Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Hamilton Center Funding topic
No spam. Unsubscribe anytime.
New state law could bar Hamilton Center from county funding if nonclinical pay exceeds $400,000
Summary
A council member read Section 127 of House Bill 1001, which takes effect July 1, 2025, saying community health centers that pay any nonclinical employee $400,000 or more annually could lose eligibility for local property-tax funding and most state grants (excluding Medicaid).
A provision in House Bill 1001 signed by the governor could make Hamilton Center ineligible for county property-tax funding and many state grants if any nonclinical employee is paid $400,000 or more, a council member informed the Vigo County Council.
The council member reading the provision said Section 127 takes effect July 1, 2025, and “says beginning after 06/30/2025, if a community health center provides compensation to any individual employee, not including clinical staff, including salary and benefits, in an amount that is $400,000 or more per year, then the community health center is not eligible to receive funding from, number 1, local property taxes, or number 2, state programs or grants, excluding Medicaid program.”
County legal staff told the council the county’s designation of a community mental health center entitles that provider to a portion of the property tax rate and that, under the attorney’s preliminary reading, Hamilton Center would have to bring itself into compliance with Section 127 to remain eligible for those funds in 2026. The county attorney said the onus to comply rests with the community mental health center but that the attorney’s office could notify the center if the council wished. “I would have no problem … advising them,” the county attorney said, but noted he did not believe the county had a legal obligation to do so.
Public comment during the meeting included a speaker who provided payment figures the county currently makes to Hamilton Center: $760,492 total for 2025 and $63,374.33 per month, and historical totals of about $714,906 for 2023 and $737,394 for 2024. The speaker asked whether monthly payments would automatically stop July 1 if Hamilton Center did not bring salaries into compliance.
County counsel explained that the commissioners’ office submits invoices and pays the provider; the council does not directly execute the designation. Legal and administrative follow-up was suggested: council members asked the auditor and commissioners to check whether any funds remain outstanding and, if so, how distribution would be handled if Hamilton Center were noncompliant.
The council did not vote on a formal motion to withhold payment. Instead, members discussed options, including verifying Hamilton Center’s compliance before making payments due in July and coordinating with the commissioners’ office. The county attorney said the commissioners’ office would likely lead any required next steps related to the community mental health designation.
