Porter County is set to have significant financial challenges over the next two years, with fiscal leaders weighing options to just “ make it to 2028”.
The county is facing a multi-million dollar shortfall next year, thanks in large part to the effects of Senate Enrolled Act 1. Signed by Indiana Governor Mike Braun in April, the mammoth tax reform bill will reduce the amount of property tax revenue available to counties and other local governments through a variety of new credits and deductions.
The new legislation promises a "short-term headache" for the officials tasked with keeping county services funded, but it also promises a significant boon just a few years down the line.
In Indiana, local income taxes are currently collected at the county level, with the proceeds distributed between counties, municipalities and other local government bodies in accordance with a statutory formula. SEA 1 will upend that system in 2028
Under the new formula, counties and municipalities will be responsible for setting local income tax rates independently. Entities of both types will need to adopt new 2028 rates in 2027, with the total local income tax for any given taxpayer capped at 2.9%.
The council has approved spending requests for a majority of the county's funds for 2026. The body heard proposals from department heads during budget meetings on Sept. 16 and 19. Some funds will see reductions in 2026; However, most categories' spending will remain the same.
Porter County's Sheriff's Office, Jail and Prosecutor's Office will present funding proposals for the council, when they meet again Thursday.
