The state's error resulted in lost revenue in the eight-county metro area ranging from $1.1 million in Shelby County to $33.8 million in Marion County.
Add in interest, plus the expected increase in regular tax distributions the rest of the year that will result from the programming error's correction, and that means $55 million extra for Marion County, according to Indianapolis Mayor Greg Ballard's office.
Of that, the biggest chunk, $41.3 million, will go into the city-county general operating fund, which covers day-to-day spending. (It accounted for $570 million of this year's budget.)
How to spend the unexpected money set off an immediate public battle.
Ballard, a Republican, wants to save all of the money for next year's budget. He's been staring down a projected $50 million to $70 million preliminary deficit in 2013.
If the city holds on to the extra tax money, it could nearly offset even the higher end of the deficit range. That's because, besides recouping extra county income tax money from 2011 and this year, the state's revision has increased expected revenue in 2013 by $23 million.
Altogether, that's $64.3 million.
But City-County Council President Maggie Lewis and other leaders of the council's Democratic majority see a chance to solve a more immediate disaster.
Namely: $32 million in projected combined shortfalls this year in the Indianapolis public safety and Marion County sheriff's budgets.
A statement from Lewis called the unexpected tax money "a perfect opportunity to close the funding gap and keep our citizens safe." She added: "Public safety is a critical function of local government, and the safety of our citizens has to be our top priority."
But Ballard portrayed such thinking as shortsighted.
"I want people to live within their budgets this year," he said. "I think there are efficiencies to be had in public safety, and I'm expecting that everybody will be coming together to do that."
He argued that such austerity would prepare departments and agencies for a lean 2013.
That already has been happening. Public Safety Director Frank Straub told the council last week that he thinks he can overcome his $15.1 million shortfall by year's end by reining in spending and putting off some big-ticket purchases, including replacing aging patrol cars.
However, Marion County Sheriff John Layton, a Democrat, has portrayed his troubles as more intractable, particularly spiraling inmate and arrestee medical costs.
Ballard could hold the upper hand because his city controller is the financial gatekeeper for city and county finances. The mayor also has veto power over the council.
Council Minority Leader Michael McQuillen, who leads Ballard's fellow Republicans, said in his own statement Friday -- addressed to Lewis -- that GOP members aren't ready to divert the county income tax windfall to this year's shortfalls.
"Reductions in spending and other belt-tightening measures will be considered long before throwing taxpayer dollars at our budgetary problems," McQuillen said.
