The Monroe County Income Tax Council met Sept. 27 to pass the public safety local option income tax again. With 95 of 100 votes cast at the meeting, the 0.25% tax will continue into 2017. Ellettsville Town Council, which has the remaining five votes, tabled its vote until Oct. 10.
The tax council is composed of Bloomington City Council, Monroe County Council, Ellettsville Town Council and Stinesville Town Council.
The state invalidated an earlier passage of the tax because it fell during a period in which new taxes could not be issued.
A new state tax code went into effect July 1. To accommodate the change, local governments were barred from passing new taxes between May 1 and June 30. The tax council made its final vote to approve the public safety tax on June 16.
The Indiana Department of Local Government Finance and Indiana Department of Revenue allowed the tax to be collected through the end of 2016 after their review. However, the tax council had to pass it again by Oct. 31 to continue after Dec. 31.
“This may seem like déjà vu, I know,” said Bloomington City Council Attorney Philippa Guthrie.
She told the city council the process for passing the tax was submitted to DLGF ahead of this vote to ensure it was acceptable. She, along with Monroe County Attorney Michael Flory and Ellettsville Town Attorney Darla Brown, crafted the resolution.
The state had one quibble. The estimated revenue from the tax was $570,000 higher than first thought. It asked the tax council to lower the percentage of revenue dedicated to county central dispatch by 1% – 29% instead of 30%. That way the planned funding for it remains about $2.2 million.
A tax council subcommittee considered requests for funding from township fire departments while the tax was under review. It approved $391,560 in funding, which included $90,000 for Richland Township and $17,000 for Bean Blossom Township.
Distribution of funds to central dispatch and township fire departments will come first. The two total 34.2% of the tax revenue, according to Guthrie. The rest will be distributed to the county, city, Ellettsville and Stinesville proportionally by property tax raised.
“I feel very strongly that we do need to pass this local income tax because we do have pressing public safety needs on all levels of municipal and county government,” said City Council member Isabel Piedmont-Smith.
The rest of the city council agreed and passed the tax resolution 9-0.
The county council’s discussion centered on the need for a community corrections facility and road deputies.
“We’ve known for years that we need a true community corrections facility,” County Council member Geoff McKim said. He referred to a thwarted attempt to get one passed in 2009, then added, “The public safety tax can be a real game-changer here.”
The county has budgeted for half of its share of the revenue to be held back to save for a community corrections facility. It also budgeted to hire five sheriff’s deputies over the next fiscal year and hopes to hire five more after that. The county council stated that the sheriff’s department is understaffed by about 30 people.
McKim noted new state legislation puts a cap on the number of inmates that facilities can hold. He said Monroe County’s capacity is 248, and recently, there were 244 inmates incarcerated.
County Council member Lee Jones said hiring more deputies was a good thing, but it would exacerbate the need for a higher-capacity jail.
“I just hope that we will continue to be careful to reserve funds until we can really put together a coherent, well-thought-out plan for community corrections,” she concluded.
County Council member Marty Hawk, who represents Richland Township, warned future tax councils could change where the money goes. The new tax code allowed revenue to go to public safety, economic development or certified shares.
“We must make certain that we are all letting the public know this is for public safety in 2017, but the income tax council could determine that that portion could be used for other things,” she said.
“I’m very concerned that future elected officials will not see what we’re seeing right now,” County Council President Cheryl Munson said. “We’re the ones voting to impose the tax, but they will be the ones voting to spend that tax. They may spend it for economic development or public safety. I want them to know that we are all voting for this because of our concern about public safety, and I will remind them if they forget it.”
County Council member Shelli Yoder said she would be voting against the public safety tax in protest.
“I want my vote to underscore that our public safety providers need better guarantees in writing in the form of state legislation to assure that their valuable services to our communities will get the support they need from these revenues.
“I want my ‘No’ vote to lead to change to strengthen the voices of the men and women who are at the forefront of keeping us all safe,” she said.
Yoder cast the only vote against the tax at the meeting.
Ellettsville Town Council voted unanimously to table the issue until its Oct. 10 meeting.
The town council had a quorum but did not have enough people to approve the tax on first reading. Scott Thomas and Brian Mobley were absent.
“I, for one, am voting for the public safety part of it,” Town Council member Dianna Bastin commented. “I would like to think that it will never be used for economic development, just public safety.”
Stinesville Town Council, which does not have a vote on the income tax council due to population size, voted 3-0 to support its passage. Town Council member Butch Miller was not present.
“We see the value of public safety protection for our residents,” said Council President Kimberly Cunningham. “We want a strong sheriff’s department, dispatch center, police protection, firefighter protection, effective courts, and other actors whose daily job is to protect us.”
Ellettsville Town Council will vote on the public safety tax Oct. 10 at 6 p.m. in the Ellettsville Fire Department conference and training room. However, its vote will not change the outcome as Bloomington City Council has a simple majority on the tax council.
Originally published in Ellettsville Journal, 2016. Republished here for archival and portfolio purposes.