With a heavy snowstorm pummeling the state, the town hall — originally scheduled to take place at Bloomington’s Unitarian Universalist Church — went virtual. Progressive Indiana Network was proud to help broadcast it to a wider audience. Natalia Nelson at the Indiana Daily Student had the following write-up of the event:
Snow plow maintenance, sheriff’s office vehicle replacements, food pantry support and raises for local government employees.
These were just some of the areas local officials warned could take a hit under Senate Enrolled Act 1 at a virtual town hall Saturday.
The event, “It Takes a Village,” was sponsored by groups including Reverse Citizens United of Monroe County, Indiana Rural Summit, Monroe County Democrats’ Club and Organizing Indiana. Over 100 people attended via Zoom.
The town hall revolved around the continued impacts of SEA 1, a property tax relief law signed by the governor last year. It gives tax credits to homesteads, reducing their property tax bill by 10%, and increases exemptions for personal property taxes for businesses. It also slashes how much local income tax governments can collect by lowering the maximum rate from 3.75% to 2.9%.
Speakers expressed concerns about the bill’s impacts on public services, infrastructure and tax rates. The bill’s author, Republican Sen. Travis Holdman, said it was important to provide a fair balance between local government’s needs and those of homeowners and to promote transparency.
State Rep. Matt Pierce, a Democrat representing Bloomington, said at the town hall the wealthiest Hoosiers are benefiting the most from the law, whereas those whose homes have low assessed value get little property tax relief and will likely end up paying a larger chunk of income in income tax.
“The tax and fiscal policy, the state is not working to move our state forward, and it’s not investing in individual people,” Pierce said. “It’s creating wider income gaps.”
Bloomington Mayor Kerry Thomson also spoke on the bill, saying she anticipated residents would end up paying more taxes than before SEA 1 was passed once the city implements local income taxes to recover some of the lost property tax revenue.
She said the city was seeing a $1.4 million loss in the 2026 budget, which it anticipates will grow to $30 million in lost revenue in two and a half years. She said the city would continue to focus on meeting the basic needs of its residents and stretching existing funds to make them last longer, but it would increasingly struggle to fill social service gaps.
Bloomington City Councilmember Hopi Stosberg said it was hard to say what she would suggest cutting from the budget. If the city raises income taxes to recover revenue from property taxes, she said, that’s just shifting the tax burden in ways that are “really uncomfortable.”
Her spending priorities included keeping streets safe and clean, clean water, emergency services, trash pickup, fair salaries for city employees and operational transportation corridors.
County officials shared those sentiments. Monroe County Councilmember David Henry said SEA 1 puts the county council in a horrible situation to choose which of the community’s essential services get prioritized. The Board of Commissioners have had to pull back from funding projects like rural internet productivity, Commissioner Jody Madeira said.
“We’ve had to pivot in just sometimes fighting for basic services,” she said.
Monroe County Sheriff Ruben Marté said the sheriff’s office has always been conservative with taxpayer dollars, trying to save costs in jail kitchens and on patrol vehicles. But as a result of SEA 1, he said, the office may need to delay vehicle replacements and technical upgrades.
“The areas most at risk are not extra,” Marté said. “They are staff, training, equipment and core public safety services.”
He said in order to adapt, the sheriff’s office will prioritize public safety, emergency response, jail security and policing. Discretionary spending, he said, will be reviewed by the office before funding shortages compromise frontline services.
Township trustees worried their services could also take a hit. Benton Township Trustee Michelle Bright said that if townships receive less or no funds from local income taxes due to SEA 1, the budget might have to be cut by one-third. The township would have to start reducing non-essential services, such as cemetery mowing, she said.
Efrat Rosser, Bloomington Township Trustee, said she estimated an immediate revenue loss from SEA 1 of about 5% of the township’s budget, or $15,000. She said due to the loss, the township wouldn’t be able to add part-time support for a food pantry or expand a service that helps people depending on fixed income like social security manage finances and pay for housing.
William Ellis, a Republican and an Ellettsville town councilmember, said the town was unable to give raises to its employees due to a budget shortfall, and in the future Ellettsville may shift to a “longevity system of rewarding people” rather than standard increases each year.
“When it comes to SB1, I’ve said it’s the worst of both worlds,” Ellis said. “I don’t think very many residents are going to see tax savings from this, but what they have seen is unable to increase any services of parks and anything.”
