From the Fort Wayne News Sentinel:
A $206 million blunder will cost a top state official his job but represents a $15 million windfall for various governments in Allen County. But that doesn't necessarily mean taxpayers will get a refund – or government employees a raise.
Nick Jordan, Allen County's chief deputy auditor, said the recent discovery of the Indiana Department of Revenue's underpayment to local authorities means Allen County will receive an additional $4.4 million in county option income taxes (COIT) and $2.9 million in county economic development income taxes (CEDIT) for 2011 and about $4.4 million in COIT and $3.7 million in CEDIT for this year. How much each unit of government receives – that includes cities, towns, the county, airport, library and others – must still be determined, Jordan said.
Schools do not receive income taxes and as a result will not be affected.
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Jordan said the county should receive about $10 million almost immediately, with the remaining $5.4 million distributed throughout the year.
“It's bad for the state, but good for us,” Jordan said.
But because the money represents a one-time payback, not an ongoing increase in available revenues, members of city and county councils agreed it should not be used in a way that creates permanent financial obligations.
“It should be earmarked for neighborhood improvements,” said City Council President Tom Smith, R-1st. “That's the No. 1 thing Council members talk about. We're always looking for ways to fix our streets. And it would help promote economic development.”
With about $20 million in cash reserves, Smith said it's doubtful the city will need to put its share into its rainy day fund.
Allen County Council member and former President Darren Vogt suggested the county could put some of its share into its $17 million rainy day fund, but agreed that any money spent should be for one-time capital projects such as roads, not for salaries and other ongoing expenses.
“That's not revenue we can count on in the future,” he said. “We will have to sit down and set our priorities.” County officials had previously suggested additional cuts could be needed in the 2013 budget because of anticipated revenue decreased.
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http://www.news-sentinel.com/apps/pbcs.dll/article?AID=/20120405/NEWS/120409758
