Latest news with #SEA1
Yahoo
5 days ago
- Business
- Yahoo
Indiana's property tax reform delivers relief while preserving local growth
Indiana's 2024 elections sent a message to leaders that Hoosiers across the state were concerned about getting squeezed out of their homes by skyrocketing property taxes. The angst I heard talking to members of our community came, of course, with an acknowledgement that rising taxes were a result of increased home values, but a lack of transparency around home assessments and some frustration with a seemingly endless chain of school referenda made it clear that many Hoosiers were demanding relief. Heading into the 2025 legislative session, it surprised no one that this issue was front and center for lawmakers. After months of negotiations and input from residents, the Indiana General Assembly delivered one of the most significant changes to local taxation we have seen in nearly two decades. No one got exactly what they wanted — it would take you three minutes on social media to know that — but the result is a bill that provides immediate relief to nearly every Hoosier and, when fully implemented, allows homeowners to deduct two-thirds of their assessed value to lower their property tax bill while reining in $54 billion in local government debt. We transformed some tax deductions into tax credits, a change that will result in lower actual tax bills for thousands of taxpayers; moved school referendums to even-year general election ballots to ensure better participation; and lowered the amount of local income taxes governments can collect by $1.9 billion. In short, while changes to tax policy can be complicated, Senate Enrolled Act 1 not only gives Hoosier homeowners tax relief today, but also moves Indiana to a fairer, simpler and more balanced local tax system in the near future. One of my goals as a state legislator is to ensure the voices of growing communities are represented in these debates. It was important that we find a balance between needed relief and the resources upon which communities like mine have come to rely, resources that represent critical investments in quality of life, amenities, infrastructure and key services. Hicks: Braun cut taxes for businesses, but most Hoosiers will pay more Carmel and Westfield, the cities I represent at the Statehouse, have enjoyed forward-thinking, fiscally responsible leadership for years. The results are demonstrative. Carmel, for example, was ranked No. 2 on the list of the Best Places to Live in 2025 by Livability & U.S. News, and both communities are consistently ranked among the best in the country. Indiana, moreover, is now ranked 7th nationally for net in-migration, with the high-earning, talented individuals Indiana needs flocking to cities in Hamilton County. That's not an accident. The strategies that Carmel and Westfield have implemented should be celebrated and enhanced by the policies coming from the Statehouse. That balance was not easy to strike and local governments and schools will, no doubt, be faced with difficult decisions in the future. But SEA 1 represents much-needed reform to a convoluted property tax system that disincentivizes these hard decisions today at taxpayers' expense. Even with these changes, schools in my district will receive more money from property taxes over the next three years, and the new state budget increases tuition support for students. I am proud of the work we did this session on this issue, and I am equally grateful for the perspectives, insights, and counsel shared by our incredible local leaders who helped legislators avoid harmful unintended consequences. As with any bill this complex, property tax reform will remain a topic of discussion in the General Assembly, and we will be making tweaks to the law moving forward. But SEA 1 is a strong step forward to helping homeowners while improving accountability in local government spending. State Rep. Danny Lopez, R-Carmel, represents House District 39, which includes a portion of Hamilton County. This article originally appeared on Indianapolis Star: Indiana property tax reform delivers relief for homeowners | Opinion
Indianapolis Star
5 days ago
- Business
- Indianapolis Star
Indiana's property tax reform delivers relief while preserving local growth
Indiana's 2024 elections sent a message to leaders that Hoosiers across the state were concerned about getting squeezed out of their homes by skyrocketing property taxes. The angst I heard talking to members of our community came, of course, with an acknowledgement that rising taxes were a result of increased home values, but a lack of transparency around home assessments and some frustration with a seemingly endless chain of school referenda made it clear that many Hoosiers were demanding relief. Heading into the 2025 legislative session, it surprised no one that this issue was front and center for lawmakers. After months of negotiations and input from residents, the Indiana General Assembly delivered one of the most significant changes to local taxation we have seen in nearly two decades. No one got exactly what they wanted — it would take you three minutes on social media to know that — but the result is a bill that provides immediate relief to nearly every Hoosier and, when fully implemented, allows homeowners to deduct two-thirds of their assessed value to lower their property tax bill while reining in $54 billion in local government debt. We transformed some tax deductions into tax credits, a change that will result in lower actual tax bills for thousands of taxpayers; moved school referendums to even-year general election ballots to ensure better participation; and lowered the amount of local income taxes governments can collect by $1.9 billion. In short, while changes to tax policy can be complicated, Senate Enrolled Act 1 not only gives Hoosier homeowners tax relief today, but also moves Indiana to a fairer, simpler and more balanced local tax system in the near future. One of my goals as a state legislator is to ensure the voices of growing communities are represented in these debates. It was important that we find a balance between needed relief and the resources upon which communities like mine have come to rely, resources that represent critical investments in quality of life, amenities, infrastructure and key services. Carmel and Westfield, the cities I represent at the Statehouse, have enjoyed forward-thinking, fiscally responsible leadership for years. The results are demonstrative. Carmel, for example, was ranked No. 2 on the list of the Best Places to Live in 2025 by Livability & U.S. News, and both communities are consistently ranked among the best in the country. Indiana, moreover, is now ranked 7th nationally for net in-migration, with the high-earning, talented individuals Indiana needs flocking to cities in Hamilton County. That's not an accident. The strategies that Carmel and Westfield have implemented should be celebrated and enhanced by the policies coming from the Statehouse. That balance was not easy to strike and local governments and schools will, no doubt, be faced with difficult decisions in the future. But SEA 1 represents much-needed reform to a convoluted property tax system that disincentivizes these hard decisions today at taxpayers' expense. Even with these changes, schools in my district will receive more money from property taxes over the next three years, and the new state budget increases tuition support for students. I am proud of the work we did this session on this issue, and I am equally grateful for the perspectives, insights, and counsel shared by our incredible local leaders who helped legislators avoid harmful unintended consequences. As with any bill this complex, property tax reform will remain a topic of discussion in the General Assembly, and we will be making tweaks to the law moving forward. But SEA 1 is a strong step forward to helping homeowners while improving accountability in local government spending.
Yahoo
05-05-2025
- Health
- Yahoo
‘Turn Awareness Into Action': What Indiana is doing for mental health
Mental Health America of Indiana urges readers to "Turn Awareness Into Action" during Mental Health Awareness Month. (Getty Images) Every May, Mental Health America leads the state and nation in recognizing Mental Health Awareness Month. Mental Health Awareness Month has been observed in May throughout the United States since 1949. The month is often observed with media, local events, proclamations, and even film screenings. The purpose is to raise awareness and educate the public about mental wellness and mental illness, to reduce the stigma around the disorder. Individuals oftentimes feel alone with their illness — when in fact, one in four are at lifetime risk. But we need to do more. This year, we are not just raising awareness — we are turning that awareness into action! The national theme for 2025 is: 'Turn Awareness Into Action.' This is a call to go beyond the conversation and take real steps to improve mental well-being — whether that means checking in on a friend, calling your legislator, or reaching out for help yourself. In Indiana, this movement is already underway. Just a few years ago, our state ranked 42nd in the nation for mental health care access and outcomes. Mental Health Advocates, stakeholders, and legislators turned awareness into action in 2023 and made mental health a priority via SEA 1. SB 1 was the work product of the Indiana Behavioral Health Commission and authored by Senator Mike Crider. Today, thanks to targeted funding and legislative action, Indiana has climbed to 26th in the national ranking for behavioral health. This improvement has not been by chance, but rather the result of the strategic efforts of the Commission and the Indiana General Assembly. Legislators included a $50 million annual investment in behavioral health in