Committee approves one-year delay and technical fix to correct wagering-tax payments to Gary

The Appropriations Committee on an edge-of-session vote advanced House Bill 1448 on a bipartisan 13-0 vote after approving an amendment, 11-1, that delays the bill’s payoff schedule by one year and makes technical changes to how the comptroller will implement the statute.

The bill was offered by Representative Hal Slager to correct what testimony described as an administrative error in the 2019 gaming law (House Enrolled Act 1015) that led to supplemental wagering-tax distributions continuing to be made to the City of Gary instead of to other designated cities. Jennifer Thuma, general counsel for the state comptroller’s office, told the committee that the comptroller’s office “was unaware of the change in the statute and continued making the wagering tax distributions as they always did.”

Why it matters: The statute enacted in 2019 created limited-time supplemental distributions that depended on multiple conditions. The comptroller’s office says it will withhold Gary’s 2025 wagering-tax receipts to comply with the statute once the total amount owed is known; officials estimated the additional amount could be up to $6,000,000. The amendment moves the start of withholding out one year so municipalities can set budgets without an unexpected mid-cycle cut and changes the schedule to monthly collections and distributions to speed payments to affected cities.

Committee discussion and testimony emphasized local impacts. Mayor Eddie Melton of Gary told the committee the city supports following the statute but said an immediate withholding this year would be a “fiscal constraint” and would meaningfully affect a city budget he estimated at roughly $66,000,000; he said Gary’s reserves are about $4,000,000. “Currently, the comptroller’s office is withholding funds from the city of Gary because of the legislation and rightfully so because it is the law,” Melton said, adding that the amended timing would help Gary remain solvent for the current fiscal year.

Mayor Angie Deitch of Michigan City said her city supported the original bill language but also understood the committee’s compromise. “For Michigan City, we just want what was legislated in a more timely manner. I understand if it has to be delayed a year, but I don't want this to drag on for a decade,” Deitch said, urging assurances that payments would follow within the agreed schedule when the program resumes.

Committee members and staff described the amendment’s monthly payment language as a solution to a technical problem: if Gary hits the wagering-cap early in a fiscal year, monthly collection lets the comptroller capture and redistribute the excess sooner than an annual reconciliation would allow. Senator Randolph asked whether the amendment removed language allowing the comptroller to “make adjustments in a subsequent month” if a single month's withholding was insufficient; the sponsor confirmed the monthly approach addressed that concern.

Actions and votes: - Amendment No. 10 (delay start by one year; technical fixes; monthly payments): moved by committee (mover not specified in transcript), approved in a roll-call vote 11 yes, 1 no. (Recorded on the floor as “Amendment passes 11 to 1.”) - Final passage of House Bill 1448 (as amended): moved and seconded in committee; passed on a roll-call vote recorded as 13 yes, 0 no.

Authorities and implementation notes: Committee testimony referenced House Enrolled Act 1015 (2019 gaming bill) as the statute that created the supplemental distributions. The comptroller’s office said it will calculate the total amount owed once fiscal-year 2025 wagering receipts are complete and will withhold Gary’s 2025 receipts as allowed by the amended statute; those withholdings would be released to the other cities after the statutory conditions are met and the bill receives final enactment.

What’s next: With committee approval, the bill moves to further floor action. Comptroller representatives and municipal leaders asked the legislature to preserve the one-year delay and the monthly payment structure to minimize short-term municipal budget disruption.

Ending note: Committee members framed the vote as a compromise aimed at making affected municipalities whole while avoiding an immediate fiscal shock to Gary; legislators said they will continue to coordinate with the comptroller’s office on the technical steps required for implementation.