From the Muncie Star-Press:
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Local officials found out this week that city and county government and schools will receive millions fewer tax dollars than they had anticipated due to funding changes in the wake of statewide tax caps.
For Delaware County government, that means a loss of $4.4 million for this year’s budget instead of the $3.4 million decrease officials had been told to expect.
“That’s the numbers we were given,” County Council President Kevin Nemyer told The Star Press. “It’s a huge blow. We just keep receiving bad news.”
The impact on other tax-funded budgets, including the city and Muncie Community Schools, might be even greater.
The county auditor’s office said city government, which had anticipated decreased revenue amounting to $7.6 million, will actually see a shortfall of $13.9 million — a difference of more than $6 million less this year.
Neither Mayor Dennis Tyler nor City Controller Audrey Jones returned calls seeking comment Tuesday afternoon.
Muncie Community Schools had been expecting a revenue decrease of $6.5 million but now will see a decrease of $8.7 million, a difference of more than $2 million.
County Auditor Judy Rust met with county officials on Monday, and briefed Jones and schools chief financial officer Mark Burkhart on Tuesday.
Although city government has seen some impact since statewide property tax caps were enacted in 2010, county government has been hit far harder. The county has in recent years laid off a couple of dozen employees, closed the Delaware County Building on Fridays — a decision that was later reversed — and in recent weeks has borrowed just under $3 million from the county’s rainy day fund earlier this spring. Council began budget meetings recently.
For the county’s part, Nemyer said, that means cuts that were necessary will now be deeper.
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See the full article here:
http://www.thestarpress.com/apps/pbcs.dll/article?AID=2013305090013
