it's possible, if we choose to act. Indianapolis deserves a serious plan for universal preschool. Let's give local communities the chance to lead. State Rep. Blake Johnson, D-Indianapolis, represents Indiana House District 100. This article originally appeared on Indianapolis Star: Universal pre-K can come to Indiana. Here's how. | Opinion
Indianapolis Star
13-06-2025
- Politics
- Indianapolis Star
Indianapolis has a preschool crisis. Give voters a choice to fund it.
When my first son was born, I was flooded with questions: sleep schedules, screen time, how to assemble a car seat without losing my mind. But as he's gotten older, one question has risen above the rest: Will he be ready for school? Like so many parents, I've learned what researchers, educators and employers have known for decades. A child's earliest years are some of the most important. Access to high-quality early childhood education shapes a child's academic success, emotional development and long-term ability to contribute to society. Unfortunately, access to that opportunity is slipping further out of reach for too many families in Indianapolis. Indianapolis Public Schools recently announced it would no longer offer free pre-K starting in the 2025–2026 school year. Families could be asked to pay as much as $570 a month, if they can even find a seat. In a city already struggling with childcare deserts, stagnant wages and learning loss, this isn't just a logistical problem. It's a crisis. This isn't IPS's fault. It's the result of chronic underinvestment in early learning, made worse by outdated state policy. Fewer than 10% of Indiana's 4-year-olds qualify for the state's On My Way Pre-K program. There just aren't enough dollars or options to meet the need. That's why I introduced legislation that would allow local communities to step up where the state has stepped back. And I'll offer it again in the 2026 Indiana General Assembly session. My bill would give counties the ability to hold a referendum to fund early childhood education for 3- and 4-year-olds. If approved by voters, those funds could support a mix of providers: public schools, charter schools, private centers and even churches. Programs would operate under the guidance of trusted partners, like United Way or Early Learning Indiana. It's a local solution to a statewide problem, rooted in community choice and accountability. The idea isn't ideological. It is focused on outcomes. Studies show that for every dollar invested in early childhood education, communities can see up to $12 in return through reduced remediation, lower incarceration rates and higher future earnings. Pre-K isn't a luxury. It's an economic development strategy, a public safety tool and a workforce investment plan, all in one. There's no sugarcoating it: Passing a bill is just the first step in building a universal preschool system. Voters will need to approve it. We will need to recruit teachers, convert facilities and invest in the capacity of current and potential local providers. But these steps are doable, especially with a strong coalition of parents, educators, elected officials and business leaders as advocates. If we want to build a stronger K-12 system in Indianapolis, we have to start by building a stronger foundation. That means making sure every child enters kindergarten ready to learn, regardless of their ZIP code or their parents' income. The path forward is clear. It's practical. It's popular. And it's possible, if we choose to act. Indianapolis deserves a serious plan for universal preschool. Let's give local communities the chance to lead.
