Boone County Allocates $7.9M for Public Safety LIT in 2026 Budget Discussion

During the recent Special Town Council meeting in Whitestown, Indiana, discussions centered on the town's public safety funding and the implications of Local Income Tax (LIT) changes for the upcoming years.

A key focus was the anticipated revenue from public safety LIT for 2026. Officials discussed projections that estimate collections could range from $7.9 million to $8.2 million, depending on whether the growth rate is around 7% or 12%. This funding is crucial as it supports essential services like police and fire departments. The council emphasized the importance of these funds, noting that while the base revenue is relatively stable, the supplemental funding remains unpredictable.

The conversation also highlighted the complexities surrounding LIT, particularly how changes in tax rates could affect residents. If Whitestown decides to implement its own LIT tax, residents could face higher overall tax rates, potentially leading to confusion about double taxation. The maximum combined rate for all taxing units in Boone County could reach 2.9%, depending on how local governments choose to set their rates.

Council members expressed concerns about the future of LIT calculations and the need for clarity in state legislation. There is a push from local officials to advocate for changes that would simplify the tax structure and ensure fair distribution of funds among various departments.

In addition to public safety funding, the meeting touched on the parks budget, although it received less attention. The council members acknowledged the importance of parks and recreational services but primarily focused on the pressing needs of public safety funding.

As Whitestown prepares for the upcoming budget year, the discussions from this meeting will play a significant role in shaping how public safety and community services are funded, ensuring that residents continue to receive the support they need. The council plans to revisit these topics in future meetings as they finalize their budget proposals.