Latest news with #HouseBill1448
Chicago Tribune
07-04-2025
- Business
- Chicago Tribune
Indiana Senate unanimously passes multi-million dollar Gary repayment bill
An Indiana House Bill requiring the city of Gary to pay more than $12 million to East Chicago and Michigan City will move to Gov. Mike Braun's desk for approval. The Indiana Senate, on Monday, unanimously passed the bill on its third reading. House Bill 1448 — authored by state Rep. Hal Slager, R-Schererville — addresses a state comptroller mistake with supplemental payments that were signed into law in 2019. Following the move of Majestic Star casinos to Hard Rock Casino Northern Indiana, East Chicago and Michigan City were to receive funds to ease the financial burden, but Gary mistakenly received the funds. State sens. Travis Holdman, R-Markle; Ryan Mishler, R-Mishawaka; Lonnie Randolph, D-East Chicago; and Mark Spencer, D-Gary, sponsored House Bill 1448. Holdman gave an overview of the bill before its vote Monday. Gary will start payments next year, Holdman said. 'This won't take effect until next year because budgets have already been passed,' he said. 'Revenues are dependent on passage of those budgets.' Money from supplemental payments will come from deducted state comptroller funds and money appropriated by the Indiana General Assembly, according to bill documents. Money will be withheld for 10 years, Holdman said Monday. If payments were withheld from the city this year, Mayor Eddie Melton previously said Gary would lose about $6 million, which would directly affect police, fire and other necessary resources. House Bill 1448 originally had Gary begin payments this year, but Melton asked to have the timeline delayed due to fiscal constraints. Michigan City Mayor Angie Nelson Deuitch asked for Gary to repay the cities 'in a timely manner,' adding that last year, Michigan City had a shortfall of about $2 million. Last year, the city's budget was cut by about $6 million from the prior year, according to Post-Tribune archives. 'What I don't want to see is a six, seven, eight-year payback,' Nelson Deuitch previously told senators. 'The original was four years, and I would like it to stay at four years.' Gary owes more than $6.4 million to East Chicago and more than $5.7 million to Michigan City, according to bill documents. Gary might also owe Hammond, which was also included on the 2019 supplemental payment bill, if the city is missing funds during the 2025 fiscal year. Hammond Mayor Tom McDermott previously told the Post-Tribune that Horseshoe Casino has lost about $15 million to $20 million each year since Hard Rock opened. State. Sen. Rodney Pol Jr., D-Chesterton, praised the cities' mayors for their work with state legislators about House Bill 1448. 'This is not an easy issue to resolve,' Pol said before Monday's vote. 'Obviously, people are concerned about revenues, and I think (the bill) does a good job of ensuring that everybody's voices are heard.' State Sen. Rick Niemeyer, R-Lowell, said he appreciates that the bill was made to be a bipartisan effort. Leaders from Lake and Porter counties met to discuss the bill, Niemeyer said. 'It was a good fix,' Niemeyer said before the vote. 'It was an agreement between all three cities, so it's a good bill.'
