Bauer votes against Republican tax hike on Hoosiers

Today, April 10, Indiana House Republicans passed Senate Bill (SB) 1 with an amendment that will potentially increase Hoosiers' local income taxes by $1.1 billion a year and cut police, fire, Emergency Medical Services (EMS) and public school services by $1.4 billion over three years. While the bill was rewritten with a second reading amendment on Wednesday with little time for policymakers or the public to review the real fiscal impact, it’s clear that SB 1 will not provide tangible property tax relief for Hoosiers. Republican leadership told Hoosiers it's time to “do more with less” while discussing this legislation, despite House Democrats’ concerns that SB 1 will bankrupt vital services provided by local governments.

State Rep. Maureen Bauer (D-South Bend) issued the following statement after voting "no" on SB 1:

“SB 1, which is being pushed by Republicans as 'property tax relief' is a threat to our communities across the state. Cities and towns will lose critical property tax revenue – money we use to fund schools, police, fire departments, libraries, and road maintenance. While the bill is masked as a property tax cut, it fails to provide any real tax relief to working families. The reality is that this legislation will lead to significant increases in Hoosiers' income taxes, and local governments will be forced to fill in the lost revenue elsewhere to fund essential resources while the state gets to evade responsibility.

“In St. Joseph County alone, SB 1 is expected to cut $108,875,000 over the next three years. The consequences of this bill are too risky: libraries in rural Indiana have stated they will have to consider shutting their doors or going virtual only and entire school corporations will be dissolved without any local input from their constituents. The bill caps fire territory tax rates at $0.40 per $100 of assessed value. Our own fire chiefs have told us that this cap would lead to personnel cuts and force fire stations in suburban areas to close.

“It forces public schools to share their local property tax dollars with charter schools even if those charter schools don’t serve the same neighborhoods or take on the same responsibilities. South Bend Schools alone could lose over $22 million in just a few years.

“The Republican party in Indiana continues to cut local resources, telling us that there’s ‘no money’ for real, tangible tax relief for working families: renters, first-time homebuyers, veterans, and seniors. We’re told the state can’t afford to expand the homestead credit or offer support to seniors on fixed incomes. Simultaneously, this bill hands out the largest tax breaks in business personal property tax cuts to a select few while our local services are left to scrape by.

“Our state is not broke—our priorities are. Due to poor fiscal management, the state has pulled hundreds of thousands from our general reserves to cover previous Medicaid budget shortfalls. Agencies across Indiana are being told to cut 5% from their budgets, meaning fewer resources for health care, transportation, and public safety.

“I’ve spoken to families across our district: seniors trying to keep up with rising assessments, renters who dream of owning a home, parents worried about their child’s school losing funding. These voices matter, and they’re being ignored in favor of rushed policy and political headlines.

“We cannot afford to gut the foundation of our communities. If we care about education, if we care about public safety, if we care about keeping our towns vibrant and livable, we have to say no to this version of SB 1.”

The bill now heads back to the Senate for a concurrence vote. During the House session on Wednesday, April 9, Gov. Mike Braun signaled that this was the Indiana GOP's final property tax plan, despite House Democrats still working to make the bill better on the House floor via amendments, which were all voted down by the majority.