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County leaders warn SCA 1 will reduce local revenue in 2027–28; urge growth to sustain services
Summary
Councilman Adam Kronka told the town hall that state changes (referred to as SCA 1) will reshape local tax structures and reduce county property‑tax revenue in 2027–28, pressing the county to grow its tax base and seek efficiencies to maintain services and staff pay.
Councilman Adam Kronka told residents the most consequential budget risk facing LaPorte County is how a recent state change (described in the meeting as SCA 1 / Senate Bill 1) will affect local tax structures. "What it does is in the 2028 session ... there is a change to all the structure for when it comes to local income taxes ... everything gets wiped off the table and then brought back," Kronka said, and he warned the changes will result in reduced county revenue in 2027 and 2028 unless the county finds new revenue sources.
Kronka said the county is working with consultants, including Baker Tilly, to forecast the impact and identify options to balance the 2026 budget while preparing for reductions in subsequent years. "Any changes that we make to the budget for '26, we have to have solutions to be able to maintain that budget in '27 and '28," he said.
Officials at the town hall also flagged staffing and retention concerns: county employees, Kronka said, are leaving for higher private‑sector pay and the county will need to consider raises, cost reductions and ways to grow the tax base through industry and housing growth.
The discussion was framed as a preview of budget challenges rather than a set of immediate changes; commissioners said they will continue forecasting work and discuss options as the state timetable clarifies.
