Indy in the Money?
The city of Indianapolis could be sitting on a few extra million dollars. According to some information that’s recently come across my desk, the city has been underpaid in distributions from the state’s excise tax on alcohol sales. The city has been underpaid since 1988 to the tune of nearly $9 million, but some folks say it could be as high as $16 million. The city and state agree in principle that Indianapolis has been underpaid, but they disagree over the exact amount. Where this gets interesting is that even if the city is owed a few million, it owes the state even more, due to child welfare costs and juvenile justice issues. So there could be a situation where the city is entitled to $16 million, but doesn’t get it because it has to pay the state. However, the good news in all this is that the city would get an extra $500,000 per year in excise tax money; that would impact other municipalities across Indiana because it would mean a decrease in their allocations. This should all be worked out in about a month. Stay tuned…
