Mayor warns state property tax changes could force local income tax or layoffs in Hammond

Mayor Tom McDermott told attendees Jan. 28 that recent state legislative changes will reduce property-tax revenue available to Hammond and could require municipalities to find replacement revenue. A resident asked about a bill affecting senior property taxes; McDermott said the city has local senior credits (about $500) but that a separate state measure providing a $300 statewide credit could be offset by deeper municipal revenue cuts under Senate Bill 1.

McDermott said the net effect for Hammond will be substantial and estimated the city could lose about $15,000,000 across municipal budgets. "Hammond's going to lose $15,000,000 and we know it's coming," he told the meeting, and he warned that to replace lost revenue municipalities may be forced to adopt local income taxes, cut services or close programs. He illustrated the household effect with a hypothetical working couple who would receive $300 from the state but could face local income-tax increases that more than offset the credit.

City Controller Megan Flores provided rough budget figures in the discussion: police and fire together account for a large share of the municipal budget (Mayor and controller discussed totals in the tens of millions), which constrains what can be cut. McDermott said police and fire recruit classes were honored despite the freeze and that public safety hiring was prioritized; the rest of city hiring is paused pending clearer revenue prospects.

The mayor framed the hiring freeze as prudent given uncertainty: hiring new staff only to lay them off within a year would be unfair to workers. He said the city will follow up with department heads and encouraged residents to use Hammond 311 for issue reporting. There were no formal votes or new ordinances introduced at the meeting.