Joe Hornaday
Around the state, legislators are reviewing a proposal for a sales tax increment finance district, or STIF, by a county development group seeking special legislation incorporated in House Bill 1077.
That bill has passed the House and awaits action in the Indiana Senate.
Unlike a typical property tax abatement that uses local funds for local infrastructure development, a STIF takes Indiana state sales tax money and uses it as a revenue stream for a local bond for development funding. Instead of being paid by locals, a STIF charges the whole state for a local project.
At the recent meeting of the Decatur County Republican Party, Mayor Gary Herbert shared this information. He had recently been asked to assist in stopping the “bad legislation” by the former mayor of Evansville Russell Lloyd.
Over the years, Mayor Herbert explained, local communities have always looked to fund their local needs. United States Senate candidate and State Sen. Marlin Stutzman (R - District 13) agreed with both Mayor Herbert and the former mayor of Evansville, saying he would like to see more flexibility instead of a straight revenue stream that would take away state tax dollars for specific projects in infrastructure. Setting that precedent, Stutzman suggested, would ultimately be negative when local control is so much more important. Mayor Herbert agreed, adding that it would put people back to work but at serious costs. The money in the “special legislation” comes from tax money all over the state, Mayor Herbert said. He noted that for him, it was aggravating that the city of Greensburg often has to compete for its own money.
“Greensburg is nothing but a grain of wheat in the trailer truck load full,” Mayor Herbert said.
Recently, the City Council agreed to apply for $500,000 in grant funds for a downtown revitalization project and to pay about $103,200 from EDIT funds to help the project along. In a time when “government spending” is popularly seen as “out of control,” the decisions to take grant money are sometimes abhorred and unvalued.
“But I don’t see why (Greensburg) should give up money for Shelbyville, Greenfield, Rushville or anywhere else,” Mayor Herbert said. “Shouldn’t we prosper as well? (But) it is a Catch 22.”
According to the mayor, the city has always attempted to spend money wisely.
“And that’s what we’re trying to do in Greensburg and Decatur County,” he said.