HEA 1001-2023 as well as the building of the behavioral health infrastructure of crisis response, treatment access, and community care in SEA 1. While more is still needed, we have begun to take action. Behavioral Health Commission wraps up two-year study with $50M ask One of the most transformative examples is Indiana's 988 Crisis & Suicide Lifeline. This program ensures that Hoosiers can speak to trained crisis counselors 24/7 — people who live here and understand the unique needs of our state. Mental Health America of Indiana is proud to operate one of these call centers, and we've seen call volume grow by 184% in the last year alone. And behind every statistic is a story. One man called our 988 line literally with a gun to his head. Because of the assistance from the trained crisis counselor who answered, he put the gun down and agreed to safety planning. 'You've literally saved my life,' he said. He was one — of many. This is the power of action. Every Hoosier can take action! In May 2025, this Mental Health Month, please take the first step: Check your own mental health by taking a free, anonymous screening at It is totally anonymous. Start conversations with those around you — ask, 'How are you, really?' Join the movement by advocating for continued state support of Indiana's mental health system, including funding for 988 and Certified Community Behavioral Health Clinics (CCBHCs). Wear green in support of Mental Health Month and join us in being 'Seen in Green' this May. Support Mental Health America of Indiana, which provides direct care and statewide advocacy every day. To be part of MHAI, go to: The truth is, every Hoosier has the power to turn awareness into action. Whether it's through a phone call, a conversation, or a policy change — you can help build a mentally healthier Indiana. Please join us to keep moving Indiana forward. Turn your own awareness into action. SUBSCRIBE: GET THE MORNING HEADLINES DELIVERED TO YOUR INBOX
Indianapolis Star
29-04-2025
- Business
- Indianapolis Star
SB 1 cut property taxes. But will local governments hike income taxes? How much you could pay
AI-assisted summary Indiana's SEA 1 will provide property tax relief to homeowners and businesses, with businesses receiving the largest cuts. Local governments can offset property tax revenue by increasing income taxes. That could mean some families pay over $1,000 more per year on income taxes. Cities across Indiana are evaluating the impact of SB 1 and considering measures like hiring freezes and delays to infrastructure projects. In northern Indiana, the Democratic mayor of South Bend called Senate Bill 1 a " sweeping anti-growth policy" that sabotages local governments. In southern Indiana, the Republican mayor of Jeffersonville responded with cost-cutting measures including a hiring freeze on all but "essential and critical" roles and tighter restrictions on overtime and work-related travel. And in Central Indiana, Noblesville's Republican mayor is contemplating new income taxes and delays to major infrastructure projects as he expects his city to miss out on tens of millions in property tax revenue over the next few years. Much remains unclear as municipal leaders reckon with how much property tax revenue they stand to miss out on from the 345-page SB 1, an overhaul of local government finance signed into law by Indiana Gov. Mike Braun April 15. Tax revenues will still increase as property values keep rising, but by far less than local leaders had expected under the current system. With lost revenues statewide at an estimated $1.4 billion from 2026 to 2028, local leaders say that years of belt-tightening will entail tough decisions about how to maintain crucial services like road maintenance, public education and emergency response systems. Multiple experts say they expect most communities to increase income taxes come 2027, which could completely offset the property tax savings for the typical Indiana homeowner and wring out more money with no relief from the nearly 30% of Hoosiers who rent. Many communities could tax a Hoosier family with an income near the median $80,000 over $1,000 more per year, according to Michael Hicks, a Ball State University economist who leads the university's Center for Business and Economic Research. "The income tax increases are delayed a year, so we will have a year of tax cuts and service cuts before we start seeing schools, counties and cities scrambling to plug budget holes," Hicks told IndyStar. The tax cuts, he added, "take an awful lot out of local government and expose an awful lot of taxpayers to potentially paying a much higher income tax." How the new law helps homeowners, businesses The new law will save most homeowners some money, mainly through tax credits of 10% on their property tax bill, with a $300 max credit. Wealthier homeowners will receive the full $300 while most homeowners whose assessed value falls below $300,000 will save