Residents will be able to voice their opinion on whether the Bartholomew County Council should divert as much as several million dollars from other taxing units to go toward renovating the county jail.
A public hearing on setting aside a percentage of existing local income tax funds for county jail needs has been set for Sept. 11.
The Bartholomew County Council could set aside anywhere from 0.01 to 0.02 percent of the existing tax revenue to be used for building or renovating jails, before any of the income tax proceeds are dispersed to cities, towns, townships, school districts and libraries.
Under a new state law that went into effect July 1, the amount skimmed off the top for jail purposes cannot exceed 0.2 percent of total LIT revenue.
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The 40 percent local income tax increase approved by the council in October began providing extra money to city and county government agencies, as well as 23 other taxing units, in January.
If the county’s plan goes into effect, money would be set aside into what financial consultant Jason Semler calls a correctional and rehabilitation facilities fund.
While the advertised ordinance calls for setting aside the maximum allowable amount of 0.20 percent of all LIT revenue, that does not reflect the council’s current intentions, Bartholomew County Auditor Barb Hackman said.
The maximum is being advertised to provide the council financial flexibility when actual Bartholomew County Jail renovation and staffing costs are better understood, council attorney Chris Monroe said.
While the council cannot exceed the advertised rate if costs come in higher than expected, members can always reduce the amount of money set aside for the jail, Monroe said.
Under three scenarios presented July 2 by Semler to the Bartholomew County Council, the amount of income tax money that would not go to the city of Columbus could reach as high as $2.49 million. The amount for the town of Hope would be reduced by about $75,000 in one of the scenarios.
On Tuesday, Hope town manager J.T. Doane and Hope clerk-treasurer Diane Burton asked for clarification about what the council was considering.
A week earlier, the council was asked to be sensitive to the needs of other units of government by Mary Ferdon, executive director of administration and community development for the city of Columbus.
But in response to the Hope officials, Hackman brought up another scenario where the town of Hope might lose about $27,000.
County officials have not decided how much money currently provided to cities, towns, townships, schools and libraries might be diverted into jail-related purposes.
There are a “million different scenarios” that might be considered that would have different financial impacts on other taxing units, Semler said.
Scenarios are calculated by not only figuring in different expenditure rates, but also from calculating varying amounts that might be taken out of different accounts currently holding LIT funds.
Often referred to as buckets during budget discussion, these accounts are divided into categories that include certified shares, public safety and economic development. While the amounts that are placed into some buckets are calculated by population, others are determined by other criteria including tax levies, Hackman said.
Hackman said the council is far from reaching any final decisions regarding the funding option, and has until the end of October to decide.
County officials are unsure whether the money could be used for jail operations and salaries in addition to building or renovating jails, something they are looking into.
The county is required to submit and advertise some type of written ordinance to the Indiana Department of Local Government Finance in order to start scheduling public hearings.
The need to invest heavily in jail renovations was largely caused by a change in state law regarding the housing of Indiana’s lowest level felons, council president Mark Gorbett said.
Since January 2016, nearly all convicted Level 6 felons have been housed in county jails instead of state prisons. That change alone brought about a 10 percent increase in the local jail population, Gorbett said.
Another factor that has led to jail overcrowding has been the ongoing opioid crisis, Sheriff Matt Myers said.
In order to address the subsequent overcrowding, an older section of jail that has been closed for several years will have to be reopened and additional staff will have to be hired, Bartholomew County Council member Chris Ogle said.
The county will have to come up with about $2 million more per year just to maintain the jail, Ogle said.
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A public hearing on an ordinance that would allow the Bartholomew County Council to set aside local income tax revenue for jail-related expenses has been scheduled for late this summer.
The hearing will be held at 6 p.m. on Sept. 11 in the fourth floor council chambers at the Bartholomew County office building, 440 Third St.
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