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03-04-19 Personnel and Finance (Tax Caps/Impact)
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03-04-19 Personnel and Finance (Tax Caps/Impact)
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City Council - City Clerk
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Committee Mtg Minutes
City Counci - Date
3/4/2019
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•CITY OF SOUTH BEND ! OFFICE OF THE CLERK <br /> Mr. Parker answered, I am not the expert on this, but as I understand it, if the patient is not in a <br /> life-threatening situation, our ambulances will take the patient to either Memorial or Saint Joseph <br /> Hospital,whichever one(1)they want to go to. A lot of times that decision is driven by insurance. <br /> But, if they are in a life-threatening situation then they are required, by law, to take the patient to <br /> the closest hospital. <br /> Committeemember Broden asked, This issue, though, is not unique to South Bend, correct? This <br /> is national? <br /> Mr. Parker answered, So, Medicaid, this is actually an Indiana-driven program. It is not unique to <br /> South Bend. It is an Indiana program that all municipalities that are participating in the program <br /> are dealing with. <br /> Committeemember Broden asked, But do most states have that Federal-State delivery? <br /> Mr. Parker answered, I am not aware of that. I don't know enough about Medicaid programs in <br /> other states to comment on whether they have a program similar to this. But, in Indiana, all <br /> municipalities that operate ambulance services are dealing with this. <br /> Mr. Parker continued, Another issue I wanted to touch on briefly is the gasoline tax distribution <br /> change. So, if you remember back in 2017, the State Legislature passed a gasoline tax increase <br /> which increased the tax by ten percent (10%). At that point, local governments, who received a <br /> portion of that gasoline tax were fairly optimistic about a large increase on gas tax proceeds that <br /> we could expect to get. We did see a pretty large jump 2018. We went from $5.16 million in 2017 <br /> to $6.55 million in 2018. However, in 2018 the State Legislature passed another law that changed <br /> and tweaked the distribution formula on how that gasoline tax is distributed to local governments. <br /> The impact of that law is that a larger portion of that gasoline tax is retained by the State and a <br /> smaller portion was ultimately distributed to local governments. This is why you see a bit of a drop <br /> down going forward in 2019 and beyond from where we would have expected that to be otherwise. <br /> You can see it's still projected to be a slight increase from where we were. It is not as though we <br /> are losing this revenue entirely. It's not to the extent to where we are expected to be when that <br /> original gas tax increase passed 2017. <br /> Committee Chair White stated, Dan I know that some of the Council Members were looking at <br /> identifying some of these dollars to support our streets, curbs, and sidewalks. I know that's <br /> probably what we will continue to be a discussion as we prepare for the 2019 budget. <br /> Mr. Parker replied, Yes, as I said, streets, sidewalks, and curbs are the expenditures there, <br /> particularly in light of the reduction of the gas tax continue to outpace the revenue. <br /> Committeemember Broden asked, How about the impact of the electric cars, alternative fuel and <br /> all that good stuff? <br /> Mr. Parker answered, The electric cars and electric fuel is a part of that same law. The Legislature <br /> did pass a law on alternative fuel cars called an excess tax. To register a hybrid in Indiana actually <br /> costs $150 more than a regular car. With the thought being that you would not be paying the gas <br /> tax as often and so you will pay more there. <br /> EXCELLENCE ACCOUNTABILITY I INNOVATION INCLUSION EMPOWERMENT <br /> 455 County-City Building 1227 W.Jefferson Bvld South Bend,Indiana 46601 p 574235.9221 f 574.235.91731 I I D574.235.5567www.southbendin.gov <br /> 6 <br />
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