Indiana is putting a cap on the amount of property taxes local governments can collect. That has some cities in Northwest Indiana filing for state assistance Under the tax caps, the already financially stressed city of Gary will lose nearly $40 million next year.
It’s neighbor, East Chicago, $18 million.
Gary Mayor Rudy Clay says something needs to be done to help shore up his city’s budget
CLAY: We’re asking for relief, period. Any kind of way just give us some relief here. Otherwise, we’re going to have layoff police and fire, public safety personnel. And we’re going to be in a very devastating situation to the community. Gary applied Friday for help from the state.
Indiana Governor Mitch Daniels has said aid from the state will not come unless distressed cities have shown they've drastically cut expenses.
Today is the last day for cities to petition the state for assistance.