In closing, host Steve Brewer said he hoped the town hall would inspire a greater awareness of the challenges faced by local governments and organizations and encouraged viewers to vote.
“It’s up to us to support candidates who will listen to local voices,” he said. “It is the decisions of state and federal officials that frustrate our best efforts to solve the problems that beg for attention.”
Chapter Markers
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0:00:00 - Introduction & Opening Remarks
0:03:51 - Rep. Matt Pierce - State Tax Policy & Impact on Local Government
0:09:58 - Mayor Kerry Thomson - Bloomington City Budget Response & Revenue Challenges
0:15:38 - Bloomington City Councilmember Hopi Stosberg - City Council Priorities & Spending Philosophy
0:21:18 - Ellettsville Town Councilmember William Ellis - City Revenue & Property Tax Discussion
0:26:31 - Monroe County Councilmember David Henry - County Budget Challenges
0:31:02 - Sheriff Ruben Marte - Law Enforcement & Corrections Budget
0:35:30 - Monroe County Commissioner Jody Madeira - County Budget & State Mandate Impacts
0:39:29 - Township Trustee Michelle Bright - Rural Township Services & Budget
0:42:58 - Township Trustee Efrat Rosser - Urban Township Assistance Programs
0:47:58 - Megan Betz (Mother Hubbard’s Cupboard) - Food Security & SNAP Impact
0:53:59 - Rev. Forrest Gilmore (Beacon/Shalom) - Homeless Services & Housing
1:00:32 - Tracy Hutchings-Goetz (Hoosier Action) - Medicaid & Healthcare Policy
1:09:41 - Erin Aquino (Exodus Refugee) - Refugee Resettlement Services
1:16:11 - Keri Miksza (ICPE) - Public Education Funding & Vouchers
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1:20:48 - Q&A Session Begins
1:20:48 - Food Security & Hunger Response
Question: “What response has there been to hunger in Monroe County because of cuts from the federal budget as well as state governments?”
Respondent(s): Megan Betz (Mother Hubbard’s Cupboard)
1:24:05 - Affordable Housing Definition
Question: “Who decides what is affordable housing? Is it a standard equation? How do we get around legislation that blocked municipalities from regulating rents?”
Respondent(s): Hopi Stosberg (City Council Member)
1:27:42 - Public Education Cuts & Vouchers
Question: “Could Matt Pierce address the impacts of cuts to public education via private school vouchers? The unfair lack of requirements for privates and charters, the no income limit on getting vouchers, the lack of accountability in terms of testing and oversight. Was most of this in SEA 1 also?”
Respondent(s): Rep. Matt Pierce
1:31:12 - ICE & Immigration Enforcement
Question: “What is the local plan for when (not if) ICE comes to town?”
Respondent(s):
- Sheriff Ruben Marte (initial response)
- Mayor Kerry Thomson
- Commissioner Jody Madeira
1:38:53 - County Jail & Long-Term Debt
Question: “Why is Monroe County proposing a $250 million prison and what will this do to Monroe County’s long-term debt?”
Respondent(s):
- Commissioner Jody Madeira
- David Henry (Monroe County Council)
1:44:05 - Sheriff’s Department & Sanctuary City Lawsuit
Question: “What was the result of the Indiana Attorney General’s lawsuit claiming that the Monroe County Sheriff’s Department was violating the anti-sanctuary city statute?”
Respondent(s): Sheriff Ruben Marte
1:46:15 - Teacher Contract Requirements (HB 1004)
Question: “Current House Bill 1004 would remove required work hours from individual teacher contracts, giving school districts unilateral authority to add duties and extend work days without additional compensation. 25% of teachers in Monroe County already work a second job. Can officials please work to reject this?”
Respondent(s):
- Rep. Matt Pierce
- Hopi Stosberg (City Council Member)
1:50:28 - Trans Community Protections
Question: “With the constant attacks by our legislature on the trans community, what can our state and county governments do to protect them, especially as it pertains to public access?”
Respondent(s):
- Megan Betz (Mother Hubbard’s Cupboard) - regarding grant reporting flexibility
- David Henry (Monroe County Council) - regarding Sophia Travis grant program
- Jody Madeira (Commissioner) - regarding employment protections
1:54:00 - Closing Remarks & Thank You
