As your Merrillville Town Council President, I believe residents deserve honesty and transparency when it comes to the financial challenges facing our town and communities across Indiana. The recent push by the State of Indiana to cut property taxes may sound appealing on the surface, but the reality for local government is much more complicated.
Property tax reform has become a popular political talking point. Many state leaders are telling local governments to simply “Do More with Less.” The problem is that most cities and towns have already been doing exactly that for years. Local governments are not sitting on piles of extra money. We are not paving streets with gold. We are not building extravagant projects just for the sake of spending. We are trying to provide the most basic and essential services that residents expect and deserve — police protection, fire protection, EMS services, road maintenance, snow removal, parks, code enforcement, and countless other day-to-day operations that keep a community functioning.
Meanwhile, the cost of everything continues to rise. Have your living expenses gone down over the years? Of course not. Fuel costs more. Equipment costs more. Health insurance costs more. Building materials cost more. Salaries needed to retain qualified workers cost more. Running a town today is dramatically more expensive than it was even a decade ago. Yet local governments continue to operate under funding structures that have not kept pace with inflation or growth.
Here in Merrillville, Indiana’s largest town, we have already been creative in finding ways to maintain services without placing excessive burdens on taxpayers. For years, our General Fund has seen very limited growth despite increasing demands and expenses. Because of that reality, Merrillville has utilized allocation areas, commonly known as TIF districts, to help fund some police officer positions and maintain public safety staffing levels. That is not luxury spending — that is necessity.
Unfortunately, the current property tax cuts being promoted by the state will create significant revenue shortfalls for communities statewide. Most local governments will now be forced to look for other ways to replace lost revenue. In Merrillville, that discussion may eventually include a Local Income Tax (LIT) or other alternative funding mechanisms. These are not conversations local leaders necessarily want to have, but they may become unavoidable if the state continues reducing local revenue sources without providing realistic alternatives.
Some people have suggested these property tax cuts are little more than a smoke screen or a way for state leaders to fulfill campaign promises without fully addressing the long-term consequences to local government. Whether you agree with that assessment or not, one thing is certain: cities and towns cannot continue absorbing cuts indefinitely while maintaining the same level of service.
What concerns me even more is the uncertainty surrounding local finances right now. As of May 8, Merrillville still does not have a clear and definitive figure from the Indiana Department of Local Government Finance (DLGF) regarding our actual tax levy amount for this year. Think about that for a moment. We are responsible for operating a major municipality, funding critical public safety departments, and managing daily operations, yet we are effectively spending “in the blind” without knowing exactly what our funding level will be. That is not good government, and it is certainly not a responsible way to manage a town budget.
One thing I can say clearly: laying off police officers, firefighters, EMS personnel, or other essential workers should not be considered a solution. Public safety is not optional. Residents expect emergency responders to arrive when they call. They expect roads to be maintained, and neighborhoods protected. Cutting frontline services would directly impact quality of life and public safety throughout our community.
Local government works best when state leaders and local officials work together realistically and honestly about the challenges we face. Merrillville has worked hard to remain fiscally responsible while continuing to grow and serve our residents well. We will continue doing everything we can to protect essential services and keep Merrillville moving forward — but the financial realities facing local government today are very real, and residents deserve to understand them.
Saving you $225 on your real estate tax bill only to have the town increase another tax to make up the shortfall is not really saving anyone money, is it? It’s just a shell game! – Rick Bella, Town Council President – Ward 5 Representative