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Mayor Angie says new state law will shift costs to Michigan City despite property‑tax cuts
Summary
Mayor Angie addressed the Michigan City Finance Committee April 15 to warn that Indiana’s recently signed Senate Bill 1 will reduce local property tax revenue and likely shift costs to cities and schools; she cited preliminary county impact numbers and urged local planning for revenue options.
Mayor Angie spoke to the Michigan City Common Council Finance Committee on April 15 about the fiscal implications of Senate Bill 1, which she said was passed late and signed into law the night before by Governor Braun.
"Governor Braun signed it into law last night," Mayor Angie said during the public‑comment portion of the Finance Committee meeting. She said the bill — which incorporates elements of House Bill 1402 — will reduce property tax collections and shift fiscal pressure to cities and schools unless other revenue options are adopted.
Mayor Angie referenced a fiscal‑impact summary posted on the IGA website showing estimated impacts for La Porte County of about $5,330,000 in fiscal 2026, $6.3 million in 2027 and roughly $6.5 million in 2028. She told the committee public schools statewide face much larger cuts, which she cited as $744,000,000 over three years.
The mayor said a provision that would have taxed business personal property was removed from the final bill after lobbying by mayors and other local officials; she described that removal as a positive outcome for Michigan City. She also warned that although the bill reduces property taxes for some homeowners, it effectively pushes decisions and funding pressure onto cities by enabling local income tax increases and other local options. Mayor Angie said the city may need to consider a local income tax or a food and beverage tax to offset lost revenue and to let visitors help pay for seasonal service demands.
Mayor Angie said local senators Bohaczek and Poe voted against Senate Bill 1 and encouraged residents to thank them. She closed by saying the city must wait for formal numbers from finance staff to quantify the local impact and that the administration will use those figures to plan for the next budget cycle.
No formal action on the bill or local taxing options was taken during the finance committee meeting; the mayor’s remarks were recorded during the public‑comment portion and were informational for committee members and the public.