Chicago Tribune
27-03-2025
- Business
- Chicago Tribune
Gary repayment bill to East Chicago, Michigan City passes Indiana Senate committee
An Indiana House bill requiring the city of Gary to pay more than $12 million to East Chicago and Michigan City is one step closer to reaching Gov. Mike Braun's desk. The Indiana Senate appropriations committee unanimously passed and approved amendments to House Bill 1448. The bill, authored by Rep. Hal Slager, R-Schererville, addresses a state comptroller's mistake with supplemental payments that were added into state law during the 2019 session. Gary received funds that were supposed to be distributed to East Chicago and Michigan City to ease the financial burden following the move of the Majestic Star casinos to Hard Rock Casino Northern Indiana, located along Interstate 80/94. Sens. Travis Holdman, R-Markle, and Lonnie Randolph, D-East Chicago, sponsored the bill. House Bill 1448 originally had Gary begin payments during fiscal year 2025, but the Senate appropriations committee approved an amendment that would start repayments one year later. Gary Mayor Eddie Melton had previously said in a statement that it's 'totally unrealistic' for the city to begin payments this year. Melton spoke at the Senate committee meeting Thursday. 'I wanted to be clear that we support making sure that those communities are whole,' Melton said. 'This is not an effort for us to withhold any dollars from them. We want to stay true to what the legislation says, however, it would be a fiscal constraint for us if we were to pay this year.' Since Gary already has its 2025 budget completed, Melton said, making payments would take away from funds that have already been allocated, such as those for police, fire and other necessary resources. Money for supplemental payments will come from deducted state comptroller funds and money appropriated by the Indiana General Assembly, according to bill documents. If the payments were to be withheld this year, Gary would lose about $6 million, Melton said Thursday. Randolph asked Melton if he thinks the distribution is fair, especially when taking into consideration what East Chicago and Michigan City have lost over the last few years. Melton told Randolph that's a difficult question to answer. 'Our gaming revenue is a significant portion of our budget,' Melton said. 'Any fluctuation in that is going to impact how we deliver services to the citizens of Gary.' Gary owes more than $6.4 million to East Chicago and more than $5.7 million to Michigan City, according to bill documents. Michigan City Mayor Angie Nelson Deuitch testified during the Senate appropriations committee meeting. Deuitch wants the payments from Gary in a 'timely manner,' she said Thursday. Last year, Deuitch said she had to convene five financial workshops with Michigan City's council to talk about the city's financial outlook. For several years before Deuitch's first term, Michigan City had not met the projected wagering tax revenues in its proposed budgets. Michigan City had a shortfall of about $2 million last year, Deuitch told the committee. In 2024, the city passed a budget that cut about $6 million from the year before. 'I understand if it has to be delayed a year, but I don't want this to drag on for a decade,' she said. 'We just want to see some assurances that we're going to receive it within a certain time frame, whether that's four or five years, versus seeing that drag on.' Randolph asked Deuitch if receiving monthly payments would ease her concern in terms of regularity. Deuitch said it wouldn't make a difference because the city budgets annually. 'What I don't want to see is that this is a six, seven, eight-year payback,' she said. 'The original was four years, and I would like it to stay at four years.' The Senate is expected to vote on House Bill 1448 at a later date.
Yahoo
24-02-2025
- Politics
- Yahoo
Gary Leaders Push Back as State Bills Threaten City's Finances
With state lawmakers pushing a wave of bills that could reshape Gary's finance and governance, city leaders are working to stay ahead. The Gary Common Council is considering a new committee to track legislation, keep local officials and residents informed, and strengthen the city's ability to advocate for its interests at the state proposal, introduced last week by Councilman Darren Washington, comes as Indiana legislators advances a law that could weaken Gary's representation on the Gary/Chicago International Airport Authority board, along with a mandate forcing the city to repay millions due to a state accounting error. Washington cited the sheer number of bills in the legislature as a major factor necessitating the new committee. 'There are so many bills that fly through the Indiana General Assembly,' Washington said. 'Our legislators don't catch everything, and sometimes many of us have eyes, and we see certain things, and we can help them out and the administration out by looking at legislation that can be detrimental.' Council President Lori Latham said the committee is necessary to help Gary push back against increasingly direct challenges from the state. 'I remember a time when the forces against us were more subtle. However, subtlety has been lost. It's been, in many ways — especially with the airport bill — an all-out attack. I think a committee will be a way for us to at least begin to organize, to defend ourselves again,' she said. 