GREENFIELD — Six weeks have passed since Hancock County residents publicly spoke out against raising income taxes to pay for a bigger county jail. The county council hasn’t voted on the tax hike yet, but that’s not because of local opposition. It’s due to a lobbying effort at the Statehouse.
County leaders want the Indiana General Assembly to modify the current statute regarding local income taxes funding new correctional or rehabilitation facilities to clarify how much of those costs could cover operations, such as employee salaries, and to extend the period of time for the tax by two extra years.
Hancock County plans to raise income taxes by 0.2 percent to pay for a 440-bed jail on a nearly 20-acre parcel of county-owned property along U.S. 40 between North County Roads 400E and 500E. The Hancock County Board of Commissioners estimates the jail could cost upwards of $43 million.
The state allows counties to raise their income tax rate — money collected from residents’ paychecks — by no more than 0.2 percent for 20 years to pay for a new jail. But the law isn’t clear on how counties can spend the money, whether that’s on construction or operational costs. Five counties in 2018 approved 0.2 percent hikes to build jails — Cass, Carroll, Dearborn, Huntington and Jennings counties.
The county has asked lawmakers to lengthen the time frame of the tax rate to 22 years, giving counties more time to collect money to finance projects, said Bill Bolander, president of the county council. They also want counties to be able to earmark half of the 0.2 percent tax on operations and make it so that portion of the tax would be permanent and not sunset after 20 or 22 years.
“If legislation is cleaner it would be a lot easier,” Bolander said, adding the council intends to pass the tax increase regardless of the legislature’s decision. He said they could vote on the rate change in May.
Greg Guerrettaz, the county’s financial consultant, said pushing off the vote won’t derail the county’s timeline for construction or financing of a revenue bond to get funds sooner.
Approving the tax hike in May would shift the county’s rate from 1.74 percent to 1.94 percent starting in October, and the county would start collecting money from the state a few months later. Construction is slated to begin in late September and last until late December 2020, according to a tentative timeline from RQAW, the Indianapolis-based firm the county hired to design the jail.
Guerrettaz said he’s been working with Greenfield GOP lawmakers Sen. Mike Crider and Rep. Bob Cherry as well as Rep. Jeff Thompson, R-Lizton, to blend the proposed changes into other legislation regarding local income taxes. Guerrettaz also consultants Hendricks County, which Thompson represents. County officials there plan to add on to its jail.
The Indiana Sheriffs Association estimates 40 to 45 counties are looking to build new or expand their jails.
Martha Vail, county councilwoman at large, said she wants to make sure the income tax increase can adequately pay for staffers needed to operate the larger facility. Hancock County Sheriff Brad Burkhart has previously said the 440-bed jail would need about double the staff — about 50 jailers — than the current 157-bed facility.
“We’re not going to build it if we can’t staff it,” Vail said.
Over the past several months, Vail said many members of the public have been confused on how much the jail might cost and why the county decided to increase income taxes to fund the project. She said in order to be more transparent and justify raising taxes while also remaining “fiscally responsible,” the council needs to have more evening meetings to explain the process to the public.
“If you’re not on top of it, it’s hard to understand,” she said.
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The Hancock County Council could vote in May on the local income tax increase, which would raise the rate from 1.74 percent to 1.94 percent starting in October. Revenue for the tax increase — which would remain in place as long as 20 years unless the legislature votes to makes it longer — would go to pay for the new jail. Construction could begin this fall, and the jail could be open by late 2020.
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