Beech Grove government bracing for budget cuts

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Property-tax caps should help Hoosier homeowners save a bundle next year. But they’re also cutting off local government’s
main source of revenue. On Dec. 15, Beech Grove Mayor Joe Wright announced a series of cutbacks in response to his city’s
reduced financial expectations.

In the first quarter of 2009, Wright will cut Beech Grove’s city staff 5 percent to 10 percent and reduce the health care
benefits for employees who remain. Beech Grove isn’t sure how much impact to expect from tax caps and the recession.

"The $2.7 million in income taxes and the $5 million in property taxes we receive as revenue have taken hard hits lately,"
Wright said.

Wright also hinted that more extensive cuts may be in the works.

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