It appears that one of the last questions has now been answered regarding the Porter County Council’s proposal to provide funding help to local taxing units by tapping a portion of the $7.6 million in hospital interest earnings.

The Indiana Department of Local Government Finance said it sees “no negative budget repercussions” to the property tax levy of a local taxing unit that receives a portion of the hospital interest money, according to DLGF communication specialist Amanda Stanley.

Porter County Council members are considering distributing just under $2.9 million in hospital interest money to municipalities, schools, and townships, with each one receiving the equivalent of 1.5 percent of their property tax levy in 2007.

The funding assistance is intended to offset the impacts of this year’s delayed property tax bills. A number of taxing units have had to borrow more than usual to stay afloat, or they have lost interest earnings due to lack of tax revenue, or both.

Council members, however, wanted assurances that if the taxing units did receive the hospital interest money, the state would not count the money against how much they could raise in property taxes next year or later. The response from the DLGF appears to put that issue to rest.

The county commissioners must also approve the use of the hospital interest money. Council members agreed this week to send a letter asking for the commissioners’ support.

Posted 10/26/2009