February 3, 2023

The Big Issues

HOUSING

  • Multiple bills stemming from the Housing Task Force to address Indiana’s housing shortage have made progress this week, including an Aim legislative initiative.
  • HB 1005 is the House Republican agenda bill that came from the task force. It includes a framework for a revolving loan fund to support infrastructure for housing projects. The application includes several items to be considered by the Indiana Finance Authority, including prioritizing projects for local governments that voluntarily waive certain local standards.
  • SB 300 and HB 1081 support Aim’s legislative initiative to expand the residential TIF program. Both bills remove the restriction on which communities can access this tool based on less than 1% growth in housing stock.
  • HB 1005, authored by Rep. Doug Miller (R-Elkhart), passed the House Ways and Means committee on Wednesday with a vote of 18-0. SB 300, authored by Sen. Linda Rogers (R-Granger), passed the Senate with a vote of 28-19 and will move on to the House for consideration during the second half of session.

TAX INCREMENT FINANCING

  • HB 1085 would require 20% of incremental revenue from TIF to be passed to school corporations in the allocation area to be used for career and technical education (CTE) programs for all new TIFs going forward. It would also add a member of the local school board to the redevelopment commission as a voting member.
  • Aim opposes this bill because it would restrict the flexibility of TIF and local ability to effectively finance large economic development projects. It would also erode municipal control of economic development in their communities.
  • HB 1085, authored by Rep. Bob Cherry (R-Greenfield), was heard in the House Ways and Means committee on Thursday but was held. It could be added back to the Ways & Means calendar to be amended or voted on a later date.

EMINENT DOMAIN

  • SB 220 would add a new compensation category to eminent domain condemnations for “going concern,” most commonly understood as losses for businesses that are taken in part or in whole by eminent domain.
  • Aim opposes this bill because it will add cost to road projects, utility extensions, economic development projects, and any other municipal function that uses eminent domain. It could also result in increased litigation and delays to critical projects.
  • SB 220, authored by Sen. Jim Buck (R-Kokomo), was heard in the Senate Local Government committee on Thursday but was held to be amended or voted on a later date.

RESIDENTIAL PROPERTY TAXES

  • Addressing increases to residential property taxes continues to be a major topic of consideration this legislative session.
  • HB 1499 would lower the 1% homestead property tax cap to 0.9% and provide an additional homestead credit of $100. Each of these changes would phase out over the next 4 years. Aim opposes this bill because any proposed property tax reform should recognize the ongoing and growing revenue needs of local governments in this period of economic volatility. Expenses for local governments have risen due to inflation along with expenses for citizens, business, and the state government.
  • HB 1499, authored by Rep. Jeff Thompson (R-Lizton), was heard in the House Ways and Means committee on Thursday but was held. It could be added back to the Ways & Means calendar to be amended or voted on a later date.

PUBLIC HEALTH

  • As city and town leaders work to grow and improve their communities, investing in people must be at the forefront of those efforts. Governor Holcomb’s creation of the Public Health Commission was a necessary and productive exercise that yielded a several findings and recommendations that Aim supports.
  • HB 1001 and SB 4 provide new state and local funding resources to public health departments and changes their governance to include municipal input and options for regionalization. also provides new statewide resources for data collection and analysis to support public health departments.
  • HB 1001, authored by Rep. Jeff Thompson (R-Lizton), is the state budget and is being heard on an ongoing basis in the House Ways and Means Committee. SB 4, authored by Sen. Ed Charbonneau (R-Valparaiso), passed the Senate Health and Provider Services Committee on Wednesday with a vote of 12-0.
 

AIM LEGISLATIVE MOMENT

“The public health commission issued its findings several months ago and now we’re at the point where we’re trying to put most of those findings into state statute. I think it’s really important for us. We always talk about parks, trails, infrastructure, all those things that are critically important to the place and the well-being of a community. What we haven’t paid as much attention to is the health of our individual citizens.”

– Matt Greller, Aim Chief Executive Officer

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