Smith: House passes bill returning $550M to local communities

Posted by: Lindsay Devlin  | Wednesday, February 3, 2016

INDIANAPOLIS (Feb. 3, 2016) — The House of Representatives voted unanimously in support of a plan co-authored by State Rep. Milo Smith (R-Columbus) that would return $550 million to local governments.

House Bill 1110 would immediately infuse $440 million into local government budgets free of restrictions. If enacted, Bartholomew County would receive about $6 million as a one-time payment. The bill would also reduce the threshold for supplemental distributions from 50 to 15 percent.

Smith said these funds could be used by local governments to provide much-needed services, like local infrastructure or public safety.

“This legislation would give Bartholomew County officials the means necessary to move forward with local projects or help pay for much-needed services,” Smith said.

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. Smith said the bill does not raise taxes or create new debt since the funds already exist in trust accounts.

House Bill 1110 now heads to the Senate for further consideration.


Rep. Smith (R-Columbus) represents a large portion of Bartholomew County in central Indiana.