NEW ALBANY, Ind. (WDRB) -- Floyd County residents will have to pay more taxes because the county didn't get enough federal funding.
The Floyd County Council met Wednesday evening at the Pine View Government Center in New Albany to discuss a proposed tax increase meant to address a $1.8 million budget shortfall.
It was a tense and controversial meeting with a vote that sent several folks to the parking lot to process.
"It's just your hand in my wallet and telling me tough. I want your money, I need you to make money, so I can take more of it," Doug Keiter, who attended the meeting, said.
The Floyd County Council met Wednesday, July 26, 2023, to discuss and vote on a proposed judicial income tax increase. (WDRB photo)
More than 50 taxpayers showed up, the majority of them in opposition of the council's proposed .07% judicial income tax increase.
"It's your job to spend the money that you have, wisely, and I don't think that's happened entirely throughout your course," said another man who attended the meeting.
The Council proposed the increase in June to counteract a $1.8 million dollar budget shortfall.
“We really need to do this to make our books balanced," Floyd County Council President Denise Konkle said. "I have to do what's right for the county."
Councilmembers in favor of the tax increase said that without it, the county would have to cut services from law enforcement to public works.
The shortfall comes from recent salary raises and unexpected loss in federal funding, according to the council. Council member Dale Bagshaw said they've lost $500,000 from the state of Indiana, $900,000 from housing federal inmates, and $300,000 from the casino.
"If my household needs money, I am either going to go out and work more, get my family to work more, I've got to sell something, or I've got to take a loan. What you guys are doing is printing money," one resident said. "You’re not doing those three. You’re not selling anything. You’re not cutting anything. You’re not working harder. You’re printing money and you’re printing my money."
The original .07% increase would have been about $50 more a year for a person making $70,000. But Wednesday night, that increase was lowered to .04%. That average increase will be about $28 more a year.
”The 0.04 just softens that blow for now. You're still going to pay more. They'll figure out how to do it. I don't think people are happy about this at all," said resident Brendan McCormick. "I wouldn't care if it was a .01%. My kids are going to pay this tax, if we live here, or if they live here, should I say. So, we are going to feel it for 20 years."
The vote passed 4-3.
"I was hoping with, really with the payers coming out and a good showing, that they may reconsider that getting re-elected is an issue. And, I am just disappointed for the taxpayers, and I am one myself," Councilman Jim Freiberger said. "I think of my kids, my family, my community – I mean no one that I have talked to is for this thing. I am just absolutely shocked."
The tax hike takes effect on Jan. 1, 2024.
Wednesday was the second public hearing for the proposal. The first public hearing took place on July 11.
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