STATEHOUSE (Feb. 12, 2016) – State Rep. Rhonda Rhoads (R-Corydon) supported legislation that would return $550 million to local governments.
House Bill 1110 would immediately infuse $440 million into local government budgets free of restrictions. The remaining $110 million would be distributed over the following four years, for a total of $550 million. If enacted, Clark, Floyd and Harrison counties would immediately receive one-time payments in the following amounts:
The bill would also reduce the threshold for supplemental distributions from 50 to 15 percent.
Rhoads said these funds could be used by local governments to provide much-needed services, like local infrastructure or public safety.
“This legislation returns to local governments a majority of their local option income tax reserves,” Rhoads said. “Local officials understand best what their communities need and can put these dollars to good use.”
These funds would be acquired from counties with a surplus in their income tax budget. The money is then held in reserve by the state in trust accounts for each county. Rhoads said the bill does not raise taxes or create new debt since the funds already exist in trust accounts.
House Bill 1110 is now in the Senate for further consideration.
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Rep. Rhoads (R- Corydon) represents portions of Clark, Floyd and Harrison counties.
