Wednesday, May 15, 2013

NWI Reports Lake Spending on Hold While Effects of Income Tax Studied

From the Northwest Indiana Times:


Lake County Council members remained cautious about future spending requests Tuesday despite last week's passage of the local option income tax that promises tens of million of dollars in new revenues.
They deferred until June 11 votes on approving $12.7 million in requested appropriations, primarily to fund road, bridge and stormwater drainage projects and shore up the troubled group insurance plan now providing benefits to the county 1,695 full-time employees.
It was their first meeting since May 6, when they passed a 1.5 percent tax on the personal incomes of county residents and workers by a 4-3 margin and the Lake County Board of Commissioners declined to veto the tax Friday, ensuring it will start being collected beginning Oct. 1.
However, county officials said it was unclear when local governments will begin receiving the money and whether they will receive a full draw or only one quarter of that amount in the first year.
The county does have $15 million it borrowed last year to cover the delay, but it was unclear whether that will stretch over the entire time period. The county may have to borrow millions more this year to make ends meet until 2015 when the impact of the income tax is better known.
So the council delayed until next month voting on whether to approve:  $4.5 million to repave county highways, $4.1 million in tax contributions to the employee insurance plan, $2 million in salaries and benefits for Lake County Jail staff,  $1.3 million to improve several south county drainage ditches, $385,000 for computers, $122,000 in court expenses for a death penalty trial earlier this year and $80,000 for new vehicles for the coroner's office.
...
See the full article here: