Heim Says Tax Mistakes Will Hurt Communities
By Stacey Creasy
Pilot News
State Rep. Steve Heim said mistakes by the State Budget Agency have been costly to 36 counties across the state, including Marshall and Starke.
Heim, R-Culver, alleges years of mismanagement and repeated mistakes will cost the counties millions of dollars on tax revenue over the next four years.
Heim said the State Budget Agency admits to its mistakes, but that is not good enough. The
miscalculations with the County Adjusted Gross Income Tax and County Economic Development Income Tax distributions must be rectified.
A number of counties have received too much money. The state expects it to be repaid at a time when many counties are strapped for cash.
Heim said the mistakes mean Marshall County will experience a 6.4 percent cut or approximately $450,000 in its CAGIT distribution for the 2004 budget year.
The Marshall County Coun-cil trimmed the CAGIT from its budget last year. The county handed out smaller pay raises for 2003 and has issued a hiring freeze in many areas.
Starke County will also be hit hard at a time when county officials have been forced to lay off county employees and reduce funding for programs. Starke County will witness a 10 percent cut in its CAGIT and
CEDIT distributions for the 2004 budget year, totaling $290,000.
Heim said Hamilton County was the hardest hit. The county will be forced to pay back $31 million. County officials there are contemplating a lawsuit against the State Budget Agency over the mistakes.
Depending on specific county circumstances, Heim said the cuts could be a one-time payback or stay in place for several years.
Heim said there is no excuse for the mistakes that have been made in recent years.
�The State Budget Agency claims that the reduction of funds is just a ramification of the national recession,� Heim said. �Unfortunately, this is only partly true. The State Budget Agency has been miscalculating income tax distributions for several years and now those repeated mistakes are being revealed.�
Heim said local communities are paying the price for the mistakes. He said it is time for the executive branch to step up to the plate and offer an explanation to local officials regarding the recurring mistakes that are having such a negative effect on Hoosiers.
|
|
| Community Calendar |
|
No events listed.
|
|
Interactive Calendar
|