'Gary is under attack; there's no nice way to say it,' Councilman Kenneth Whisenton said, supporting the committee's formation. Washington said the goal of the committee would be to highlight any legislation that impacts Gary. The idea would be to have state legislators come in and inform the council and the public of what legislation is moving through the Statehouse. 'They will be on Facebook, it will be recorded, and they can articulate bills that will be detrimental or benefit the municipal city,' said Washington. Several bills this session could significantly impact Gary. House Bill 1001 proposes reshaping Gary/Chicago International Airport's board, cutting Gary's mayoral appointees from four to one while granting appointments to Hammond, Crown Point, and the Northern Indiana Commuter Transportation District. The plan for the new committee comes just weeks after council members made the trek to Indianapolis as part of Accelerating Indiana's Municipalities, which hosted a finance workshop for Black elected officials. During their visit, the council met with members of the Indiana Black Legislative Caucus. Another bill of interest for the council is House Bill 1448, which requires the city to pay back more than $12 million after the Indiana State Comptroller mistakenly sent funds to Gary originally earmarked for Michigan City and East Chicago. Latham said she and council members spoke specifically with state Rep. Greg Porter, D-Indianapolis, who's been advocating on their behalf as the ranking member on the House Ways and Means Committee, which is where HB 1448 has been heard. 'It's great to see Gary's Common Council members rolling up their sleeves and advocating on behalf of Gary and its residents,' Porter said. 'We look forward to working with them more as we move Indiana and all of its great cities forward.' Council members met briefly with the bill's author, state Rep. Harold Slager, R-Schererville, at the Statehouse to discuss key details of the bill. 'We want to be compliant with the law and make sure Michigan City and East Chicago get what they are due,' Latham said. The current plan would require the city to pay a little more than $5 million from money already budgeted for 2025. 'We established the 2025 budget in 2024, so this is money that we've already budgeted for 2025, and then to make us pay more back and take money out of our budget for the next three years?' Latham said.'We're looking for a more reasonable solution, something that doesn't bankrupt us and require us to lay people off or disrupt city services,' she said. Beyond these immediate legislative battles, the governor's plan to cut property taxes has concerned city leaders. The Gary Common Council met with Gov. Mike Braun in the statehouse as part of a 'Hoosier Huddle' where they discussed possible changes to property tax collection. 'The cuts would be absolutely destructive to local cities and towns in Indiana,' Latham told Capital B Gary. 'You can't repeal such a large source of revenue for local cities and towns without any substantial plan for how local governments will be paying police officers and firefighters.' The post Gary Leaders Push Back as State Bills Threaten City's Finances appeared first on Capital B Gary.
Yahoo
20-02-2025
- Business
- Yahoo
Gary repayment bill for East Chicago, Michigan City passes House without discussion
The Indiana House passed a bill requiring the city of Gary to pay more than $12 million to East Chicago and Michigan City, which means the bill needs Senate approval before reaching Gov. Mike Braun's desk. House Bill 1448 – authored by Rep. Hal Slager, R-Schererville – addresses a state comptroller's mistake with supplemental payments that were added into state law during the 2019 session. Ahead of Thursday's vote, Slager said the bill works to fix 'a misalignment of gaming revenue that was altered for four years through the movement of a gaming license and a hold harmless agreement.' 'We've got to get this straightened out and give the comptroller the authority to get that taken care of. This is a compromise solution,' Slager said. The bill passed 89-2, with Rep. Ragen Hatcher, D-Gary, and Rep. Ryan Dvorak, D-South Bend, voting against it. Hatcher was unable to immediately respond to a request for comment Thursday. Funds were sent to Gary that should have been distributed to East Chicago and Michigan City to ease the financial burden following the move of the Majestic Star casinos to Hard Rock Casino Northern Indiana, located along Interstate 80/94, according to Post-Tribune archives. Gary owes East Chicago more than $6.4 million and Michigan City more than $5.7 million, according to bill documents. Slager, on Wednesday, proposed an amendment to House Bill 1448, which passed the House in the bill's second reading. Both cities might receive compensation for any missing funds during the 2025 fiscal year, according to the amendment. Hammond was also included in the amendment, saying the city could receive payments if it is also missing funds during the 2025 fiscal year. Hammond Mayor Tom McDermott previously told the Post-Tribune that since Hard Rock Casino opened, Horseshoe in Hammond has lost about $15-20 million each year. The city's yearly revenue is about $130 million, he added. Hammond was included in the 2019 bill that awarded supplemental payments. 'We've had to adjust on the fly, but life would be a lot easier if we had the revenue that we had originally,' McDermott said. 