LOCAL INCOME TAXES

PUBLIC SAFETY PENSIONS

• SB 69 would raise the salary basis for calculating pension benefits for the 1977 public safety pension plan by 1 point from 52% to 53% and increase the longevity bonus by a quarter of a point from 1% to 1.25%. It would also increase the death benefit from $12,000 to $15,000.
• This proposal is paid for by an increase in the contribution rate for the employees of 2.65 points from 6% to 8.65% and an estimated increased contribution rate from employers of 1.43% (on top of the scheduled increases that resulted from increasing public safety salaries around the state). Amendments in the committee ensure that employers will not absorb the entirety of this contribution rate increase even if they have historically covered the employee contribution.
• Aim continues to work with the bill author to mitigate the fiscal impact of this bill especially given the impact that property tax reforms have had on local budgets as well as the looming uncertainty surrounding the new local income tax system. While that uncertainty remains, municipal members cannot absorb mandatory cost increases.
• SB 69, authored by Sen. Linda Rogers (R-Granger), was voted out of committee 11-0 and recommitted to the Senate Appropriations Committee.

COMMUNITY CROSSINGS

• Many municipalities were concerned about the lack of Community Crossings funding that was awarded to Indiana’s cities and towns in the fall of 2025. As a result, infrastructure improvement plans were negatively affected in many communities throughout the state.
• SB 179 would allow for an additional $75 million call for projects in the spring of 2026 reserved for communities that did not receive funding in the fall call of 2025.
• Aim supports this bill as it helps ease the transition to the new Community Crossings formula without disrupting expected infrastructure investments throughout the state.
• SB 179, authored by Sen. Mike Crider (R-Greenfield), will be heard in the Senate Homeland Security and Transportation committee next Tuesday.

HOUSING

• HB 1001 creates broad new preemptions around local authority to plan and zone housing projects in an attempt to compel higher-density development strategies and lower costs for housing developers.
• It also includes new restrictions on impact fees, which are used to defray the infrastructure costs associated with increased residential development in a community.
• Cities and towns are primary partners and drivers of housing development in the state which has seen a significant uptick since 2020, even in rural areas, due in large part to investments and development-friendly strategies employed by municipalities within their existing authority. Aim opposes large-scale preemption of planning and zoning authority but supports ways that the state, municipalities, and developers can partner together to grow and develop our state.
• HB 1001, authored by Rep. Doug Miller (R-Elkhart), will be heard next Tuesday in the House Local Government committee.

GOVERNMENT MODERNIZATION

• Aim is proactively engaged in conversations with the General Assembly regarding the modernization of local government services and reducing costs for taxpayers where possible.
• Part of this conversation has involved the modernization of township government, especially in areas that are already well-served by municipal or county services.
• HB 1315 provides new pathways to consolidate townships that have low service delivery loads and provides processes to reorganize townships that are coterminous with municipalities to ensure the most efficient service delivery at the lowest cost for taxpayers.
• Aim will continue to work with the legislature to ensure government modernization efforts best serve Hoosiers and support local governments providing necessary services to their communities.
• HB 1315, authored by Rep. Alaina Shonkwiler (R-Noblesville), will be heard in the House Local Government committee next Tuesday.

Listen to more about this week on the third episode of the 2025 Market Street to Main Street Podcast Series, Aim’s legislative episodes of the Hometown Innovations Podcast and a supplement to this e-newsletter. In this episode, Jennifer sits down with Matt to discuss the week at the General Assembly and what we expect in to see in this quick, short Session.

To listen to Market Street to Main Street, please visit The Terminal post and click the “play button” on the audio player. Or you can subscribe to Aim Hometown Innovations Podcast on Podbean, Apple Podcasts, and Spotify.