Terre Haute mayor warns state tax proposals could force staff cuts

Terre Haute City · December 13, 2024

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Summary

Mayor Brandon Sackbun told the city council the administration is preparing five‑year revenue projections and warned state proposals to reset property-tax assessments and add an income tax could require roughly 15% staff reductions in Terre Haute if enacted.

Mayor Brandon Sackbun told the Terre Haute City Council on Dec. 12 that the city has started a five‑year revenue-and-expense projection with Crow, the firm that conducted the city audit, and is using it to plan for a range of possible state changes to property-tax policy. "If any of these proposals do go through, the city of Terre Haute will likely be forced to cut 15% of their staff," Sackbun said, urging council members to continue showing data to legislators.

The mayor said state lawmakers have discussed resetting property-tax assessments to a 2019 base and have floated allowing local governments to add an income tax to fund public safety and other core services. He framed the city's modeling and outreach as an effort to influence the debate and avoid precipitous staffing cuts. "That is the harsh reality of the situation," he said of proposals under consideration.

City officials said they will continue refining revenue estimates and using the five‑year projection to prioritize spending as the 2025 budget cycle proceeds. The administration did not present a specific package of cuts; instead, it emphasized data gathering and advocacy to inform potential responses if the state adopts new tax rules.

Council members did not take action on the mayor’s remarks; the presentation served as context for budget planning and an impetus for further analysis ahead of the 2025 budget process.