'No doubt about it, there was a transfer of wealth from those cities to Gary.' Slager's amendment also says that the state comptroller can deduct $166,666.67 from Gary to make the supplemental payments. The comptroller cannot deduct more than $2 million in a fiscal year. Money for supplemental payments will come from the deducted amount and money appropriated by the Indiana General Assembly for making the payments, according to the amendment. Before the amendment, House Bill 1448 included a three-year plan for Gary's payments. For the fiscal year beginning July 1, 2025, approximately $1.4 million should be paid to Michigan City for the funds not paid in fiscal year 2021, according to the bill. Starting in fiscal year 2026, approximately $2.9 million should be paid to East Chicago and approximately $2.2 million should be paid to Michigan City for funds not paid in fiscal year 2022, according to the bill. For fiscal year 2027, approximately $3.6 million should be paid to East Chicago and approximately $2.2 million to Michigan City for funds not paid in fiscal year 2023, according to the bill. Gary officials have repeatedly expressed concerns about House Bill 1448 and how it will impact the city's finances. When the bill was announced, Gary Mayor Eddie Melton released a statement saying he was shocked at the dramatic impact it would have on the city. Melton believes Gary shouldn't have to pay anything in 2025, his statement said. 'I worked closely with my administration and the Gary Common Council to pass a 2025 budget crafted to the needs of Gary citizens,' Melton's statement said. 'For this bill to be brought up at the last minute to address this egregious oversight is unjust.' mwilkins@
Chicago Tribune
20-02-2025
- Business
- Chicago Tribune
Gary repayment bill for East Chicago, Michigan City passes House without discussion
The Indiana House passed a bill requiring the city of Gary to pay more than $12 million to East Chicago and Michigan City, which means the bill needs Senate approval before reaching Gov. Mike Braun's desk. House Bill 1448 – authored by Rep. Hal Slager, R-Schererville – addresses a state comptroller's mistake with supplemental payments that were added into state law during the 2019 session. Ahead of Thursday's vote, Slager said the bill works to fix 'a misalignment of gaming revenue that was altered for four years through the movement of a gaming license and a hold harmless agreement.' 'We've got to get this straightened out and give the comptroller the authority to get that taken care of. This is a compromise solution,' Slager said. The bill passed 89-2, with Rep. Ragen Hatcher, D-Gary, and Rep. Ryan Dvorak, D-South Bend, voting against it. Hatcher was unable to immediately respond to a request for comment Thursday. Funds were sent to Gary that should have been distributed to East Chicago and Michigan City to ease the financial burden following the move of the Majestic Star casinos to Hard Rock Casino Northern Indiana, located along Interstate 80/94, according to Post-Tribune archives. Gary owes East Chicago more than $6.4 million and Michigan City more than $5.7 million, according to bill documents. Slager, on Wednesday, proposed an amendment to House Bill 1448, which passed the House in the bill's second reading. Both cities might receive compensation for any missing funds during the 2025 fiscal year, according to the amendment. Hammond was also included in the amendment, saying the city could receive payments if it is also missing funds during the 2025 fiscal year. Hammond Mayor Tom McDermott previously told the Post-Tribune that since Hard Rock Casino opened, Horseshoe in Hammond has lost about $15-20 million each year. The city's yearly revenue is about $130 million, he added. Hammond was included in the 2019 bill that awarded supplemental payments. 'We've had to adjust on the fly, but life would be a lot easier if we had the revenue that we had originally,' McDermott said. 'No doubt about it, there was a transfer of wealth from those cities to Gary.' Slager's amendment also says that the state comptroller can deduct $166,666.67 from Gary to make the supplemental payments. The comptroller cannot deduct more than $2 million in a fiscal year. Money for supplemental payments will come from the deducted amount and money appropriated by the Indiana General Assembly for making the payments, according to the amendment. Before the amendment, House Bill 1448 included a three-year plan for Gary's payments. For the fiscal year beginning July 1, 2025, approximately $1.4 million should be paid to Michigan City for the funds not paid in fiscal year 2021, according to the bill. Starting in fiscal year 2026, approximately $2.9 million should be paid to East Chicago and approximately $2.2 million should be paid to Michigan City for funds not paid in fiscal year 2022, according to the bill. For fiscal year 2027, approximately $3.6 million should be paid to East Chicago and approximately $2.2 million to Michigan City for funds not paid in fiscal year 2023, according to the bill. Gary officials have repeatedly expressed concerns about House Bill 1448 and how it will impact the city's finances. When the bill was announced, Gary Mayor Eddie Melton released a statement saying he was shocked at the dramatic impact it would have on the city. Melton believes Gary shouldn't have to pay anything in 2025, his statement said. 'I worked closely with my administration and the Gary Common Council to pass a 2025 budget crafted to the needs of Gary citizens,' Melton's statement said. 'For this bill to be brought up at the last minute to address this egregious oversight is unjust.'
