HAMILTON COUNTY, IN — Mayors Scott Fadness of Fishers and Chris Jensen of Noblesville are grappling with significant budget reductions following the passage of Senate Bill 1, which aims to provide Indiana homeowners with a 10% property tax credit.
Although this initiative has the potential to lighten the financial burden on residents by capping the benefit at $300, it could severely impact local revenues in communities throughout Hamilton County.
“Our cities are in a position where we have to tighten our belts and truly understand what the impacts are,” Fadness said, emphasizing the fiscal challenges posed by the new legislation. He estimates the financial impact on Fishers to be in the millions of dollars annually over the next several years.
Jensen echoed these concerns.
“We’re looking at about $36 million less revenue than we had fiscally forecasted,” he stated.
“We’ll have to take a hard look at projects that are underway and long-term capital plans.”
The bill, part of Governor Mike Braun's broader mission to limit government spending, has sparked a debate about local government spending.
"Government should be most powerful at the local level, but they cannot be growing their enterprises faster than the economy grows as a rule of thumb," Braun explained at a March 17th rally.
Jensen expressed disappointment with the notion local governments spend unwisely.
“We do more with less every single day and are constantly looking at running lean operations,” he said.
In response to the financial strain, both mayors are considering implementing a local income tax, which the new legislation allows.
“That way we're making the decisions on what the rate should be for our own residents versus being tied into a variety of other communities and governmental entities,” Fadness said.
“That's the last thing we want to do," Jensen added.
"But we also have to provide services to our community to be the elite communities that we are.”
As they navigate these challenges, both mayors are committed to finding solutions to continue providing quality services to their constituents.
“It’s incumbent upon us as chief elected officials for this city to provide the things that people expect,” Fadness affirmed.
“We’re going to continue those efforts, but there’s going to be changes in the flow of that,” Jensen shared.
Both cities are in the planning process and no plans to implement a local income tax have been announced at this time.
