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? <br />REASON FOR CUTS: House Enrolled Act 1001 is reducing property taxes for South <br />Bend property owners by a projected $21.3 million beginning in 2010. Local <br />governments depend on property taxes for most of their operating revenue, including <br />for public safety, neighborhood services, economic development, parks and basic <br />services. <br /> <br />? <br />OPTIONS FOR NEW REVENUE: The only option provided to local governments by <br />the state is to increase local option income taxes. St. Joseph County’s local option <br />income tax is now the 10th lowest of the state’s 92 counties. Any change to the local <br />option income tax would need to be approved by two of the councils from <br />Mishawaka, South Bend and St. Joseph County. <br /> <br />? <br />NEXT STEPS: The Council and Mayor Luecke are planning additional budget <br />meetings to review options within the proposed spending plan. Decisions about cuts <br />will be finalized in the first quarter of 2009. The Mayor and Council representatives <br />also will meet with representatives of the Mishawaka and St. Joseph County councils <br />to weigh changes to St. Joseph County’s local option income tax. <br /> <br />? <br />LEGISLATIVE OPTIONS: The Mayor will continue to lobby state officials for <br />alternative sources of revenue for supporting the cost of local government services. <br /> <br />- 30 - <br /> <br />