MERRILLVILLE, IN — As a new wave of state-mandated property tax cuts begins to take effect, a few of Northwest Indiana’s top municipal leaders convened to address a looming fiscal reality: providing essential services with significantly less revenue.
The community forum, titled "Let’s Talk Local Government: Tax Cuts, Tough Choices, and Community Solutions," was Dee Dotsoned by the Lake County Advancement Committee as a Legacy Foundation Program. Held on January 22, 2026, at the Avalon Banquet Center, the event arrived as municipalities navigate the fallout of Senate Enrolled Act 1 (SEA 1), a legislative package designed to provide $1.3 billion in tax relief to Indiana homeowners.
Understanding the "Pizza" of Municipal Finance
The program opened with a briefing from Merrillville Town Manager Michael Griffin, who utilized a relatable analogy to explain property tax distributions. "I usually use the example of a pizza," Griffin explained. "The price of the pizza won't change, but the more people that show up, the less each of us has to pay".
Griffin emphasized that while property taxes have faults, they provide stability that income taxes lack. "For all of its faults, in a variety of economic cycles—upturn and downturn—through COVID issues and others, it tended to be a stable revenue source," he noted. Warning against a total reliance on income tax, he added, "I don't want essential services to be primarily financed by that, and then a downturn happens and we can't deliver it".
Mayors on the Front Lines
A panel of three mayors representing the diverse economic landscape of Lake County discussed the "tough choices" ahead:
- Mayor Josh Huddlestun (Hobart): Identified public safety as the service most at risk. "We have a full-paid city fire department. For a city our size, it’s a challenge to get them—it’s a challenge to keep it going during good times," Huddlestun stated. He challenged the sustainability of the cuts, asking, "Do you want to see a reduction in property taxes and potentially a reduction in home values because now we’re not able to perform the same services that we once were?".
- Mayor Eddie Melton (Gary): Focused on protecting specific programs, particularly federal housing funds. "I would probably say on the federal side it would be our CDBG block grant money to ensure that we can provide more housing for residents in the future," Melton said.
- Mayor Pete Land (Crown Point): Addressed the difficulties of managing rapid residential expansion amid tightening revenue caps.
Innovation through Collaboration
The conversation, moderated by South Shore CVA CEO Phil Taillon, shifted toward finding "Community Solutions". Legacy Foundation President Kelly Anoe noted that the mayors were brought together because they are "experiencing a lot of the similar challenges and are looking at similar solutions and collaborations".
One such solution involves lean operations through technology. Mayor Melton explained that Gary is "using more technology... knowing that we don't have those funds to expand officers" to help address crime. Despite the hurdles, Michael Griffin found a silver lining in the pressure to modernize: "I think it's making us think in a significant way about how we can innovate within the context of a seemingly ever-changing public finance system".
"This timely conversation offered a unique opportunity to hear directly from local leaders about the challenges ahead," said Taillon.
