The outgoing Chairman of the House Ways & Means Committee says the recent decision by the Indianapolis City-County Council to transfer $15 million from the Capital Improvement Board reserves to shore up the city budget is creating “bad blood” at the Statehouse that will likely have consequences.
The Council voted Monday night to levy a $15 million payment in lieu of taxes (PILOT) against the CIB saying the money is needed for public safety.
However, Jeff Espich says when the state came to the CIB’s financial aid a few years ago, it was not to create a “slush fund” for the city but to put it back on the road to solvency.
He says the city will have a hard time getting proposals like mass transit through the General Assembly because the Council’s actions are raising an issue of trust.
You can hear Espich’s comments below. They run approximately 5 minutes.
Espich’s comments mirror those of State Senator Luke Kenley who warned the city was making a mistake by taking money from the CIB to use for city coffers.