Anderson State of the City: Mayor concerned about Statehouse tax relief impacting local finances

During his State of the City address Sunday, Anderson’s mayor said one of his main concerns for the city’s economic future was the effects of tax-cutting plans in proposed versions of the state’s next biennial budget.   IPR’s Thomas Ouellette reports on what the loss in revenue could mean for Anderson.

Governor Mike Braun made property tax relief a huge part of his campaign for the office, and his state budget plan would do that.  But it would also mean less funding for local government – and in Madison County, that means a loss of $14 million in 2026, and more in subsequent years.

Giving his annual speech, Anderson Mayor Thomas Broderick, Jr. says the tax plan would slow down the city’s growth and its ability to operate as normal.

“They want to basically make the local units of government be the person to share the cost of taking care of that loss,” he said.

Broderick says there is money set aside in the city’s operating balance to cover the financial loss should Braun’s tax plan go through.  He also says it is far from a long-term solution.

Braun’s original plan was heavily amended by a different bill in the Senate, before senators passed that second plan last week.  It greatly reduces potential revenue losses to local governments.  However, Braun has said he would veto the bill if it doesn’t bring enough relief to Hoosiers.

Broderick is also concerned about federal budget cuts.

“We have our community block grant dollars that we use for public facilities, and for upgrades and for housing assistance for folks, and a lot of other things that we do in the community, particularly low-income individuals, and all that’s at risk,” Broderick said.

Broderick says there is a lot of pressure on local governments to be frugal and cautious in the year ahead.

Thomas Ouellette is our reporter and producer.  Contact him at [email protected]