Local Governments Fight To Stay Solvent
Most cities and towns across Indiana are continuing to struggle with sharp revenue shortfalls and the uncertain economy. Network Indiana’s Mike Corbin reports….
Indiana Association of Cities and Towns Executive Director Matthew Greller blames their condition on the slow economic recovery and state-imposed property tax caps that have reduced local government revenues by hundreds of millions of dollars. Greller also blames it on lower revenue from the cigarette and gas taxes. While Congress debates variations on budget cuts vs. tax hikes vs. tax cuts vs. user fee increases, Greller says local governments need greater autonomy and ability to decide what‘s in their best fiscal interest. Greller says too many localities are required to seek permission for too many things – something that may be hindering progress.