A bit of good news from Michele McNeil in the Indianapolis Star. County income taxes resulted in higher than expected revenue.
The reasons for the increase? Hoosiers made more money in 2004, the Department of Revenue processed their tax returns prior to the end of the fiscal year on June 30, and several counties raised their tax rates.
I know that in Tippecanoe County, this increased revenue means that the county probably will not have to use interest on their cumulative bridge fund. That fund has money in it, but in a perfect world you maintain the principal and interest and repair your bridges when they run down. It’s kind of eating your seed corn to spend it on regular operating expenses. (And, to continue the drum beat of all-Katrina, all-the-time, we’ve seen a worst case scenario of what happens when you don’t keep your infrastructure in tip-top shape.)
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