John Stehr: Tax reform must leave enough for local governments

I have been watching the machinery of Indiana government grind on for more than three decades now.

For most of those years, as a journalist, I could be somewhat detached from the proceedings. Like most people, I haven’t wanted to pay more in property and income taxes than necessary, and I didn’t want to see my tax dollars spent on programs that I feel are frivolous or unnecessary. But at the end of the day (or on the 11 p.m. newscast), it was just a story to cover, not something that would affect how I did my job.

Now, as mayor of Zionsville, I am watching the Legislature from a different point of view. I have more of a vested interest in what our lawmakers decide because their choices will affect life on the ground here and in the homes of the community I serve.

Budgets are more than just financial statements. They are also a statement of priorities. Some might say that it seems politicians always want more money. Let me be clear: I don’t necessarily want more money for Zionsville. I just want enough money. Enough to provide the emergency services constituents need and deserve. Enough to keep our infrastructure in good repair. And enough to provide amenities, including parks, and basic services like building permits and safety inspections. Local government is not political. It is about providing quality of life to our constituents, and that starts with the road map given to us by our Legislature.

One path could be found in Senate Bill 1, which incorporates Gov. Mike Braun’s plan for property tax cuts, including increases in homestead deductions and new caps on property tax growth. That’s great for taxpayers, but the Legislative Services Agency estimates it could impact local governments by removing $1.6 billion in funding by 2028.

Senate Bill 9 would change the maximum levy growth quotient calculation. Minutiae, I know, but it could affect the bottom line for local governments by $163 million over the next two years.

In the other chamber, House Bill 1402—assigned to the House Ways and Means Committee—could fundamentally reform local government finance and affect the distribution of both income and property tax revenue to municipal governments. It’s still unclear what the local impact would be.

State lawmakers will work through these bills, and others, over the next three months. My fellow local mayors, town managers and councilors will be watching to try to make sure our interests and the interests of our constituents are served.

I learned in my first career that any good story has a beginning, a middle and an end. We’re in the early chapters, and what our representatives in Indianapolis are talking about in January could look completely different in April. What lawmakers do at the Statehouse in the next few months will affect our quality of life in Zionsville, just 18 miles up the road, and in every municipality in our state. We should all be paying attention as the story plays out.•

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Stehr is a Republican and the mayor of Zionsville.