less, aside from added relief for seniors, veterans and people with disabilities. Republicans say they expect two-thirds of homeowners to pay a lower property tax bill in 2026 than they will this year. Businesses will receive the most tax relief as the minimum threshold for filing taxes on business equipment, such as computers and machinery, rises from $80,000 to $2 million by 2027, meaning most Indiana businesses won't pay any property tax, according to Hicks. Cuts to taxes on depreciating business equipment bought after Jan. 1 will also drain money from local coffers over the next decade, Hicks said. Crucially, the bill allows cities and towns to make up for lost revenue by imposing income taxes, which are currently applied at the county level. Most homeowners are likely to see their property tax savings offset by higher income taxes levied by local governments desperate to shore up their budgets, multiple public policy experts told IndyStar. The governor and Republican legislators tout that the law will reduce the local income tax cap in each county from 3.75% to 2.9%. Because most counties already impose a rate well below 2.9%, however, the new law is still likely to increase the income tax that most people pay, said Paul Helmke, a former three-term Republican mayor of Fort Wayne who now teaches public policy at Indiana University. Under the current system in which local governments rely heavily on property taxes, only seven of the state's 92 counties have local income tax rates over 2.8%. Marion County's levy, for instance, is 2.02%, while Hamilton County's rate is 1.1%. Dwindling property tax revenues will strain local leaders' ability to deliver high-quality services like a robust police department or well-maintained parks without somehow scraping together more revenue, Helmke said. It's possible that local governments won't take the political risk of setting tax rates near the 2.9% cap, Helmke said, but the corresponding quality-of-life reductions could prove even more unpopular. "For the elected officials, the challenge is going to be how to provide first-class services that people expect with these property tax changes," Helmke said. "For the city and the county, I think it means you're going to have to hike the income tax." If local units in Hamilton County were to increase income taxes to the maximum rate, that would mean someone with a median county household income of just under $118,000 could pay an additional $1,800 in income taxes per year. Even just bumping the rate up to 1.4% — well beneath the limit allowed under law — would offset the max savings from the property tax credit. "Since the (SB 1) tax cuts are the broadest and largest business tax cuts in state history," Hicks said, "most local governments will need to maximize most of that income tax." Justin Ross, an IU economist specializing in state and local tax policy, said he would be surprised if most local governments don't tax near the maximum 2.9% rate in the next couple of years. Otherwise, they sacrifice amenities like ample parks, strong schools and robust police and fire departments that give cities and towns the edge in the competition for new residents. "Local governments, for good or for bad, are the closest to being like a business," Ross said. "Their property taxes are largely tied to their ability to make the place a desirable place to be." Republican legislators aim to increase transparency by requiring local governments, starting in 2031, to vote annually on the income tax rates. Tax levies will no longer continue indefinitely but will be discussed and voted on during standalone public hearings. "If local units of government choose to raise other taxes, like a local income tax," State Sen. Chris Garten, R-Charlestown, said in a statement, "those units will have to justify to their taxpayers why they need more hard-earned taxpayer money instead of first looking to make their operations more efficient." How local governments are reacting so far A consequence of local governments' shift from depending less on property taxes and more on income taxes will be greater difficulty forecasting revenues and planning long-term capital improvements, Accelerate Indiana Municipalities CEO Matt Greller told IndyStar. "Property tax is very stable. You know what you're going to get for the most part. Every year, it doesn't fluctuate a whole lot," Greller said. "Income taxes can fluctuate a lot more." Under the new property tax law, Marion County is forecast to miss out on roughly $77 million in property taxes from 2026 to 2028 while Hamilton County forgoes $133 million, according to a state fiscal report. In Marion County and statewide, schools are poised to face the largest losses. In 2024, nearly half of the roughly $1.6 billion in property taxes collected in Marion County went to schools. The consolidated city-county government of Indianapolis and Marion County received a third of the taxes, about $513 