- Legislation was filed that will let the Vanderburgh County Council vote to raise the county's income tax to pay for a jail expansion.
- The average household would pay $107 extra in taxes. The county would have an extra $11 million in revenue.
- The bill would allow the county to increase the taxes without the city's vote.
It's several "ifs" from happening, but proposed legislation to increase the Vanderburgh County income taxis the first major step toward tackling a perpetual problem of overcrowding and understaffing at the county jail.
If approved by the state and voted on by county officials,the average Vanderburgh County household would pay an extra $107 a year on its income. It would affect all people who live in Vanderburgh County, including Evansville.
The bill gives the Vanderburgh County Councilthe optionto impose up to an extra 0.25 percent on the local income tax. Residents already pay a 1 percent tax on their income. The current version of the bill restricts the money to a few uses, like paying for jail expansion, operations and old bonds on the facility.
A quarter of a percent increaseon the local income tax would mean an extra $11 million in 2018, $11.5 million in 2019 and $12 million in 2020, according to state fiscal experts.
The bill was filed last week, published Wednesday andassigned to the House Ways and Means Committee. It doesn't have a hearing date, yet.Rep. Holli Sullivan, R-Newburgh, authored the bill. Sullivanis member of the Ways and Means Committee.
Although it's a Statehouse bill that opens a new funding mechanism for the County Council, local officials have pointed to the County Commissioners as the main push on the project. The legislation would allowthe county to bypassEvansville city government from having a vote on the increase.
Vanderburgh County Commissioner Cheryl Musgrave, R-District 3was unavailable to answer questions about the legislation from the Courier & Press this week.
Commissioner President Bruce Ungethiem, R-District 2, was also unavailableand didn't answer the Courier's questions directly. Ungethiem released aprepared statementthrough Indianapolis-based public relations consultant Stephanie McFarland.
"We see it as an act of forethought to ensure the county has all options available in considering how to address the overcrowding at the Vanderburgh County Jail. Do note, however, that the county may opt to never exercise this option -- but it has to ensure it has the legal authority to do so if the tax is ultimately needed to assist with managing the overcrowding at our county jail."
Overcrowding is what led to the creation of the county's current jail located on Harlan Avenue off U.S. 41.
CASH ASTHE CURE?
There can be no remedy without funding, Vanderburgh County Sheriff Dave Wedding said.
The county's 512-bed jail was built in 2005 for $35 million.
The jail's population was 628 Thursday afternoon, and it eclipsed a 700-person occupancy in 2016.
Indiana state jail inspection reportshave marked down the jail for its inmate population and its staffing levels.
The county employs95 people to oversee and guard the jail and community corrections facility --84 corrections officers and 11 supervisors for more than 700 inmates on a normal day.
"If someone sees and can’t say that’s a very serious problem that doesn’t need immediate attention, I'd say somebody's remiss in the way they think," Wedding said.
He's tried to fix the problems, he said. Letters and requests to local, state and federal elected and appointed officials haven't resulted in much.
"I usuallyget a deaf ear," he said.
Raising taxesis a last resort after all other options are explored, Wedding said. But those efforts aren't helping.
The sheriff's office has already freed up some beds by sending inmates to Daviess, Pike and Knox counties to house them for $35 per day per person. A change in state law forced localjails to house low-level felons who were sentenced to less than a year rather go to the Indiana Department of Corrections.
The jail will cost the county$7.5millionto run in 2017. Andanother $2.3 million to pay off the debt on the jail's 2006 construction.
The jail was built with two housing pods, each with 256 beds. Previous estimates put adding a third pod at $15 million.
"I will support my commissioners in trying to fund a remedy to this long-term problem," Wedding said.
'AVALANCHE OF TAXES'
Vanderburgh County Council Finance Chairman Tom Shelter, R-District 2, is approaching the idea with more skepticism.
"Depending on how much we talk about, a Local Option Income Taxcan be very expensive," Shetler said.
Shetler is concerned about the discussions around increasing other taxes, including the gas tax and vehicle registration fees.
"I really don't want an avalanche of taxes hitting the taxpayers in the face," he said.
The average household income in Vanderburgh County is $43,046, which means the average home in the county pays $430 a year in income taxes and would pay an additional $107 if the full 0.25 percent increase takes effect.
Shetler wants to continue looking at other options, including paying to send more inmates to other jails, before considering a vote on increasing the income tax.
"I still want to hear all the discussion, and I want everybody to do their due diligence. I want everybody to think real hard about what's best for our community when it comes to spending the tax dollars," he said.
City Council attorney Josh Claybourn said the legislation would give the county a workaround from involving city officials in the decision to raise taxes.
The Vanderburgh County tax council is made up of Evansville, Darmstadt and county officials. Evansville has a two-thirds control over the vote, which means it has control over any new tax proposals. It's why the City Council was able to lower the property tax relief rate increasing property tax bills for the entire county, even outside the city limits.
The bill givesthe power directly to Vanderburgh County Council to vote on the increase.
Staff writer Kaitlin Lange contributed to the report.