million, that year. Smaller disbursements went to township trustees' offices, libraries, hospitals and public transit. Many local officials told IndyStar that the complexity of Indiana's property tax system means the looming changes are uncertain and require further analysis. But as towns and cities begin forming their 2026 budgets this summer, officials will act in anticipation of the millions of tax dollars they expect to miss out on in the coming years. "The way we fund local government is shifting pretty significantly," Greller said, "and there's going to be a whole lot of nuances in order to figure out what it looks like now." Officials with the Indianapolis mayor's office and the Marion County assessor's office declined interviews on how the bill may reduce services in the state's largest city. The same was true of leaders in Carmel and Westfield. All said they are still analyzing how the bill will affect their cities. Noblesville Mayor Chris Jensen said extensive internal analyses show his city could receive about $36.5 million less than projected over the next four years. Those numbers far exceed Legislative Services Agency estimates — about $21 million for the city and school system combined — because the city is taking more factors into account than merely the tax credits, Jensen said. With healthy cash reserves, the city is likely to manage the losses by pulling back on plans to boost its already "very lean" staffing levels, Jensen said. The lost revenue will also probably delay some of the 284 capital projects in Noblesville's 10-year plan. The mayor wasn't specific on which projects could be delayed, but Noblesville lists a number of road projects, such as improvements to State Road 37 and 38, as under design on its website. "Even though we won't probably see the fiscal impact for another eight or so months until we get to 2026," Jensen said, "we'll certainly be budgeting based on those fiscal impacts here in the next 90 days." Deb Whitfield, the Democratic mayor of Lawrence, said the law may benefit homeowners but places intense strain on local governments. Lawrence city government could lose more than $1.2 million from 2026-2028, while the Lawrence school district stands to miss out on nearly $2.7 million. Starting this budget season, Whitfield said, she's intent on figuring out how to maintain high-quality public safety, schools and libraries with less money. Whitfield said that for her and her fellow mayors, there are "going to be a lot of sleepless nights coming."
Axios
22-04-2025
- Business
- Axios
IPS navigates budget uncertainty during enrollment window
Indianapolis Public Schools is facing millions in budget cuts and an uncertain future. Why it matters: Superintendent Aleesia Johnson said IPS is facing "a long-term challenge" from legislation passed this year that cuts property taxes and forces traditional school districts to share property tax dollars with charter schools. Analysis of earlier versions of the charter school-sharing language raised fears that IPS would face school closures and staff layoffs, but an IPS spokesperson told Axios the district is still working to understand the latest version that was signed into law last week by Gov. Mike Braun. State of play: The property tax reform in Senate Enrolled Act 1 will strip roughly $15 million from IPS over the next three years and more cuts could be coming. While schools get some funding from property taxes, the vast majority comes from the school funding formula in the state's two-year budget. The current version of the budget proposes annual 2% increases for K–12 schools, but lawmakers found out last week that they need to cut a staggering $2 billion from that spending plan. Between the lines: Statehouse leaders have said K–12 education will be the last place they look to make cuts, but schools are the single largest expense, making up nearly half of the state budget. Threat level: This is the first full year of Rebuilding Stronger, IPS' K–8 overhaul aimed at making school assignment and choice more equitable and high-quality academic programming more accessible. Cuts to funding could force IPS to scale back on planned expansions to academic paths, arts, music, team sports, foreign languages and facility improvements. While the work included in the 2023 capital projects referendum won't be impacted, smaller projects across the district could be cut. Zoom in: The uncertainty comes at a challenging time in the calendar: the middle of the enrollment process. While the most impactful parts of SEA 1 won't take effect for several years, families may start looking for school options with less uncertainty in their futures. "We know that we have many families looking forward to and making decisions for next school year," Johnson said in a message to families sent during the weekend. "Our schools have so many exciting opportunities, and we encourage you to explore those as you are making your decisions."
